Renovation ROI: Which Upgrades Actually Pay Off?
I've seen homeowners spend $50,000 on renovations that add $10,000 in value—and others spend $20,000 that add $40,000. Here's what I've learned about renovation ROI in the GTA.
From Savie Wander
After helping hundreds of clients buy and sell homes across Oakville, Burlington, Mississauga, and the GTA, I've seen which renovations actually move the needle on property values—and which ones don't. Let me share what I've learned so you can make smart renovation decisions.
What Is Renovation ROI, Really?
ROI (Return on Investment) for renovations is simple: how much value does your renovation add compared to what you spent? But here's the catch—not all value is created equal.
Renovation ROI Formula
ROI = (Value Added - Renovation Cost) / Renovation Cost × 100
A 100% ROI means you doubled your money. But in real estate, even 50-75% ROI can be excellent if it helps you sell faster or for more.
Important Distinction
There's a difference between value added and cost recovered. A $30,000 kitchen renovation might add $25,000 in value (83% ROI), but if it helps you sell your $800,000 home for $825,000 instead of $800,000, you've actually recovered your full investment—and then some.
High ROI Renovations (The Winners)
Based on what I've seen in the GTA market, these renovations consistently deliver strong returns:
Kitchen Updates
75-100% ROIThe kitchen is still the heart of the home. But here's what I've learned: you don't need a full gut job.
What Works:
- • Cabinet refacing: $8,000-$12,000 can transform a dated kitchen
- • New countertops: Quartz or granite makes a huge difference
- • Updated appliances: Stainless steel is still the standard
- • Fresh paint & hardware: $500 can make cabinets look new
What Doesn't:
- • Over-customization: Unique colors or layouts that only you love
- • High-end finishes in mid-range homes: $50,000 kitchen in a $600,000 home
Bathroom Refresh
70-90% ROIBathrooms are the second most important room. But again, small changes can have big impact.
What Works:
- • New vanity & mirror: $1,500-$3,000 transformation
- • Updated fixtures: Modern faucets and showerheads
- • Tile refresh: New backsplash or floor tile
- • Paint: Fresh, neutral colors
Pro tip: A full bathroom gut can cost $15,000-$30,000 and might only add $12,000-$20,000 in value. A refresh for $5,000-$8,000 often delivers better ROI.
Paint & Flooring
100-150% ROIThe highest ROI renovations are often the simplest. Fresh paint and updated flooring make a home feel new.
- • Interior paint: $3,000-$5,000 for a whole house, adds $5,000-$8,000 in perceived value
- • Hardwood refinishing: $3,000-$5,000 can make old floors look brand new
- • New carpet: $4,000-$6,000 in main areas makes a huge difference
- • LVP/Laminate: Modern, durable, and affordable flooring option
Curb Appeal
80-120% ROIFirst impressions matter. I've seen homes sit on the market for months, then sell quickly after simple curb appeal improvements.
- • Landscaping: $2,000-$5,000 for fresh mulch, plants, and cleanup
- • Front door: New door or fresh paint ($500-$2,000)
- • Exterior paint touch-ups: Fix peeling paint and trim
- • Driveway sealing: $500-$1,000 makes a big difference
- • Lighting: Updated exterior lights ($300-$800)
Lower ROI Renovations (Proceed with Caution)
These renovations can be great for your enjoyment, but don't expect to recover the full cost:
Swimming Pools
ROI: 20-40% - A $50,000 pool might add $15,000-$20,000 in value. In the GTA, pools can actually be a negative for some buyers (maintenance concerns). Only do this if you'll use it for years.
High-End Landscaping
ROI: 30-50% - Beautiful landscaping is great, but $20,000 in custom hardscaping might only add $8,000-$10,000. Basic landscaping delivers better ROI.
Basement Finishing
ROI: 50-70% - A finished basement costs $30,000-$50,000 but might only add $20,000-$30,000. However, it can help you sell faster, which has value beyond ROI.
Custom Built-Ins
ROI: 40-60% - Custom bookshelves, window seats, or entertainment centers are expensive and very personal. Future buyers might not value them the same way.
Remember: ROI Isn't Everything
If you're planning to stay in your home for 10+ years, do renovations that make you happy—even if ROI is lower. But if you're selling soon, focus on high-ROI improvements.
Real Example: A $750,000 Home in Oakville
I helped a client prepare their home for sale last year. Here's what we did and the results:
Renovation Plan
Results
Plus, the home sold in 8 days instead of sitting on the market for months. Time has value too.
GTA Market Considerations
The GTA market has specific characteristics that affect renovation ROI:
- →High property values: In expensive markets like Oakville and Burlington, buyers expect updated homes. Outdated properties sit longer and sell for less.
- →Competitive market: When multiple buyers are competing, a renovated home stands out. Small improvements can make the difference between multiple offers and no offers.
- →Neighborhood standards: In upscale areas, certain finishes are expected. A $1M home with laminate countertops will struggle compared to one with quartz.
- →Buyer expectations: GTA buyers are sophisticated. They notice details. Fresh paint, updated lighting, and modern finishes matter.
How I Help Clients Plan Renovations
When clients ask about renovations, here's my process:
- Understand your timeline: Are you selling in 6 months or staying 10 years? This changes everything.
- Assess your home's condition: What needs fixing vs. what would be nice to have?
- Compare to neighborhood comps: What have similar homes sold for? What condition were they in?
- Prioritize high-ROI improvements: Focus on what moves the needle, not what's trendy.
- Get realistic quotes: I help clients connect with reliable contractors and get accurate estimates.
- Calculate expected ROI: We look at comps to estimate value added vs. cost.
The goal isn't perfection—it's maximizing value for your specific situation and timeline.
Quick Wins Under $5,000
If you're on a budget or selling soon, these small improvements deliver big impact:
Deep Clean & Declutter ($500-$1,000)
Professional cleaning and staging can make a home feel 10 years newer.
Paint Front Door ($200-$500)
A fresh, modern color creates instant curb appeal.
Update Light Fixtures ($800-$2,000)
Modern lighting throughout makes a huge difference.
New Hardware ($300-$600)
Updated door handles, cabinet pulls, and faucets.
Landscaping Cleanup ($1,000-$2,000)
Mulch, trim bushes, add some plants.
Power Wash Exterior ($400-$800)
Makes siding, driveways, and walkways look new.
Ready to Plan Your Renovations?
Let's discuss which renovations make sense for your home, timeline, and budget. I'll help you prioritize improvements that maximize your return.