Types of Home Renovation to Increase Home Value

So, you’re ready to renovate your home. You have a vision, you have a budget, and you have a plan.

The catch?

You want the biggest bang for your buck and are unsure of which renovation will give you the highest amount of resale value.

This article will share the main types of home renovation, the intensities of renovations, and which renovations provide the greatest amount of value.

Let’s start.

Key Takeaways

  • Bang-for-Buck and Full-scale renovations are the most effective in increasing the ROI on a home
  • Passion projects like swimming pools should be avoided as they don’t give the best ROI

The Four Main Types of Home Renovations

There are four main types of home renovations:

  • Basic.
  • Curb Appeal.
  • Bang for Buck.
  • Passion projects.

Homeowners usually do a mix of renovation types when it comes to renovating a home. Between 2021 and 2022, homeowners spent an average of about $13,000 renovating the inside of a home and $6,600 on the outside (1). However, not all renovations are made equal or return an equal amount when re-selling.

Most investors focus on bang-for-buck renovations, while homeowners focus on passion projects. I will share more on what each type of renovation means below.

Which types of renovations will add value to your home?

Basic

When it comes to types of home renovation, basic renovations are there to ensure your home is livable.

This means there’s a solid roof over your head, no leaks, a proper HVAC system, proper floors, and no holes in the walls. This also means the electoral wiring is tidy and that there’s functioning light in every room. Basic renovations are what every prospective buyer expects a home to have.

You can upgrade a few features in a basic renovation, but the goal here is to bring it to the same level as other homes in your neighborhood, not over. For example, you could renovate the lighting to have more than one source and use a variety of fixtures to create basic interest.

“Lighting is important for a home renovation. You can enhance a basic renovation by layering lighting. Architectural design, like eye-catching chandeliers, can help create interest in a space. Even changing the type of lights in a room and layering them on one another, and adding a mix of soft yellow light and bright white light can help,” stated Camille Dubuis-Welch, a Contributing Editor of Homes and Gardens.

Enhancing bedroom lighting as part of the upgrade project

Enhancing bedroom lighting as part of the upgrade project

Curb Appeal

Curb appeal is a type of home renovation that increases the appealing qualities of a home the moment prospective buyers see it. There is less of a return when doing these types of renovations, but it does help your home to sell faster.

These appealing renovations include a perfect lawn, low-cost landscaping, fresh paint on the front door, and fresh paint on the walls within your home. This can also include new fixtures like address numbers on the exterior, or new backsplashes in the kitchen.

When doing curb appeal renovations, it’s essential to remember that you want to do renovations that are muted in tone and color. Edging on subtle instead of bold makes the renovations appeal to a broader audience and will help your home sell faster.

Bang for Buck

Bang-for-buck renovations are the type of renovations to increase home value and give the highest return on investment. These types of renovations are suitable for homeowners who want to increase the value of their homes and are willing to put their money in the right place.

Some of the best bang-for-buck renovations include upgrading hardwood floors, upgrading insulation in the walls, and finishing the basements.

Passion Projects

Passion projects are every homeowner’s dream when it comes to types of renovation. These are the projects that bring the most satisfaction but do not contribute much, or at all, to the resale value of a home. Passion projects are often tied to a person’s hobbies and are very personalized or specific, which may not appeal to many home buyers.

A few examples of passion projects include a swimming pool, tennis court, wine cellar, ponds, and game rooms. Many of these passion projects are a massive investment and can even make your home less desirable if you’re planning on reselling it. For example, a swimming pool may seem like a maintenance hassle for some potential buyers. Other buyers may not enjoy the choice to turn a garage into a games room. It’s essential to keep these points in mind when doing renovations that edge on passion projects.

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The Three Intensities of Home Remodeling

Home remodeling has three intensities, or levels, of which homeowners should be aware. It will help to classify your renovation and determine what type of budget you’re looking at. The types of renovation levels are listed below:

  • Facelift.
  • Pull-and-replace.
  • Full-scale.

Facelift

A facelift is a minor intensity of renovation that doesn’t require much effort, resources, or cost. There are no structural changes or material changes. An example of a type of facelift renovation would be a new coat of paint. Facelift renovations are fairly quick and inexpensive, so they appeal to home renovators who want to update their home without much hassle or fuss.

