I have been on a house-hunting expedition for the past two years, and with about 15 properties viewed to date, one thing I can say for certain is that every place is different. What might have been emphasised as a feature or highlight on a real estate sales brochure has rarely been a true “highlight”; more often, it’s been a lowlight or a renovation waiting to happen.

I have quite a number of friends who are realtors, and they often say to us, “Look, you can renovate this”, “Knock this wall out to make it larger”, or “Perhaps the kitchen or bathroom could be upgraded to make it more modern”. They keep telling us we should bite the bullet, buy something we see “potential” in, and renovate it to suit our specifications.

So, with that in mind, and based on a bit of research and guidance from my realtor friends, here is a list of top renovations that could potentially add value to your home:

1, Kitchen remodel

Updating your kitchen with modern appliances, cabinets, countertops, and fixtures can provide one of the highest returns on investment. Aim for a balance between updated aesthetics and functionality.

2, Bathroom upgrade

Renovating a bathroom, especially if it’s outdated, can greatly enhance value. Consider adding new fixtures, a modern vanity, and improved lighting. Master bathrooms with double sinks and good storage are particularly appealing.

3, Curb appeal enhancements

Improving the exterior of your home – such as landscaping, a new front door, or fresh paint – can create a strong first impression. Well-maintained gardens, walkways, and driveways are essential.

4, Energy efficiency improvements

Upgrading windows to energy-efficient models or installing energy-efficient water pumps can appeal to eco-conscious buyers and reduce utility costs.

5, Outdoor living spaces

Decks, patios, and outdoor kitchens are increasingly popular as they expand living space and enhance usability for entertaining and relaxation.

6, Flooring upgrades

Replacing worn-out carpets with hardwood, laminate, or tile can improve the home’s aesthetics and appeal. High-quality flooring can also add a touch of luxury.

7, Fresh paint

A fresh coat of paint in neutral colours can modernise a space and make it feel clean and inviting. This affordable upgrade can significantly enhance your home’s overall look.

8, Additional bedroom

If space allows, adding a bedroom can appeal to families seeking more room. Converting a den or office into a bedroom can also be an effective way to create additional sleeping areas.

When considering home renovations, it is crucial to evaluate the cost versus the potential return on investment, as well as the preferences of buyers in your specific market.

On the other side of the coin, however, all my realtor friends have advised caution when renovating, stating if you plan to renovate make sure it will add value, as they have seen in the past a lot of money can be spent on updates that add no value and, in some cases, can even devalue a home in certain markets.

Here is some of the advice I was given on potential pitfalls:

1, Overly personal customisation

One of the biggest pitfalls in home renovations is personalising spaces to the extent that they reflect only your taste. This includes bold colour choices, specialised layouts, or excessive use of niche materials.

Suggestion: stick to neutral palettes and universally appealing designs that attract a wider audience.

2, Overbuilding for the street or in a small neighbourhood

Building an extravagant home on a street or in a small neighbourhood of modest homes is a common mistake. If your renovations make your property the most expensive on the block, you run a high risk of devaluing it.

Suggestion: consider the average home price in your area and ensure your renovations align with neighbourhood standards.

3, Removing a bedroom

Most homebuyers seek properties with adequate space, and the number of bedrooms is a key measure. Eliminating a bedroom to create a larger living space or home office might appeal to you, but it can deter buyers who need that extra room. In many markets, each additional bedroom can significantly increase a home’s value.

Suggestion: maintain or enhance bedroom numbers rather than reduce them.

4, Inconsistent upgrades

While updating certain areas of your home can enhance its appeal, inconsistent renovations can create a disjointed feeling and often devalue the property. For example, modernising your kitchen while leaving the bathroom outdated may cause buyers to overlook the beautiful kitchen, as they will still need to invest in fixing the bathroom.

Suggestion: aim for cohesive renovations throughout your home to maintain a balanced appeal.

5, High-end upgrades in non-essential areas

Investing in luxury materials or appliances can be tempting, but they might not yield a good return in less critical areas. For example, installing a top-of-the-line sound system in the garage or workshop may seem excessive to buyers.

Suggestion: focus high-end upgrades on key areas like the kitchen or bathrooms for a better return.

6, DIY gone wrong

While DIY projects can save money, poorly executed renovations can significantly devalue a home. Homebuyers often notice shoddy workmanship, and if a DIY job is done carelessly, it raises concerns about what else might be wrong that they “can’t see”. Issues like improper tiling, uneven walls, or poor paintwork can be major red flags.

Suggestion: if you're not confident in your abilities, hire a professional to ensure quality work.

7, Oversized changes to outdoor space

Outdoor renovations can offer excellent returns, but drastically altering your yard may have the opposite effect. For instance, installing an oversized pool or elaborate landscaping might not appeal to every buyer. Many people prefer manageable yards with minimal upkeep.

Suggestion: create a versatile outdoor space that allows for personal touches rather than overloading it with specialised features.

8, Unconventional bathroom layouts

Bathrooms are a primary focal point in home evaluations, and an unconventional or impractical layout can lower your property value. Open bathrooms, while trendy, may detract from the sense of privacy that many potential buyers value.

Suggestion: stick to standard bathroom layouts, which tend to have broader buyer appeal.

At the end of the day, if you’re going to invest time and effort into renovating, make sure it delivers long-term rewards!

• Carla Seely has 24 years of experience in the international financial services, wealth management and insurance industries. During her career, she has obtained several investment licences through the Canadian Securities Institute. She holds the ACSI certification through the Chartered Institute for Securities and Investments (UK), the QAFP designation through FP Canada, and the AINS designation through The Institutes. She also holds a master’s degree in business and management