How Renovations Affect Your Home Appraisal Value

If you own a home that was built in the last century, chances are you’ve thought about giving it a few modern updates. And if you recently purchased an older house because it was one of the few affordable options left in Toronto’s real estate market, we don’t blame you.

With prices continuing to rise across Canada, even getting a foothold on the property ladder can be a challenge. But if you’re considering renovations and wondering how they might affect your home appraisal, you’ve come to the right place.

At The Appraisal Hub, we specialize in appraisal services and know the ins and outs of what truly boosts a home’s value. Let’s explore whether remodeling is worth it and which upgrades actually help (or not) in a professional property appraisal.

The Real Impact of Renovations On Property Value

Let’s set some expectations from the start: most renovations do not add a dollar-for-dollar increase to your home’s value. Just because you spend 20K on a spa-style bathroom remodel with a custom sauna (that you never use) doesn’t mean your next mortgage appraisal will reflect a 20K boost in property value.

The key lies in two important factors: 

1. The type of renovation
2. Your property’s location

Some renovations will most likely increase your home’s value and others that will really not (more on that later). On the other hand, depending on the type of market and property, some potential buyers will be more likely to pay extra for certain features. For example, think of Italian marble countertops for a house inside a gated community in The Bridle Path.

And unless you have superpowers, you can’t change your property’s location. But you can definitely be strategic about which renovations you invest in.

Renovations That Add Real Appraisal Value

Which upgrades are likely to impress a real estate appraiser or buyer? Generally, the most effective improvements are those that enhance both function and appearance.

Here are some top contenders that real estate appraisal firms consistently recognize as value boosters:

• A fresh coat of paint (in neutral colors or white)
• Modernizing a kitchen including built-in appliances
• Adding new flooring or a roof
• Replacing the front door
• Converting an attic into another bedroom
• Replacing the AC/heating system (if needed)

Expert Tip: While high-end materials like marble or custom lighting may look beautiful, their return on investment is often low. Property appraisal firms focus on practical value over luxury finishes.

Renovations That Rarely Pay Off in Appraisals

The good news is that almost no renovation will decrease the value of your home, what some can do is not increase it at all, making them a cost in the long term, especially if what you want is to sell a property.

Here are a few common upgrades that usually don’t affect your home appraisal:

• Installing a pool (in a neighborhood where pools are not common)
• Converting a bedroom or garage into something else to some other use (No, you don’t need a wine cellar or a man cave and neither does the new owner)
• Closet renovation
• Plumbing and electrical
• Extensive landscaping
• Crown moldings (higher-end finishes in general)

Expert Tip: If an upgrade is hard to see or too specific to your personal tastes, it likely won’t impress a real estate appraiser. Focus on universally appreciated improvements if your goal is higher resale or mortgage appraisal value.

To Renovate or Not to Renovate?

While the choice is ultimately yours let us give you one last piece of advice.

If you’re in your forever home and you have the budget, go ahead and create the space that brings you joy. Some things are worth the cost simply because they improve your life by making you happy.

But if you’re planning to sell or move in the near future, take a more strategic approach. Every dollar spent on renovations should ideally deliver a return, especially if your goal is to boost your property appraisal or resale value.

So before calling in the contractors, talk to professionals. A qualified real estate appraisal firm can assess your home’s current value and advise you on what’s truly worth upgrading.

Talk to a Property Appraisal Firm Before You Renovate!

Whether you’re planning a remodel, selling soon, or just want a better idea of your home’s worth, The Appraisal Hub is here to help. As one of Toronto’s trusted real estate appraisal firms, we offer reliable, professional appraisal services tailored to your needs.

Let our experienced real estate appraisers guide you through the process. We’ll help you understand how your upgrades could impact your home appraisal, before you spend a cent.

Contact us today to schedule your property appraisal and make sure your next move is a smart one.