An example of a facelift renovation includes installing a kitchen backsplash in your home. Labour costs average around $40 – $60, while the cost of materials is around $400 – $600, depending on the quality of the tiles.

Renovated kitchen with a focus on a revitalized look

Renovated kitchen with a focus on a revitalized look

Pull-and-Replace

Pull-and-replace renovations are a type of intensity where work happens without any structural changes. These are more common home renovations that usually take slightly more time, costs and work as compared to facelift renovation.

Another example of pull-and-replace is a new trim for your home. Installing new trim can range between $0.50 – $2.50 per linear foot.

“New trim in your remodel project is the edge material that covers the seams between doors, walls, and floors. You may recognize trim as the baseboard trim that is placed in almost every home and is replaced in almost every renovation type. It serves as a transition between floors and walls,” explained Timothy Dale, an expert writer of Better Homes & Gardens.

Full-scale

Full-scale renovations are the most complicated and intensive types of renovations. They usually involve structural changes and require a larger budget, more time, and professional expertise to get the job done. However, these renovations usually provide the most profound type of change for a home.

For example, a full-scale renovation could involve moving a sink from a wall to an island in a kitchen, which could run upwards of $5,000.

When I speak with my clients, it is full-scale renovations that I find give the most benefit to a client in the long run, and increase overall feelings of satisfaction for a project.

Also Read: Where to Stay During a Home Renovation

Examples of the Types and Intensities of Home Renovation

Here is a table that includes the types and intensities of home renovations in Hamilton and the GTA and their examples below.

FaceLiftPull-and-ReplaceFull-Scale
BasicA new coat of paintNew HVAC systemX
Curb AppealNew sidingReplacing landscapeRelocating light fixtures
Bang for BuckXNew exterior address fixturesReplace the siding with stone veneer
Passion ProjectsXHigh-end fixturesConverting the pantry to a wine cellar

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Types of Renovations to Increase Home Value

There are many types of home renovation that you can do to increase the value of your home. All renovations are worth it at the end of the day, as 93% of homeowners have reported a higher quality of life after the conclusion of their renovations (2). However, it is important to know that home renovations that increase resale value the most are Curb Appeal and Bang-for-Buck renovations. This includes renovations like a manicured lawn and fresh stone veneer.

Included below are some of the most effective home renovations in Brampton and the GTA for increasing home resale value:

  • Kitchen renovation.
  • Bathroom renovation.
  • Other interior renovations.
  • Basement renovation.
  • Exterior renovations.

Kitchen Renovations

A few of the most return-on-investment (ROI) renovations you can do for your kitchen renovation in Toronto are adding a backsplash and updating the kitchen lighting. Layered lighting with a subtle, modern feel will be attractive to more potential buyers and increase your home’s attractiveness.

Bathroom Renovations

Any sort of renovating you do for the bathroom is going to increase your home’s resale value and attract buyers. Out of possible renovations to complete, you can consider upgrading the bath to a walk-in shower, updating the tiles, lighting, and fixtures, and finishing the renovation off with a subtle yet fresh coat of paint.

I recommend upgrading a tub to a walk-in shower when I talk with my clients, as this is a lasting trend that can increase the value and attractiveness of a home by a considerable amount.

Bathroom renovation featuring a walk-in shower

Bathroom renovation featuring a walk-in shower

Interior Renovations

There are a number of interior renovations that immediately add value to your home’s property. These include replacing the HVAC system and giving everything in your home a fresh coat of paint.

To appeal to a broader audience, you can consider increasing the accessibility of your home. This means eliminating stairs or creating ramps instead. 

Other renovation ideas include updating carpets with hardwood flooring and adding or updating your home’s light fixtures. With the help of an interior designer like the experts at Renowell, you can get help with finding the right fixtures that bring out tranquility and interest in your home.

Basement Renovations

Another renovation that increases your home’s value is renovating the basement. A renovated basement can make your home feel more complete, intriguing potential buyers who may want to rent out the basement or enjoy it.

Pro Tip: It’s essential not to get carried away when renovating or finishing a basement. It’s easy for these to become passion projects, where it’s less likely you’ll get a return on your investment.

Exterior Renovations

There are several exterior renovations that can be done to a home to increase its resale value. Many of these, like replacing the garage door, flounder the Curb Appeal type of renovation and give potential buyers a better first impression of your home.

