Home Renovation Tips

Renovation Projects With Some Payback

Whether you're planning to sell your home soon or to stay put for a while, you'd probably rather have any improvements you make to your house add as much value as possible. Here are some popular projects that the Appraisal Institute of Canada rated for payback value in its 1999 Renovations and Home Value Survey.

Interior Painting and Decorating. Sprucing up the walls and ceilings with a coat of fresh paint can be one of the best uses of your renovation dollars with an average potential payback of 73 percent. A new paint job leaves a good overall impression. And it's one of the easier do-it-yourself jobs that can save or eliminate labor costs. Experts advise selecting colors that are neutral or in keeping with today's styles.

The Kitchen. Professional appraisers surveyed agreed that remodeling the kitchen provides an average payback of 72 percent. What if you don't want to spend tens of thousands of dollars to remodel? Try some lower-cost quick fixes such as updating the lighting, replacing the cabinet doorknobs, or installing new counter tops. The payback will be lower, of course, but it might just tide your kitchen over until you're ready for a major overhaul.

The Bathroom. This is right up there in the value-for-money area with a payback of 68 percent for a full renovation. Experts suggest updating the look, but keeping the fixtures neutral. Quick fixes for a lower payback: install an updated mirror, medicine cabinet, or vanity. New lighting can also work wonders.

Exterior Painting. Although most homeowners tend to focus on the interior, potential buyers do get their first impression outside the house. Experts recommend keeping your paint color in line with the neighbors, so think about scraping off that loose paint and giving the siding and trim a fresh coat. Average payback: 65 percent.

Flooring Upgrades. Attractive floors add value, with an average potential payback of 62 percent according to the survey of professional appraisers. But experts caution that this payback could be reduced if potential buyers prefer carpeting, rather than hardwood floors, for example. If you've got wood floors, refinishing them could bring new life.

Basement Renovation. Although the survey found an average potential payback of 49 percent, professional appraisers have a wide range of opinions on cost recovery for a basement refurbishing. Diane Delves, who owns an appraisal firm in Abbotsford, B.C., attributes this to regional differences. In areas where basements are often fully above ground, "you'll get a much better return than you will for finishing a fully below ground basement that will never feel like a great living space due to the lack of natural light," according to Delves.

And what big project reaps the lowest potential payback? Although the survey didn't evaluate this, appraisers Reader's Digest talked to say that investing in an in-ground swimming pool offers below-average payback when it's time to sell your house. Potential buyers often see them as costly to maintain, and they worry about the safety issues. But if you live on a large lot in a high-end neighborhood, or in certain regions such as Quebec, you might improve the odds of a good return.

Following is an informative article printed in Reader's Digest by Julia Slater.