Some renovation projects and upgrades improve the aesthetic appeal or functionality of a kitchen, but will do little to earn back their initial cost. West Hillhurst home buyers may be less than enthused with the new upgrade and a seller may be reducing their profit by investing too much on kitchen renovation projects without a high return.
There are multiple factors that will come into play, such as the time that elapses between when the project was completed and when the home is sold. However, there are some home improvement projects that will give as much as a 64 per cent ROI. Learn more about a few kitchen home improvement projects worth the investment today.
Replace Kitchen Windows
Some updates are not obvious eye-catchers but they save owners and potential buyers money over the long-term. The Appraisal Institute of Canada (AIC) offers general tips about home renovations with the best return. As stated by the AIC, replacing windows have an estimated ROI up to 75 per cent.
Homeowners looking to reduce their energy bills in older homes can benefit from energy-efficient windows that can reduce drafts, keeping homes cooler in the summer and warm and toasty during colder months. Smart and energy-conscious buyers may be attracted to homes with such upgrades, knowing that older windows can be a significant factor in the energy loss within a home.
Other Inexpensive Upgrades
A staggering return of up to 165 per cent can be had from a fresh coat of paint. This easy fix can brighten a high-traffic kitchen area and make it a more inviting space. Go with neutral colours, such as cream, white, beige or navy. Replacing doors and updating kitchen lighting fixtures are also good investments in terms of ROI. Hot kitchen improvement trends in the past have included hardwood flooring, a kitchen island and built-in kitchen appliances.
Kitchens Can Hold Their Value
As a high traffic area, kitchens are known to retain their value when the space has contemporary and neutral finishes. It may be relatively easy to reduce costs of a renovation by resurfacing wooden kitchen cabinet doors and swapping out the hardware. Full renovations may be needed when the kitchen layout is outdated or when cabinets cannot be saved. Get good value from replacing kitchen cabinets when choosing semi-custom cabinetry which offers interior storage options and decorative accents.
AIC shared that a homeowner may expect a ROI of 75 to 100 per cent on a significant kitchen extension or remodeling project. This range stands the test of time when it comes to refurbished kitchens and bathrooms. However, the return may be reduced when owners plan on living in the home for a decade or more before putting the property on the market. In addition, if upgrades are made that are not in line with the tastes of the majority of potential buyers or with current comps, an expensive but unique upgrade can actually deter buyers. The largest ROI on an upgrade would be seen when house value is lower than the average market value in a specific neighborhood.
Learn About the Local Market
It may pay off to understand more about the state of the local market, how to get the best return after a completing of a home improvement and the home's current value. Contact a qualified Canadian real estate agent to learn of the most attractive kitchen home improvement projects to potential buyers.