Recession-Proof Home Improvements
How to Set Yourself Up for a Successful Sale
Three things hold their value in economically uncertain times - no matter what. These are beer, lipsticks, and a well-maintained, thoughtfully upgraded home. This makes investing in recession-proof upgrades a savvy decision!
The American Institute of Architects notes that in 2023 the request for residential renovations was up by 30% with kitchens and baths taking the lead, followed by more energy-efficient windows. In Canada, a RE/MAX survey showed that in 2021 when it came to renovations that yield the best return on investment (ROI) 70% of Canadians stated that redesigning larger spaces, such as kitchens or washrooms, was at the top of their list with landscaping taking second place.
Improvements as mentioned above increase a home’s functionality and energy efficiency as well as more pleasing to see. This makes your home more attractive to buyers regardless of the economic climate.
Here are the top 7 home upgrades for the highest cost recovery (money.com).
Refinish hardwood floors: 147% return on investment
New wood flooring: 118%
Upgrade insulation: 100%
Converting a basement to a living area: 86%
Closet renovation: 83%
Complete kitchen renovation: 75%
Bathroom renovation: 71%
UPGRADED FLOORING
The flooring in your home plays a significant role in its overall look, appeal, and functionality. Investing in refinishing an existing hardwood floor can instantly lift the feel of your space. It also increases its durability and longevity. This can be very appealing to a future buyer.
Replacing old floor coverings such as tired carpets or old tile with classic hardwood floors, vinyl or laminate planks, or sleek porcelain tiles, is a timeless investment that will stand the test of time and appeal to many buyers.
ENERGY-EFFICIENT UPGRADES
Buyers today are savvy and environmentally conscious. Energy efficiency is therefore not just a buzzword - it’s a necessity. Energy efficiency reduces your carbon footprint. It also lowers your utility bills. In this regard think of water-saving toilets, on-demand water heaters, LED lighting, smart thermostats, and efficient windows. Properly insulating a home is also a high-demand item on buyers’ lists.
All these various upgrades enhance your home’s appeal to eco-conscious buyers (or most young buyers). They also add real value to your property!
BASEMENT FINISHING
Basements are a highly desirable space in any home, yet an unfinished basement is often an overlooked area in the real estate market. And, it can hold so much potential! Consider finishing your basement and transforming it into a functional living space. This increases your home’s square footage which is great for listing at an increased price.
You can create a cozy family room, a home gym, an office, or a guest suite. Remember, man caves are popular with men! Regardless, any one of these will add versatility and value. They are worthwhile investments for the future.
CLOSET RENOVATION
Do we ever have enough room to store our personal belongings? Probably not. Many closets though are ill-designed. Often shelves are placed far apart and there are not enough of them. Clothes closets lack hanging space for different items and no shelving whatsoever. Installing lots of shelving to accommodate a pantry can be a lifesaver. Different levels of hanging space combined with shelving in bedroom closets are a must. Tailor closet design to the needs of the user if possible.
KITCHEN UPDATES OR RENOVATIONS
As the heart of the home, the kitchen is considered one of the most important areas of a house. With the master bedroom and ensuite, a functional, well-designed kitchen is at the top of any home buyer’s list. In addition, considering that the final decision to choose a home is made by a woman, a great-looking kitchen is a surefire way to boost your home’s value.
Upgrading your kitchen with modern appliances, sleek countertops, and stylish fixtures breathes new life into it and increases its appeal. Focus on functionality and look. Make your kitchen a practical workspace and a visually stunning gathering space for family and friends. Whether fully renovating your kitchen or making minor cosmetic updates, investing in your kitchen is never a waste of time and money.
BATHROOM RENOVATION
Many homebuyers love a luxurious, spa-like bathroom. Who wouldn’t, right…!? If you can invest in upgrading or even completely renovating your main bathroom (ensuite) you’re already ahead of the real estate game.
Consider installing new up-to-date fixtures, tiles, and vanities to achieve a coveted modern, stylish look. Curb-free doorless showers with linear drains and rain shower heads, hand-held or not, are popular. Built-in shower seating and wall niches are on wish lists as well. Not to mention freestanding tubs and plumbing fixtures!
From sleek showers to soaking tubs, a spa-like bathroom is desirable for today’s buyers. They make your ROI undeniable.
CURB APPEAL
We all know about curb appeal, I’m sure. We also know that first impressions matter. In social situations, in communication, in the workplace, I could go on and on. And, it matters a lot when selling your home. Boosting your home’s curb appeal is a cost-effective way to make a lasting impression on potential buyers.
Invest in landscaping, fresh paint, and exterior repairs to enhance the overall appearance of your home and create a welcoming atmosphere. If the garage is the focus of your home, upgrading your garage door can be the best investment you’ll make. Nothing says more than neglect when showing an old, crooked door as first-time viewers walk up to your home. Stand out in your neighbourhood by upgrading to a different model than the standard builder’s model and people will surely take notice.
Whether adding colorful flowers, updating your front door, or refreshing your siding, curb appeal enhancements can significantly increase your home's marketability and value.
These are the most commonly recommended improvements you can make to your home. Choose the one(s) that give you the biggest bang for your buck. Discuss it with your real estate agent and get some input from contractors and suppliers.
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