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Home Improvements to Increase the Value of Your Property

Tuesday, March 5, 2024   /   by Teresa Pileggi

Home Improvements to Increase the Value of Your Property

Home Improvements to Increase the Value of Your Property



Homeowners derive excitement from undertaking remodeling projects on their property. For some, the initial idea is to enhance the living space. After all, who wouldn't want an extra bath, a finished basement, a swimming pool, or a state-of-the-art kitchen area? However, others solely focus on increasing their home's value.



Not all that glitter is gold. Remodeling Magazine's 2023 Cost vs Value Report points to a different reality. The truth is that not all home improvements add value to your property. The ROI on home improvements can vary significantly from a mere 21% to well over 100%, depending on the type of renovation project. That exterior siding that makes your home the envy of the Toronto neighborhood may not recoup or break even at resale.


So, what sort of home improvements will increase the value of your property in Toronto and the Greater Toronto Area (GTA)? You can just read on to find out.



6 Property Improvement Hacks That Add the Most Value


Toronto is an evolving world-class city that continues to post high equity gains in property investment. For instance, since 2017, condos and townhouses – representing 37% of total residential sales in GTA – have had a 32% price increase (or 6% per year). To put this statistic in perspective, a condo that cost $550,000 in 2017 would sell for $730,000 in 2024.


However, gone are the days when Toronto homeowners relied on aggressive bidding wars to increase the value of their homes. Those looking to maximize their property's resale value in 2024 must get creative with their choice of remodels to recoup their costs or break even. Luckily, plenty of affordable home improvements can increase the value of your property in Toronto. These include:



    1. Kitchen Remodel


The kitchen is one of a home's most high-traffic, high-use spaces. Modernizing this space can have a massive influence on the value of your property. Alongside the bathroom, it is the most keenly inspected space during appraisals.


Would-be homeowners always check if kitchen spaces are functional and aesthetically pleasing. A total overhaul can be costly and time-consuming. However, below are some subtle yet meaningful fixes that can instantly transform your kitchen's aesthetics: 



    • Replace old appliances with new, matching ones.

    • Refresh the cabinetry.

    • Update the floor with modern tile or vinyl options.

    • Update countertops.

    • Brighten up the space with a light, simple paint job.



    1. Energy-Efficient Fixtures


Energy efficiency is a crucial selling point for properties. 


Today, folks are increasingly conscious of the environment and energy costs. According to the National Association of Home Builders (NAHB), buyers will likely pay more for a home they believe will save them long-term in annual utility costs.


Energy-efficient improvements will not only lower the homeowner's utility cost. They also raise the overall value of the property. Some of the fixtures to consider upgrading to include:



    • Energy-efficient windows.

    • Insulation.

    • Heated floors.

    • Programmable thermostat.

    • Multi-zone HVAC system.



    1. Bathroom Remodel


Bathrooms are unique places in the house and are one of the most frequently used spaces. They represent another critical area for potential home buyers. Similarly, upgrading this space can substantially increase the value of a home.


No one needs to stick with builder-grade fixtures installed with the housing project. If you deem it financially feasible, consider making wholesale changes to the walls, accent, or tiling system. However, simple tricks like installing dual sinks, a new vanity, adding a bathtub caddy or changing your light scheme. Such upgrades will add a touch of luxury to the bathroom and make your home more attractive to potential buyers.



    1. Curb Appeal Enhancements


Your house exterior (curb appeal) sets the tone for potential buyers. It entices them way before they set foot into your home. 80% of home buyers decide to check out inside your house based solely on curb appeal. 


In your first year of ownership, landscaping is the most accessible and affordable way to improve your home's resale value. Invest in fresh paint, well-maintained lawns, healthy trees, and blooming flowers because that is what property hunters relish. Attractive landscaping implies a well-maintained home. 


According to a 2023 survey of leading real estate agents, prospective buyers typically offer 7% higher prices for homes exhibiting superb curb appeal than those with neglected outdoor areas. That said, here are low-coast curb appeal enhancements that can significantly increase the perceived value of your property: 



    • Update your mailbox and house numbers.

    • Refresh your concrete walkways, sidewalks, and the entryway.

    • Install a steel door (which, according to Remodeling Magazine's 2023 Cost vs Value Report, can recoup up to 91% at resale).

    • Paint your front door (use neutral hues to appeal to a broad range of potential buyers).

    • Plant low-maintenance shrubs, leafy plants, flowers, and small trees.



    1. Finish The Basement


Physical square footage is another crucial aspect that buyers look for. Regardless of their income bracket, potential buyers are always looking for that extra space to move freely or accommodate guests at the house.


A basement makeover adds the much-needed extra square footage of living space. It is also an excellent means to attract high-income buyers who relish properties with a functional basement.


Depending on square footage, a basement refurbishment job could range between $6,500 and $25,500. However, this investment could recoup up to 75%. In this age, mortgages are sky-high, and a finished basement can be a priceless income unit rented out monthly or posted to Airbnb.



    1. New Shingles


Replacing the roof isn't everyone's first choice renovation idea. The ordinary homeowner wouldn't readily want to tackle this home improvement. But on the flip side, it is a valuable improvement that's so effective at raising the value of your home.


New shingles, particularly for homes 20 years or older, hold massive selling power as they eliminate future maintenance costs. Given the hefty price involved, it would be prudent to hire an excellent contractor, use high-quality materials, and take out warranties to ensure optimal value and longevity for the investment.



The Bottom Line


Resale condos and townhouses now account for a growing share of residential sales in Toronto and the GTA. The good news is that there are a bunch of home improvements that can increase the value of your property. Some remodeling projects pay off more than others. So, focus on renovation works that appeal to the preferences of the local Toronto real estate market and keep the remodeling buck at a minimum.


















Regards,

  pileggi real estate team, sold guaranteed, trusted broker, trusted realtor, team toronto, sickkids foundation, sickkids hospital, investing, investor, buyers, buying, buying a home, evaluvation, selling

Pileggi Real Estate Team - eXp Realty
Tom Pileggi, Broker
P.O. Box 1665
Holland Landing, ON L9N 1P2
416-917-6566

Information is provided exclusively for consumers’ personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Data is deemed reliable, but is not guaranteed accurate by the MLS®. Copyright 2024 Last Updated April 12, 2024
Information is provided exclusively for consumers’ personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Data is deemed reliable, but is not guaranteed accurate by the MLS®. Copyright 2024 Last Updated April 12, 2024
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