July 27, 2017 | Geoff Geddes
Will a home makeover make you money?
There are many motivations for renovating a home: expanding the space, upgrading the look or even making the neighbours jealous. While they're all valid, the hope to enrich a house's value along with its appearance is one reason that's often cited. And though there's nothing wrong with that on the surface, it's important to dig deeper to see if a higher home value is really in the cards before taking the renovation plunge.
"It really depends on the type and purpose of the renovation," said Greg Macdonald, president and founder of Sage Appraisals in Calgary and a 23-year veteran of the appraisal business.
"I stress to people that the cost of improvements won't always equal the increase in market value. Developing your basement might give you a 50- to 75-per-cent return and the payoff for landscaping is minimal. With certain unique items, like pools, your return will be next to nothing."