Most of us—Tom and Katie, if you’re reading this, skip to next blog posting—care about our home’s resale value, even if we’re not planning to move anytime soon. We renovate for more space, to update appearances and to increase the value of the house. With the proliferation of home reno TV shows and magazines, homeowners are renovating more than ever before, fixing up rather than selling. Canadians spent $9.2 billion on renos in the first quarter of 2007, an increase of more than eight per cent over last year, according to Statistics Canada, with similar growth in the U.S.

When it comes to return on investment, not all renos are created equal. Some huge investments (installing a swimming pool, for example) curry zero ROI, while seemingly simple and inexpensive quick-fixes (painting kitchen cupboards) instantly up the ante when it comes to resale value. According to the Royal LePage Renovations and Returns Survey, released this week, the top three ROI renos are interior painting, installing hardwood flooring and kitchen upgrades.

The survey ranked renos according to approximate cost and approximate ROI, grouping projects by DIY and jobs that likely require professional help. In the DIY category, painting the interior ($1,000) curries a 50 to 100 per cent ROI; replacing carpeting with laminate ($2,000) is 50 to 75 per cent ROI; and installing new light fixtures ($2,000) has about 60 to 70 per cent ROI.

In the professional section, installing an additional bathroom on the main floor (less than $5,000) has a staggering 80 to 100 per cent ROI; renovating existing bathrooms ($6,500) equals 75 to 100 ROI; and a kitchen reno ($13,500) offers the same 75 to 100 per cent ROI.

The survey outlines 11 upgrades, from simple to complex, that will increase your home’s value. You can read the details yourself here.

Of course, Royal LePage isn’t the first organization to look at home renos and ROI; the web offers an abundance of surveys, some more applicable than others depending on location and climate. Here is a small assortment:

Kitchen design blogger Laurie Burke has a great post on her page, talking about Fidelity National’s Cyberhomes site that allows you to check ROI according to your zip code. You can discover, for example, that if you live within, say, 10 miles of Matt Damon in South Beach, Florida, and you decide to renovate an existing bathroom, the $6,500 spent will increase your home’s value by $8,765. Not bad at all.

Utah blogger Chris Pearson outlines the top 3 rooms to invest in here. He also warns against “over-improving” your home to the point where it doesn’t fit in with the neighborhood and is actually hard to sell. Neverland Ranch, anyone?

CNN warns us that some renos actually lower your home’s resale value. Swimming pools, boxy additions and trendy finishes or fixtures like a 40-jet, Eliot Spitzer-worthy hot tub, are costly to install, have low ROI and might just have your neighbours thinking you never left 1974.

Open House Tips
Conducting an open house is a terrific way to expose your property to many people in a short amount of time. While your real estate professional will advertise and manage the event, it is up to you to make sure that your home is seen in the best light possible. Remember, you only have one chance to make a first impression, so approach the open house as your opportunity to showcase your property. Here are some things you can do to make sure that your home is prepared on the inside and out.

Start with the outside. Do a visual check of the front of the house from across the street. Does it have curb appeal? It should look inviting, with a trimmed lawn and flowerbed and a freshly painted front door. Polish door handles and knockers and replace worn items such as a rusty doorbell. Consider adding a new doormat and flowering plants at the entrance. Do the windows need cleaning? Are there oil stains in the driveway that need removing? While outside, don’t forget to check the side and back yards. Add some flowering plants to the back as well. Rearrange the outdoor furniture to look inviting. Put away gardening tools. Tidy around the grill area.

Now focus on the inside of the home where cleanliness, space, smell and lighting are key. First, get your house in tip-top condition by cleaning and clearing away clutter. Steam clean and vacuum the carpet. Make sure your floors are waxed and shiny. Touch up nicks on walls and make sure the porcelain sinks and tubs and metallic fixtures shine. Your kitchen and bathrooms should pass the white glove test. Be conscious of any lingering odors such as smoke, pets or strong-smelling foods. You may need to air out your home prior to the open house. Consider grinding fresh lemons in the garbage disposal. And don’t forget to empty out all the trash. Look at your countertops in the kitchen and bathrooms and the tops of your bureaus. Do they seem cluttered? Clear away and store as much as possible. You want your home to seem spacious.

Next, set the mood. You want buyers to be able to picture your home as their own. You may want to rearrange the furniture so that rooms look more spacious. Add accessories from rooms with too many furnishings to those that are bare. Lighting is also integral to creating an atmosphere. Bright lights provide a cheerful environment and make a small space appear larger. Pull back all the drapes and open the blinds. Turn on all the lights. Make sure all the light sockets have working bulbs and install the maximum-wattage bulb that is safe for that fixture. For rooms where you want to portray a warm, cozy feeling, use softer lights.

Don’t forget little touches such as fresh flowers, lit candles in the bathrooms, new logs in the fireplace, or a bowl of fresh fruit on the kitchen counter. You may even want to set your dining room table with color-coordinated table settings.

Buying a home appeals to the emotions. Sellers shouldn’t rely on buyers to use their imagination; they need to capture it. Remember that buyers may see seven or eight homes in a single day. The most memorable home will be the one that seemed the brightest, the most spacious and the most cheerful.

*Article Courtesy of Prudential Properties Plus - Buying or selling? Get the Prudential Properties Plus team behind you for the best in Toronto real estate services. We provide you with unparalleled expertise in Toronto, the GTA and Southern Ontario real estate market.

Chris Paulsen

cpaulsen@homerenovationguide.com

Purchasing a home is a major decision that requires careful consideration. Before jumping into the latest home bidding war after falling in love with a home, here are some things to consider:

1. Curb Appeal – The first impression that your home makes on visitors and maybe potential buyers one day is crucial in the price of your investment. This first impression is referred to as curb appeal and is one area often overlooked by home buyers.

2. How does the frontage size compare to others on the street? This is also an important consideration. If you have a very narrow lot that is sandwiched between two large lots, your house may eventually be dwarfed when two large homes are built on either side. Resale value will be drastically diminished.

3. Does the house have an eat-in kitchen? Forget TV dinners: the kitchen is an important room in the house for entertaining and quality family time.

4. Powder room on your main floor. Not only is this important for your guests, but when you’re rushing out of your house, it’s nice to have a washroom on the main floor so that you don’t have to run all the way upstairs.

5. Make sure there is no obsolete knob and tube Wiring. This is a hazard in any home and has to be replaced.

6. Check for mildew in the basement. This can be a sign of other troubles in the house.

7. Are the windows operating? Windows are expensive to change.

8. Galvanized water piping is a definite no!

9. Ensure the house does not slope to the center.

10. Is the roof in good condition?

All of these considerations can help you make the right decision on a good-quality home that you can enjoy for years to come.