Renovating your home? Most often the question is what renovations increase the value of my home the most? Well, the answer is never simple. Before pulling out the sledgehammer, you’ll first need to think about your goal. Why are you renovating? For your personal enjoyment or for selling in the near future?
Following are some tips and thoughts on renovations that increase the value of your home in Calgary, as seen through the eyes of the buyer. Also, learn more about why the ROI, return of investment, is not that reliable.
With a vast array of choices in materials, colors, finishes , layouts and budget considerations, we hope to offer some insights that help you make informed decisions. In this article, we discuss kitchens, bathrooms, flooring, painting, basement developments, income suites, solar panels, and much more!
The kitchen, the center of the home
For many people, the kitchen is the center of the home, where family and friends gather, eat and make conversation. The kitchen is often an eye catcher that can increase your home value. If you are renovating the kitchen for your own enjoyment, go at it and renovate it to your liking. If you are renovating the kitchen for the potential sale of the home, consider the following.
In general, granite and quartz countertops are most popular. However, don’t just replace the countertop with granite or quartz on an older (oak) kitchen. That will be a waste of money, better spent elsewhere. If the space allows it, create more counter space and add a double sink. Regarding cabinets, although there is no strong preference, in general, a lighter toned kitchen is slightly more popular than a dark toned kitchen.
Appliances come in all ranges and prices. These days, buyers expect stainless steel appliances, not black or white. If the budget allows it, a fridge with double doors and ice maker is most popular. Regarding cooking, most people prefer a gas stove. However, to install a gas line is usually an expensive undertaking. In general, ceramic and electric cook tops are generally expected and accepted. To avoid grease on the walls, a tile backsplash is usually valued.
Cooking smells are usually not very pleasant. Therefore, a range hood that vents to the outside is most desired, as opposed to a range hood that just circulates the air.
Every home has a certain audience or target group. It is important to recognize what renovations make a difference to that particular audience.
Don’t underestimate the lighting in a kitchen. Good light in the kitchen is essential for cooking, but it also brings some ambiance to the kitchen. Besides regular light fixtures, you may consider track lights under the cabinets since those are liked by many buyers.
Lastly, open concept is most popular and will enhance the value of the home. Opening up the kitchen and living room is an expensive undertaking. Most newer homes already have this open concept, but many older homes, such as bungalows, don’t. Before venturing out to remove a wall, it is important to determine if it is a load bearing wall.
Bathrooms: choose finishes wisely
Bathrooms are, after kitchens, usually most important to homeowners and can increase the value of your home. Of course, most buyers love the fancy spa type bathroom. However, not every home allows for this. When renovating a bathroom for potential selling of the home, here are some considerations.
The materials used in the bathroom are important. Tiling, for example, is perceived as an upgrade over the acrylic (plastic) tub and shower stalls. Also, glass doors have a much fancier and better look than a shower curtain.
Many people prefer a stand-up shower over a bathtub for use on a daily basis. However, if a home has more than one bathroom, keep at least one bathroom with a bathtub. The bathtub doesn’t need anything fancy such as jets.
Consider a double sink, if possible, but if there is no space for a double sink, go for as much countertop space as possible.
In general, steam showers and in-floor heating are appreciated, but not necessarily an expectation.
Some storage, such as a full cabinet, a medicine cabinet and storage space under the sink are important to buyers, in order to keep the bathroom tidy.
Just like in kitchens, lighting is important in the bathroom, here for shaving and putting on makeup. And, obviously, a nice mirror is an essential item in the bathroom.
Leaks tend to show quickly and alert any potential buyer for the worst: mold. Therefore, always ensure that any leaks are promptly addressed to prevent further damage. If a leak has considerably damaged the cabinet under the sink, consider replacing the entire vanity.
Also, bad ventilation in the bathroom can cause visible leaking spots on the ceiling. And, again, any potential of mold alarms buyers quickly. Therefore, make sure that the bathroom has a good ventilation system.
Furthermore, also for bathrooms the same rule applies; keep colors light and neutral. Just like a kitchen, repainting cabinets or the vanity could be a cheaper option, as long as it is done right.
Flooring always draws attention in a home
Because flooring extends through the entire home, it usually draws a lot of attention from potential buyers. Therefore, in order to increase the value of your home, it is important to install the flooring correctly or get a professional to do it. Buyers don’t like gaps and cracks in between planks. And from the buyer’s perspective, addressing these gaps requires replacing the entire floor. Instead of replacing the hardwood, check if refinishing the current hardwood is an option. Refinishing hardwood rather than replacing it is sometimes more cost effective.
