People are often curious about how certain home improvements will affect the value of their homes. The chart of percentages displayed here presents some findings compiled by the Appraisal Institute of Canada from their 2008 membership survey. It is intended to give the homeowner a very general idea of the potential that certain improvements have in adding value to your home.
|Central air conditioning||25-75%|
|New windows and doors||50-75%|
|New exterior siding||50-75%|
|Addition to dwelling||50-75%|
|Energy efficient features||Avg. 61%|
- Improvements that are commonly found in the area the home is located in will almost always deliver the highest returns.
- Renovations in homes that have a lower market value when compared to other homes in the area generally see a higher return from home improvements.
- Poorly done renovations have a smaller upward impact on the home’s value, and can actually have a negative affect on property value.
- Renovations done on a home that is generally in poor repair overall have a minimal impact on its market value.
- It’s rare that renovations recover their full cost in added value. Home owners should understand that there is some value associated with enjoyment of the improvement.
- Not all improvements are created equal, even those that might fit in the same category. For instance, in a bathroom renovation a “spa type shower will add roughly 36% of it’s cost, while a Jacuzzi or whirlpool type tub recovers approximately 65% of its cost.