Are you thinking of renovating your home for the purposes of selling? Are you interested to understand what kind of return you can expect on your investment (ROI)?

We get these types of questions all the time from prospective clients as well as the realtors that represent them.

Alair Homes Forest Hill Toronto recently partnered with a boutique real estate firm in Toronto’s east end, to pull together some fascinating figures about renovating and selling.

We surveyed 31 homes in North and South Riverdale, the Beaches, and Danforth Village and found the following results.

Purchase Price vs. Selling Price

While homes raged from two to three storeys, the average home was purchased for $765,250 and later sold for more than $1.4 million (that’s an average gain of more than $600,000!)

Type of Renovations

The renovations ranged from minor renovations ($189,875) to full remodels and additions ($953,539), and some renovated and sold immediately (4 months) others held their investment for a little longer (up to 24 months).

Renovation’s ROI

The average seller profited just shy of $200,000 which represents a return of investment of 56% which compared to your typical savings account of 2% is incredible! Even the smallest return was more than triple your high interest savings account would yield.

The amount of the investment didn’t directly correlate to the profit or ROI. One of the highest ROIs came from a quick 4 month renovation where the home owner spent a modest $238,960 and made a whopping 102% ROI (profit was $243,790).