Mortgage professionals and appraisers know how important it is to help clients know which home upgrades can increase the value of their property and which ones can actually lower it.

In this article, we will explore some of the most common home upgrades and how they affect the market value of a home. We will also show you how Value Connect can help clients get a fair and accurate appraisal that takes into account all the upgrades they have made or plan to make.

Which Upgrades Add the Most Value?

According to a 2019 report by the Appraisal Institute of Canada, the top three home upgrades that have the highest return on investment are:

• Kitchen renovation (75-100% ROI)
• Bathroom renovation (75-100% ROI)
• Painting (50-100% ROI)

These upgrades are considered to be the most valuable because they improve the functionality, aesthetics, and comfort of the home. They also appeal to a wide range of buyers and can make a home stand out from the competition.

Other upgrades that can add value to a home include:

• Flooring (50-75% ROI)
• Windows and doors (50-75% ROI)
• Basement finishing (50-75% ROI)
• Landscaping (25-50% ROI)
• Deck (25-50% ROI)

These upgrades can enhance the curb appeal, energy efficiency, and living space of the home. They can also increase the perceived quality and maintenance of the home.

Which Upgrades Add the Least Value?

On the other hand, some home upgrades have a low or negative return on investment. These include:

• New roof (0-25% ROI)
• New furnace (0-25% ROI)
• Swimming pool (-10-40% ROI)
• Skylights (-10-40% ROI)
• Garage addition (-10-40% ROI)

These upgrades are considered to be the least valuable because they are either expected to be in good condition by buyers, or they are too costly, risky, or personal to appeal to most buyers. They can also increase the maintenance and insurance costs of the home, which is why some of them have a negative return.

Of course, these are general estimates and the actual value of any upgrade depends on the location, condition, and market demand of the home. That's why it's important to get a professional appraisal that reflects the true value of the home and its upgrades.

How Value Connect Can Help You

Value Connect is a leading provider of appraisal management, technology, and data services in Canada. We have a network of qualified and experienced appraisers who can assess the value of any home and its upgrades. We also use a proprietary technology platform that streamlines the appraisal process and ensures quality and consistency.

With Value Connect, you can get a fair and accurate appraisal that considers all the upgrades your clients have made or plan to make. This way, you can help them get the best financing options and avoid any surprises or delays in the closing process.

If you want to learn more about how Value Connect can help you and your clients, contact us today and request a demo or additional information.

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