What Adds Value To A House in Canada?
The price of housing has been steadily increasing over the years. As home values appreciate, more and more of us are joining the ranks of homeowners. And, if we’re smart, it’s an investment we don’t want to see depreciating.
There is so much more than just the purchase price that contributes to a property’s worth. We all know the location and home renovations are key, but how does this affect our house?
Here are some items for consideration:
1) Living Area – Most people want a house that is neither too large nor too small. The size of a home will affect the market value and selling time, as well as your ongoing costs associated with the property. With housing prices rising, a larger home can mean significantly higher heating bills and more expensive maintenance fees. On the other hand, restrictions may be placed on pets and rentals if you have a smaller house or apartment. In many cases, you may also have to pay more per square foot for upkeep than living in a larger home with more space to spread out.
2) Rental potential – Many people aren’t sure whether they should buy now or rent until later when it makes sense financially to do so. Property values increase along with the age of an owner in most cases. So, whether you choose to rent out the home during these early years or not, it is still a wise investment and can add value to your property, depending on what area of Canada you live in
3) Curb Appeal – The front exterior of a house plays a large role in determining whether buyers come knocking or decide to move on to another property. Studies have shown that if people get past the front door, they look at 70% of what they will eventually buy! A fresh coat of paint and professional landscaping make all the difference in turning heads. Professional landscaping services cost money but can really improve curb appeal and help sell a house faster for higher prices.
4) Lot Size – Property sizes also play a large part in determining values and whether or not they will rent or sell quickly and for top dollar. Whether it is a condo, single-family home or commercial building, the size of the lot can have a significant influence on housing prices. In general, the more square footage you have to build your home on, the higher prices will be. The larger lots are also great for people who want to expand or make an additional structure such as a garage or pool house. Bigger properties not only sell for more, but they cost less per square foot to maintain and keep up.
5) Condition of the exterior – Like interior renovations, exterior renovations also affect value and selling time. However, improvements that pay off quickly include: replacing old windows and doors, painting siding staining wood decks, pressure-washing walkways
Doing these things won’t break the bank but will make a big difference in how much buyers are willing to pay for a home. For example, on average, $5,000 of improvement to the exterior could add $20,000 to the price tag.
6) Construction costs – New homes generally sell faster and at higher prices than older ones. New homes usually come with all appliances and window coverings included, while older ones will need some or all of this replaced, which can cost big bucks. If you’re looking to upgrade the kitchen and bathrooms, adding new windows and painting an outer coat of paint can be just as expensive as building new, if not more so, depending on what you choose.
7) Landscaping costs – This one goes hand in hand with having a well-maintained lawn around your living space is essential when it comes to increasing value. The more time you spend maintaining your yard, the higher your property value will be.
8) Location – This is probably one of the most significant factors to consider when determining how much a home is worth. What are current properties in this area selling for? Where are they located about schools, parks, and amenities? Is it close to work, or do you need to drive everywhere? Offering exceptional things like convenience and location can make the difference between average housing prices and those that pay off quickly.
When deciding which home renovations will best add value, the answer is not as simple as a single “magic number”. Many factors need to be considered when assessing your investment in Canadian home renovations. If you want an accurate assessment of what will deliver real value for your dollar spent, Ultimate Renovations can help! Our team of experts has been helping Canadians make informed decisions about their homes! Reach out to us today!