The Great Debate: Do Home Renovations Increase the Value of Your Home
I recently wrote about home renovations that add value to your home. That’s a question I get all the time. It’s quickly followed by “If I do this, how much will my house be worth?”
That’s a trickier question.
There are a number of studies that try and calculate what sort of value you can add to a home by improving or expanding the kitchen or the master ensuite or developing the basement. But there is no perfect formula.
There are too many variables in play to know exactly how much a specific renovation will increase your home’s worth, such as:
- the economy
- the neighborhood
- lot size and location
- the overall value of other properties in the area
- the size of the home
- materials use in the renovation
- the current value of the home compared to others on the street.
It’s critical to look at the full scope renovations proposed and the final quality and cost of the work to be sure you are not over or under developing for the neighborhood. This is something we can help with and we’d also bring in a trusted realtor to properly understand all of the issues.
However, we also need to understand the homeowner’s circumstance. I ask lots of questions to get to the heart of the right thing to do.
- How long do you plan to live in the home?
- How will these changes impact your quality of life?
- Why are you focused on making these changes vs. other options?
So ROI is important but it’s not the only variable, unless you are looking at flipping a home or moving in the very near future.
Renovation on your radar? I’d be happy to talk this through. Get in touch at alec@alecwilliamsconstruction.ca.
Alec