And if the home still has the ‘old fashioned’ 1960’s hardwood, consider leaving it in. This is solid hardwood, is refinishable, and many buyers seem to like it.
Secondary income suites can increase the value of your home in Calgary. However, a secondary suite can also narrow the pool of potential buyers
While hardwood floors are the most popular choice, vinyl plank has increased a lot in popularity in the last years. Vinyl plank is more durable for preventing scratches and manages water spills much better than hardwood. Therefore, vinyl plank is also a popular choice in bathrooms and kitchens.
Laminate flooring is cheaper and less durable than vinyl. Laminate has lost some popularity in recent years, although the quality and looks have really improved. When renovating on a budget, laminate is still a good option. However, avoid the cheapest laminate. Not only does it look cheap, the edges of laminate seem to curl at a drop of water or the drool of a dog.
Furthermore, in general, a wider plank seems a bit trendier at the moment.
Carpet is the cheapest option but also the least popular. Carpet, though, is still widely used in bedrooms and generally accepted in those areas. In the case of selling the home, the carpet needs to look clean above everything else. If you need to replace carpet to sell a home, choose a low pile carpet. Most people prefer low pile over high pile for reasons of hygiene.
Ceramic tiles are still a prevalent choice in the kitchen, bathroom and entryway; however, not so much in the Calgary living room. Ceramic tile flooring, though, is very durable, very easy to clean and handles water the best. However, Calgary’s taste and perhaps the climate make it an unpopular choice in a cozy living area.
Bamboo, cork, concrete, linoleum and parquet are some other flooring options that were popular at some point, but not so much anymore.
One important note on flooring is to avoid different types of flooring in every room. It makes the flooring look like a quilt, and that usually doesn’t impress a buyer.
Painting; one of the best returns on investment
For its cost, painting the walls gives a good return on investment. Holes, dings and scrapes get repaired, and the new paint gives the home an overall fresh appearance.
Paint needs to contribute some ambiance to a home. So, when selecting a paint color, opt for the more natural and lighter colors. Lighter colors make rooms feel larger and more open, making them appealing to a wider group of buyers. Also, be aware that white can be too white and can create a hospital-like effect.
It is always possible to look at current trend colors. However, be aware that trends change quickly. Again, lighter paint colors remain most popular.
Painting offers one of the highest returns on investment when preparing a property. However, never underestimate the art of a good paint job!
Never underestimate the art of painting. Cut lines straight and avoid those specks of paint on ceilings and baseboards because those really turn off buyers. Therefore, you may consider a professional to do the painting job.
Paint comes in different qualities. Some paints need three layers, while some need only two or even one to completely cover an old color.
And as the saying goes, you only get one chance for a first impression. So, before selling, also check the outside of the home to see it needs any touch-ups or repainting.
Basement development
A developed basement is a selling feature for a buyer and will increase the value of your home. However, professional development of a basement is very costly in Calgary and usually doesn’t yield enough return when selling the home. So, if a basement development is in the renovation plans, do so for your own enjoyment.
The basement development should be done right in terms of finishes and layout. The ideal basement for a buyer offers a living area, an extra bedroom and a bathroom. Not all basement layouts are ideal, and this is often caused by the builder. Builders often like to skimp on plumbing costs and route the plumbing from upstairs straight down to the middle of the basement, an inconvenient place for a basement bathroom. Often, it is possible to re-route the plumbing to a suitable bathroom location. Consider spending money on this re-location if it helps for a better layout of the basement.
Basements tend to be darker areas in homes in need of light. So, the best option to make the basement lighter is by installing windows. Make those windows as large as the budget allows, to receive as much natural light as possible in at least the bedroom and, preferably, the living area, as well.
A basement bathroom is a key feature many Calgary buyers are looking for
Artificial lights are inevitable, and usually spotlights adding some ambiance are most appreciated. For paint choice, a light-colored paint is best to give the area a more spacious look.
Bathrooms in basements are high on the want list in Calgary. While a stand-up shower is a minimum essential for buyers, a bathtub is not necessarily expected in the basement.
Regarding finishes in the basement, those are usually a little less fancy than the home above ground. Carpet, for example, is generally accepted for basement flooring. A good grade of vinyl plank is already considered an upgrade. Some basements tend to be a bit damp. If that is the case, avoid carpet.
In any case, use a good under flooring and avoid laying any flooring directly on the concrete.
Most homeowners use the basement for extra storage. Besides some closets, a nice and functional storage area in, for example, the utility room is often appreciated.
If you are thinking of doing some renovations for the purpose of selling the home, it is important to keep the appeal for a broader audience
The average buyer does not expect a fireplace in the basement, but it is considered an upgrade. Adding a fireplace to an existing home is an expensive undertaking and installing a nice electric fireplace may be a great option, instead.
