Recouping your remodelling investment may be your goal when you sell your house. When it comes to resale value however, all home improvements are not created equally.
Consider these payback estimates for the most typical home improvement projects. Please note that these payback estimates have been compiled from several published surveys. Payback value depends heavily on the real estate market and prevailing property values. If the market is slow, expect to see less payback than you would in a fast market.It is also important to consider the neighbourhood; if you remodel your house to twice the size of the other homes on the block, it is unlikely that you will be able to sell at double the price.
Lastly Renovations tend to depreciate with time; just as a new toaster is no longer new after 5 years, renovations that were done 5-10 years ago have little or no value.
Project and the average payback at the time of resale:
- Add a new heating or air conditioning system 100% for heating, 75% for air conditioning
- Minor Kitchen remodelling 94%- 102%
- Major Kitchen remodelling 90%
- Add a bathroom 92%
- Add a family room 86%
- Remodel a bathroom 77%
- Add a fireplace 75%
- Build a deck 73%
- Remodel home office 69%
- Replace windows 68% – 74%
- Install a pool 44%
- Install or upgrade landscaping 0% to 60%
- Finish basement 40%