Renovations that add value — and the ones that don’t
Cosmetic kitchen and bathroom updates typically give the best returns. Structural systems, squeezed bathrooms and amateur DIY often do not increase resale value.
Copy link
By Torontoer Staff
In the current housing market, targeted cosmetic upgrades deliver the best returns. Buyers with limited renovation budgets favour homes that look updated and move-in ready, so sellers should prioritise visible finishes over major systems work.
Realtors and renovators in the Toronto area point to kitchens, primary bathrooms and flooring as the most effective places to spend money. Conversely, adding awkward small bathrooms, investing heavily in mechanical systems, or leaving obvious DIY work can reduce appeal.
High-impact, cost-effective upgrades
Focus on jobs that change how a buyer experiences a room without requiring a full gut. Simple, well-executed improvements are more likely to influence offers than expensive, behind-the-walls upgrades.
Counters and backsplash
Replacing worn countertops and a dated backsplash is one of the quickest ways to modernise a kitchen. Renovator Brendan Charters estimates a basic update can start around $5,000, mid-range work about $15,000, and high-end replacements near $20,000. Buyers often treat a refreshed kitchen as if it were newly renovated, which can be far less costly than a full kitchen rebuild.
Primary bathroom and bedroom
Work on the primary suite, especially the main bathroom, tends to return the most value. Broker Mike Heddle says renovations to the primary bathroom can yield an 85 to 90 percent return on investment when done well. Small changes such as new faucets, a toilet, and regrouting can cost around $4,000 and make an older bathroom feel fresh.
You’re going to appeal to buyers in today’s marketplace that don’t have additional cash to do renovations.
Mike Heddle, Royal LePage State Realty
Islands, breakfast bars and flooring
Adding an island or breakfast bar can transform a kitchen into a social hub and increase perceived living space, provided there is room to do it without crowding circulation. New flooring updates the look across the whole home. Quality floor materials typically run $12 to $18 per square foot, more if adhesive installation is used to improve sound and feel.
Renovations to avoid or approach with caution
Certain projects either add little value or actively harm a listing. Sellers should be cautious about work that creates awkward layouts, appeals to a narrow buyer segment, or appears unfinished.
Cramped, poorly located bathrooms
Trying to squeeze a small two-piece washroom into a main-floor space near the kitchen often backfires. Broker Tim Syrianos calls those installs a 'no-no' when they feel cramped or sit in an awkward location. Such additions can detract from flow and deter buyers.
Trying to squeeze a two piece on the main floor, in some cases near the kitchen, it’s a no-no.
Tim Syrianos, RE/MAX Ultimate Realty
Systems and major mechanical work
Replacing roofs, furnaces or boilers is sensible for homeowners but rarely excites buyers. Renovators and brokers say these upgrades are frequently discounted in valuations. Heddle estimates a new roof might only recoup roughly half its cost at sale, because buyers expect such systems to be functional but not necessarily new.
DIY work, pools and landscaping
Do-it-yourself work that looks amateur will often hurt resale rather than help. Buyers may assume a botched job needs to be removed and redone, which reduces perceived value. If you cannot deliver professional finishes, hire a pro.
Outdoor projects and pools can be polarising. Heddle notes roughly one third of buyers actively seek a pool, one third will not consider a home with one, and one third are indifferent. Landscaping is similarly subjective and hard to quantify for return on investment. If you install a pool, plan it for personal enjoyment, not as a guaranteed method to boost resale value.
- Prioritise visible finishes in kitchens and primary bathrooms.
- Choose neutral, durable materials that appeal to a wide range of buyers.
- Avoid awkward small bathrooms in poor locations.
- Don’t expect full cost recovery on roofs or major mechanical replacements.
- Hire professionals for work that will be inspected closely by buyers.
For sellers in a market where buyers are price-sensitive, small, well-executed cosmetic projects tend to deliver the best results. Focus on clean, contemporary finishes and professional workmanship, and treat larger mechanical or niche lifestyle projects as homeowner choices rather than guaranteed value-adds.
home renovationreal estatekitchenbathroomhome improvement