For a basement intended as a media room, you may consider using specialized drywall, ceiling tiles and insulation. Those materials are designed for noise reduction.
Also, if the basement has the potential to turn into a secondary suite in the future, adhere to all building codes. Think of the window sizes, a kitchen addition, sound proofing, electrical upgrades, heating, fire safety, etc.
If the basement is undeveloped when the home gets sold, make sure that the basement is clean, tidied up and, foremost, show where the sewer is located. Interested buyers love to get an idea of the design possibilities in a basement.
Lastly, a general, yet important note; before starting a new basement development, always check for building codes and get permits wherever needed! A developed basement that is not compliant to building codes and without valid permits can harm the sale in the (near) future. Basement developments without the proper permits can raise red flags to potential buyers.
Make a list of any improvement, as this will help marketing the home in a future sale!
Secondary or income suites
Secondary income suites can increase the value of your home in Calgary. However, a secondary suite can also narrow the pool of potential buyers. After all, the majority of buyers are interested in buying a home only for their own and their family’s living enjoyment. So, creating a secondary or income suite in Calgary depends on several factors such as cost, location, type of home, etc.
Besides, buyers for properties with a rentable basement suite may need a higher down payment, usually 20% minimum. In most cases, only investors pay a premium for a legal basement suite.
Legal and illegal basement
When selling a home via the MLS, basement suites are specified as being legal or illegal. The city of Calgary promotes upgrading the basement suite to the status of legal, which are placed on the The Secondary Suite Registry list. Legalizing means complying to certain standards for windows, the entrance, the heat source, fire safety, etc. If a basement is currently illegal, it may be worth contacting a professional renovator who understands the legalizing process and inquire about cost. Sometimes homes with illegal suites are even more difficult to sell than those with legalized suites. This often depends on the location of the home, as well.
Windows, roof and siding; pick the right materials
Upgrades to the envelope of a home such as windows, roof and siding are expensive upgrades, which increase the value of your home, yet only to a certain extent. Buyers perceive those items as necessities and as expensive, so if they are new, they increase the home’s marketability. Also, to a certain degree, a realtor takes these costs of upgrades into consideration in the evaluation of the home. (link)
In Calgary, solar panels do not increase the value of your home
Regarding siding, Calgary offers many different options. Vinyl siding is, in Calgary, the cheapest siding, the most used siding but also the least durable. The opposite of vinyl is stucco siding, which is more expensive and perceived as an upgrade. Hardie Plank is very favorable because it has great looks, is a very durable composite and is resistant to woodpeckers and hail damage. Obviously, Hardie Plank is more expensive. Stucco or Hardie Plank are the types of siding that increase the value of your home the most.
Buyers usually relate new windows with saving money on energy but also with being very expensive to install. This tends to give buyers the feel of a double financial gain which increases the marketability of the home. In Calgary, double pane windows are the most common and widely accepted, therefore a great option when selling in the near future. Triple pane is more expensive and considered an upgrade.
In the case where the new windows are installed for personal enjoyment, consider some research into the U-factor, the R-value and E-coating. Those factors indicate the energy efficiency of the windows. One important note to mention is that windows come in different price ranges and, therefore, in different qualities. Avoid cheap brands in a climate such as Calgary’s.
Solar panels don’t increase the value of your home
The general consensus amongst Calgary’s realtors is that solar panels do not increase the value of your home in terms of a higher sale price. The initial cost of solar panel installation is high, and the return in a lower utility bill is not that great. Therefore, solar panels are more likely a personal preference for the homeowner.
Swimming pools are not popular in Calgary
Swimming pools in Calgary homes are rare, either indoor or outdoor. The consensus is that a swimming pool doesn’t necessarily increase the value of your home. Rather, a swimming pool may hinder the sale of a property. Unfortunately, in Calgary, the warm seasons are too short for a person to enjoy an outdoor pool much. As well, swimming pools are expensive to maintain. Even closing the pool up is a costly undertaking, especially the larger pools with concrete walls.
Smart features; smart or not?
Upgrading a home with smart features won’t really increase the value of your home. Public opinion is often divided when it comes to the entire realm of smart features in a home. Many buyers don’t see a significant advantage in, for example, a refrigerator with Wi-Fi. Besides, many smart features are fairly cheap nowadays, and many buyers can and will install their own. So, install any smart features in your home for your personal enjoyment.
Lipstick renovations can help improve appeal
Lipstick renovations are those that are relatively quick and inexpensive. Sometimes, some lipstick is all your home needs to sell it. A few examples of lipstick renovations are painting walls, updating light fixtures and switching light covers, changing faucets throughout the home, installing new hardware on doors, including kitchen cabinets, etc.
