You may be wondering how much of your expenses you will be recouped when you sell your home. For the last 20 years, in an effort to help homeowners answer the question, Renovations magazine has produced an annual “Cost vs. Value” Report.
The 2019 report has just been released, and highlights include:
• Focus on to upgrades to the exterior as the “best value” projects;
• Highest value home enhancements were: upscale siding replacement using fiber cement materials, wood deck addition, and a midrange vinyl siding replacement;
• The best in home project nationwide is a minor kitchen renovation;
• For Victoria BC and the Vancouver Island Area the average cost recouped 6% higher than the national average and best value projects differed slightly.
The National Association of Realtors collected information from nearly 2,500 responses to a web-based survey. This year, the report found that due to the housing market slump, the percentage of construction costs recovered is lower across all projects compared with 2018. The most likely culprits for the year-over-year drop are slower home appreciation rates due to the lackluster real estate market in most parts of the country and rising remodeling costs.
However, renovating is still a great investment. Over 55% of projects that were undertaken in 2019 are projected to return between 65% and 80% at a home’s resale. This means that your real cost is just 20 cents to 35 cents on the dollar for most home improvements.
Nationally, projects that are at the bottom of the “value” ladder include a home office reno, adding a mid-range sunroom, installing a backup generator and garage additions.
As you might expect, the amount you get back at a sale varies depending on where you are. While the percentage of costs returned in BC and AB cities is fairly constant year to year, within SK, MB, and NB, renovating costs recouped at resale are over 10% greater than the national average.
Also of interest, cities in the northwest that are experiencing a building boom actually fall below the national average when it comes to recouping home improvement costs. One reason for this trend is the fact that because these areas have plenty of new homes on the market and falling in price, buyers are turning their backs on even the most attractive renovated older homes.
Victoria BC Renovations
According to the study, Victoria and Vancouver Island Area of Canada differed slightly from national averages.
Top renovation projects include:
• Fiber-cement siding replacement (93%)
• Bathroom renovations (91%)
• Minor kitchen renovations (88%)
• Basement renovations (87%)
• Wood deck add ons (86%)
Lowest value renovation projects include:
• Sunroom addition (59%)
• Home office renovations (64%)
• Installation of a backup generator (68%)
• Roofing replacement (69%)
• Garage addition (71%)
As fluctuations in Canada’s housing market continue and impact home buyers and sellers nationwide, it is important to stay current on factors that impact your home’s value. Just like investing in stocks and mutual funds, your decision to renovate your home should begin with a considered evaluation of your current circumstances and future goals. For more home improvement information visit https://handymannanaimo.com/