Friday, July 06, 2007

Which Renovations Payoff?

Wonder where you should spend your reno dollars? Which renovations give the greatest payback when you sell your house and which are throwing money down the drain?

Globe and Mail did some asking around and this is what they came up with:

Big no-nos
Pools and Hot Tubs - intensive and expensive maintenance that
home buyers are reluctant to pay for

Where to focus?
Bathrooms and Kitchens- high traffic, high use areas

The article says that women make buying decisions based on seeing themselves spending 3 hours or more in the June Cleaver maybe? If I spend 30 minutes in the kitchen it is 29 too many but the point is keep the kitchen and bath modern, clean and in good repair.

A really useful link is Appraisal Institute Of Canada

The AIC's 2004 renovation survey identified the following renovation projects provide the highest payback potential for homeowners

1 bathroom renovation

2 kitchen renovation

3 painting - interior/exterior

There is an interactive guide where you select type of renovations and estimated reno costs and you get an estimate on the ROI at sale

For Example

Basement Renovations cost $5,000
ROI at sale $2,500-$3,800 about 50% -75%

Kitchen Renovations cost $7,000
ROI at sale $$5,300.00 - $7,000.00 about 75% - 100%

For The Full Article In Globe and Mail
For Interactive Guide To Renovations

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