Return on Your Renovation Dollar

Information from the Appraisal Institute of Canada

Home Renovation Survey
- Painting, kitchens and bathrooms top the list for home renovation projects -

Our residential appraisal specialists have selected the projects that, in their opinion, offer the best potential for "payback" at the time of sale.

Several hundred members of the Appraisal Institute were surveyed and asked several questions: what projects offer the most in dollar value return and what is the average, or range, of payback homeowners might expect?

As well, the appraisers gave details on what home renovation trends were becoming popular in their own market areas.

The results? Payback is highest for a range of projects, including painting inside and out as well as more expensive projects such as kitchen and bathroom renovation.

"Homeowners don't want to spend a lot of money on home renovation, but they do want to maintain value in their house as an investment," says Bob Wade, AACI, President of the Appraisal Institute of Canada. "Kitchen and bathroom renovations are always important in terms of keeping a house modern, but a simple paint job to improve the appearance of a house works well, too."

Upcoming trends in renovation projects nation-wide included adding or creating a main-floor laundry room, a ground-floor home office, built-in kitchen appliances and hardwood flooring.

The real estate appraisers' top 10 renovation projects with average potential payback:
Painting and decor, interior 73%
Kitchen renovation 72%
Bathroom renovation 68%
Painting, exterior 65%
Flooring upgrades 62%
Window/door replacement 57%
Main floor family room addition 51%
Fireplace addition 50%
Basement renovation 49%
Furnace/heating system replacement 48%

- Top 10 upcoming renovation trends -
Main-floor laundry room
Ground-floor home office
Hardwood flooring upgrade in kitchen
Whirlpool bath separate from shower
Built-in kitchen appliances
Addition of kitchen cooking island
Non-neutral interior paint colours
"Smart" house wiring
Home theatre room
Skylights

"The upcoming renovation trends indicate Canadian's desire for comfortable and convenient surroundings," says President Bob Wade. "Projects like a cooking island or a home office just mean added convenience. But people are concerned about style, too, and they're thinking ahead to how they can use technology in the house."