Investing in the exterior of your home is important. Not only can exterior home renovations like adding a new roof, windows, or doors add immediate benefits and curb appeal, they have the potential to increase the value of your home and give you a greater return on investment (ROI) when you decide to sell.
A 2021 Canadian Real Estate Renovation Trends report from RE/MAX, which used data collected by Leger marketing firm, said more than half of Canadians renovated their home during the pandemic for personal or “non-ROI” purposes. According to the report, 29% chose to renovate for non-essential “lifestyle” reasons, such as recreation-inspired projects, while 16% of Canadians renovated to increase the market value of their home to sell within in the next one to three years.
Similar to interior home renovations, not all exterior renovations are created equal, with some costing much more up front, while others are relatively more cost-effective. If budget is a concern, read on to learn about some of the most cost-effective exterior home renovations that could help increase your ROI when it comes time to sell.
Why is curb appeal important?
The way your home looks from the outside—or its curb appeal—gives potential home buyers their first impression of the property even before they step inside. This is why exterior renovations that help boost curb appeal are important, as the aesthetic look of a home’s exterior can give the buyer a sense of what they can expect to find once they walk through the front door. In other words, if your home presents itself well, the yard is nicely kept, the paint is vibrant, the siding is aging well, and the roof is in good shape, prospective buyers could be more inclined to look inside if they like what they see on the outside.
What are the current trends in exterior renovations?
If you’ve been thinking about completing an exterior home renovation project this year, My Design Home Studio suggests while “farmhouse vibes are here to stay,” five other exterior design trends will gain popularity in 2022, including “a shift toward natural textures, a stronger connection to the outdoors, and a minimalist approach to architecture.”
These trends are:
- Natural textures: Blonde woods, hand-sawn beams, and aged brick are popular, but you can recreate these looks at a lower cost with wood-like siding or stone-like accents.
- Dark exteriors: Pairing lighter siding and brick with moodier blacks and charcoals is becoming a trend, so if you’re looking to sell soon it might be worth the investment now.
- Black accents: External features—like door handles, door frames, locks, shutters, etc.—are being swapped out for matte black instead of classic brass or silver. It’s a more modern look without requiring a total overhaul.
- All-season outdoor entertaining: Adding a patio or deck to your yard can help increase curb appeal, especially when equipped for year-round usage. Covered areas for places with a lot of snow, or lounge areas with an outdoor fireplace (depending on your municipal bylaws) for places that remain relatively dry during the winter, are great additions to help extend patio season.
- Natural light: Large panoramic windows that will flood your home with natural light are definitely a bigger investment than say, a door handle, but they’re a hot commodity as buyers are looking for homes with more natural light.
Top exterior renovations to help your ROI
While trying the latest renovation trends is a great way to ensure your home fits the modern look, there are tried and trusted exterior renovations that are not only cost-effective, but also known to help increase a home’s ROI.
According to Alex Obradovich, a REALTOR® and sales representative with Chestnut Park® Real Estate Limited Brokerage in Toronto, the best cost-effective exterior renovations would be “functional over the cosmetic.”
“Taking a good look at what’s necessary to fix will be the most important when it comes to selling your home in the future,” explained Obradovich. “Common items may be drainage, grading, deteriorated items or heating/cooling efficiency problems like making sure windows and chimneys are sealed properly.”
However, once the functional exterior renovations are complete, Obradovich says cost-effective and cosmetic upgrades to improve your home would be painting and tidying up landscaping.
“Plus, both of those can be done yourself inexpensively,” he added.
Other things to look at would be your roof, garage door, front door (steel and fibreglass are becoming popular materials), and siding. The average cost to install an asphalt roof in Canada is around $4,750 (depending on the scale of the project), while replacing a double-car garage door can cost between $1,300 and $3,500. If you’re trying to stay on budget, you can also revamp your home’s exterior by swapping out old furnishings for newer pieces and adding potted plants and annual flowers for a pop of colour.
The best way to assess what your home needs is by enlisting the help of a REALTOR® who will be able to give you insights into what buyers are currently looking for in your neighbourhood and what renovations may help sell your home quicker—and for a better price.
Your REALTOR® can also provide you with contacts for roofers, painters, contractors, etc. to help you find the best person for the job.