Replacing an entire kitchen, including cupboards, is expensive. So, to upgrade on a low budget, see if it is possible to just replace the cabinet doors. Another low budget option is to repaint the cabinet doors. However, repainting cabinet doors is not an easy job, and a sloppy DYI job is easily recognized. And if not done nicely, poorly repainted cabinet doors become a big turn-off for buyers. Calgary has many companies that can refinish kitchen cabinets professionally.
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The highest return on investment possible!
Why the ROI is not that reliable
The percentages of return on investment (ROI) are rather unreliable because they depend on various factors such as the home’s location and the type of home. For example, the improvement of homes built in 1912, 1960 or 2015 all come with different challenges, adding different costs. The location of the home is another factor that needs consideration before deciding which renovations add the most value. An old and outdated bungalow in an area with many infills is oftentimes not worth any renovations.
Every home has a certain audience or target group. It is important to recognize what renovations make a difference to that particular audience. The investor wants functional renovations while the family prefers aesthetic updates. Also, the quality, and therefore the price tag, can make a lot of difference. For example, kitchens and flooring come in all price ranges. However, not every buyer recognizes those differences in quality and pricing, so they won’t always add to the value of your home.
Who are you renovating for?
If you plan to live in the home, you can renovate the home to your personal tastes and spend money on things you love. If you are perhaps thinking about selling the home in a few years, you have to be careful where you spend money on renovations. A bathroom renovation can fall anywhere between $10,000 and $50,000, yet not everyone sees the value in a $10,000 bathtub. And $10,000 bathtubs actually do exist!
Synergy; the 1 + 1 is 3 through the eyes of the buyer
Synergy is the 1+1=3 principle. This principle often applies to home buyers. This synergy principle can go either way, negative or positive. An example of a negative synergy is when a buyer notices two light bulbs not working in the entire house and draws the conclusion that something is wrong with the electricity. Or one small crack in the foundation means that the entire home has foundation issues.
A roof with curly shingles can be a deterrent for a buyer. But if that same buyer also sees old windows, the buyer considers the home as a complete renovation project. And even though a new roof costs about $ 10,000 and windows cost $ 25,000, the buyer feels the home needs at least $75,000 in necessary updates.
In the buyer’s mind, these issues add up to far more than their actual cost, making the home seem like it requires much more work than it really does.
A few notes about renovations in general
In general, if you are thinking of doing some renovations for the purpose of selling the home, it is important to keep the appeal for a broader audience.
Often, it is smart to budget and make renovation plans well in advance. This makes it possible to purchase things on sale. Also, avenues such as Kijiji, Marketplace or Habitat for Humanity are a means to find (used) items for a fraction of the new price.
Know yourself and your qualifications for renovations. Installing a floor looks easy on YouTube; however, doing a bad job is costly. Buyers are quick to judge a sloppy paint job or a bad flooring job. This either invites buyers to come in with a low offer, or they pass on the property.
Thinking of selling? Read the following articles for tips on getting your home ready to sell:
Tips for showing your home
Selling your home? First impressions count!
Selling your house? Where to start
There is a buyer for every home
Well maintained or completely neglected? Entirely outdated or gleamingly renovated? There is a buyer for every home. Some old homes are near their original state with a pink bathtub, carpet in the bathroom and appliances from the 70’s. (Yes, from the time they actually made appliances to last!) Those homes appeal to an audience who likes a home with strong bones, so they can renovate to their liking. A neglected home in need of work may interest the flipper or investor. And the home with nice renovations that requires little work appeals to the family who loves that neighbourhood. In short, again, there is a buyer for every home as long as the home is priced accordingly to its state, location and characteristics. To dig deeper into the art of evaluating a home to sell, read how the CMA is done.
Are renovations worth it? Ask a Realtor
Renovating before selling? The best advice is to ask a realtor for an onsite visit. Which renovations offer a return on investment depend on many factors. A realtor has the experience to assess the overall state of the home, give insight on the target market and give pointers about the chance of selling the property ‘as-is’ or with potential renovations.
A realtor with a legal background
We are Tanja van de Kamp and Ariette van Pelt, working as a team, both buying and selling homes in Calgary. Since 2004, Calgary has been our home, and real estate has been our full-time profession since 2009. Tanja was a lawyer in The Netherlands for 12 years, and learned how to negotiate strategically, and to work in the best interests of her clients.
Thanks to our honest and transparent approach to real estate and towards our clients, we have built our business. Working with our clients has been a privilege. And, over the years many clients, through their many referrals, have shown their appreciation of us. Read our reviews or contact us today!