Some exterior renovations to consider include:

  • Add a deck and add lighting to your deck.
  • Replace the front door with a steel one.
  • Place stone veneer on your home’s exterior.
  • Replace the garage door.
  • Replace the siding.
  • Update the windows.
  • Replace the roof.

According to CNBC, placing a stone veneer on your home’s exterior recoups your cost by 102% (3). It is a Curb Appeal type of renovation that not only increases the initial impression of your home but also makes the home more beautiful in the long-run for you as a homeowner or potential buyers to enjoy.

Also Read: Home Renovation Grants for Seniors in Ontario

How to Know What Types of Home Renovation Increase Value

The best way to know what types of home renovations in Mississauga and Toronto increase value is to know what potential buyers are looking for and interested in. Eye appeal is super important, with emphasis on lawn care and new exterior fixtures. This ties into Curb Appeal renovations, where the first impressions of a home take precedence. 

Pro Tip: Whatever home renovation you do, it’s essential to remember that neutral tones and subtle pops of interior design will go further in the long run when pleasing more home buyers.

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Home Renovations to Avoid if You Want to Increase Resale Value

There are some key renovations you want to avoid if you want the maximum resale value for your home. Home renovations not to be pursued include most passion projects. This is because they are usually pricey to invest in and don’t increase the value of your property when you want to resell.

A few examples of passion projects to avoid include converting a needed room, like a garage, into a games room. This is because most buyers will look for a place to park their car instead of a renovated games room. Another example includes installing an inground swimming pool, as it’s a high-maintenance facility, and making a walk-in wine cellar in your home. Unless buyers are avid swimmers or wine enthusiasts, this will turn away potential buyers instead of drawing them in.

I recommend, if you still want to do passion projects, to do them on the more low-key side. Convert a section of the basement into a games room instead, and leave your design choices more subtle and tasteful to attract more buyers.

My Experience with Discovering the Types of Home Renovation

In my experience with discovering types of home renovation, it’s varied. When clients come to me, I can usually classify what types of home renovation I’m walking into. If, for example, someone is asking for a kitchen island and an open concept, I know the renovation being asked is a full-scale bang-for-buck project with just a dash of passion projects.

Ineffective Methods to Discover Types of Home Renovation That Increase Resale Value

There are a few ineffective methods in discovering the types of value-increasing home renovations, which include:

  • Over Personalizing with passion projects. If you want to add a touch of personality to your renovation, I always recommend this. But over-personalising can make your home too isolated and unappealing to potential buyers if you’re planning on reselling it.
  • Ignoring the local real estate trends. It is always smart to check the other homes for sale in your area and even ask for a tour. If the homes in the area don’t have crown moulding, it’s a wise move to avoid adding crown moulding to your own renovation.
  • Overspending on high-end features. High-ticket items like a walk-in wine cellar, hot tub, or swimming pool can be costly to install. Unfortunately, these don’t offer a lot of value for your home. Instead, well-rounded renovations, like new kitchen cabinets, are a better bang for your buck.

Frequently Asked Questions

What renovations add the most value to your home?

Out of all the renovations you can do, kitchen and bathroom renovations add the most value to your home.

Conclusion

Deciding which type of renovation you want to go ahead within your home doesn’t have to cause stress and a headache. Knowing a few of the basics, like which types of home renovations exist, can help you point in the right direction. If you can pick out a renovation and categorize it by type and intensity, and if it’s a type of renovation that would attract potential buyers, you’re miles ahead. You will likely succeed if you want to resell your home, and potential buyers will enjoy your renovations more.

What are your thoughts on the types of home renovations? Share with us in the comments below!

Additional References:

  1. Global News (2023.) Canada’s renovation boom continues despite heftier costs and rising interest rates. Retrieved from: https://globalnews.ca/news/9274657/home-renovation-boom-continues-canada-interest-rates/ 
  2. Today’s Homeowner (2023.) Top 33 Home Remodeling Statistics and Trends of 2023. Retrieved from: https://todayshomeowner.com/home-finances/guides/top-home-remodeling-statistics/ 
  3. CNBC (2023.) Ready to remodel? Retrieved from: https://www.cnbc.com/2023/03/27/remodeling-these-home-projects-offer-the-best-return-on-investment-.html