Are High-End Finishes Worth it When it Comes to Resale?
Buying a new home naturally comes with a lot of decisions to be made…
- What community do you want to live in?
- What style of home suits you best?
- What kind of budget do you have?
But there is one additional item on the list that many homeowners consider for both buying and selling…
Are high-end finishes worth it?
That is, do they improve the value of the home?
To determine the answer, there are many variables to consider. Some finishes are worth investing in and others, while nice to look at, are simply neutral in the overall home value.
The Atlus Group reported that Canadians spent almost $80 billion on home renovations and that number continues to grow. Does that mean homeowners have found the key to economic prosperity — expensive renovations that pay dividends at resale?
Unfortunately not…In fact, the average amount recouped for home remodeling projects is on the decline. According to a survey of real estate professionals, this year’s average return on 21 popular remodeling projects came in at 66.5% nationally, down from 68.6% in 2019.
Here are some things to think about before deciding on that more expensive upgrade.
Who Is the Upgrade For?
If you’re buying a new home and planning to remain there for a significant amount of time, spending the extra dollars on certain finishes may be worth it.
You’re designing the home for you, and you want to feel satisfied with the overall look and feel of your home. Consider this: if you opt-out of those preferred finishes, will you feel the need to renovate it to be happy?
However, If you’re remodelling the home for sale, there are certain items where you won’t see a return on investment. Heated towel bars aren’t going to improve the overall value of your home, and most home buyers won’t choose a home based on these features.
Other items that just aren’t worth it include:
- Extravagant lighting fixtures – these are extremely personal in taste and the odds of finding a pendant you love that possible buyers will also adore are very slim. Simple is best in this case.
- Wallpaper – yes, you read that right. It’s made quite a comeback in the last few years. However, this is another item that is dependent on personal taste and we’ve all heard the horror stories of trying to remove it.
- Tile – just to be clear, we’re not talking about all tile. In this case, we’re talking about those “fun” tile projects like the backsplash of broken china or “unique” floor layouts.
- Personalized kitchen – while it’s true that kitchens are a great place to invest money when it comes to resale, make sure you don’t go crazy! A $150 faucet is as good as that $500 one, and it’s much easier on your bank account.
- Extravagant bathroom – it’s the same case in the bathroom. Over-the-top finishings in here won’t help your home’s value.
For resale, investing in quality countertops like Quartz, and flooring, such as Luxury Vinyl Plank, and making minor cosmetic changes (like fresh paint) will command a higher value for your home. But don’t go overboard; most home buyers will want to personalize their new home to their style, and the upgrades you spent money on may be removed in the end anyway.
Looking for some high-end finishes that are a good idea? We have that too!
High-End Look Doesn’t Need to be High-End Price
It’s common knowledge that bathrooms and kitchens are big players in a home’s value. Whether you’re building a new home and making finishing selections or remodelling your home to sell, you can choose finishes that are a modest cost but still produce a high-end look.
Selections such as classic tile flooring, fresh wall paint, replacing wall-to-wall mirrors with decorative ones, and replacing cabinet doors are all worthy investments to increase the value of your home. Note we said cabinet doors? You don’t have to replace all of your cabinetry! Doors and hardware go a long way.
Including a kitchen island in an older home is another solid investment; many people look for these as it provides a central gathering area, more storage and seating, and a focal point in the kitchen.
Install open shelving in the bathroom to provide extra storage and add a more modern look. A single strip of backsplash tile for your bathroom vanity adds both elegance and extra protection for the walls and granite or quartz countertops will always add value to your home.
Whether you’re buying or selling your home, the right appliances make a significant difference to the resale value. If your appliances are mismatched, this can make your home feel unfinished or patched together. Selecting a uniform design (although the brand doesn’t always have to match) will create a more finished and upscale look.
The right appliances will add value to your home, but unless the home is in a super high-end community that demands it, refrain from spending an excessive amount on appliances. You won’t see the return on investment for the absolute top-end appliances.
Ensure the appliances in your home are energy efficient for today. Buyers do consider the cost of operation, and some are concerned about environmental responsibility.
Compare Cost vs Value
It’s easy to justify for yourself that gorgeous kitchen design that adds $50,000 cost to your home, but does that equate to $50,000 in value when it’s time to sell? Not likely.
Do your research to ensure the decisions you’re making about the cost of the upgrade will turn into value for your home.
Is the Home in an Upscale Community?
If your home is in a higher-end community, whether you’re buying or selling you’ll need to match the level of finishes and appliances in the home with that of the rest of the neighbourhood.
If you’re building a new home in this type of community, consider the type of finishes that future buyers of your home will demand. Likewise, if you’re selling your home ensure the finishes the home currently has are up-to-date and appealing to buyers.
There is nothing wrong with spending a little extra on your home to get the finishes you really want. In most cases, these selections will give your home a finished and cared for look and feel. But be careful not to spend too much, as not everything you spend will be guaranteed to add extra value.