Enhancements that Can Reduce Your Home’s Value
A lot of homeowners think that the home improvements they invest in will boost the value of their property. Well-designed and implemented projects can certainly do that, enabling you to enjoy your home more and increasing its value, but some remodels and renovations can have the opposite effect and could in fact lower the desirability and value of your home.
Don’t Outbuild the Neighborhood
While it’s a good idea to build an addition, avoid the mistake of making your home too expensive for your neighborhood. Large and costly projects like adding an extra bathroom and multiple bedrooms can make the price of your house soar above the average value of homes in your area. This means in a $200,000 locality, buyers will ignore your home if it costs, say $380,000. This will make it difficult for you to recoup the money you invested in the additions.
Luxury Room Installations
Sunroom – Industry stats reveal that including a sunroom gives negligible return. It is an expensive remodel that makes sense only in regions that have year-round warm weather. Therefore, a sunroom is not valuable in the northern and Midwest states. Plus, only a heated sunroom is considered while computing a home’s square footage.
Bathrooms – Remodeling of bathrooms is a smart way to raise your home’s value. However, make sure to use upgrades that appeal to a variety of tastes. Avoid deep soaker tubs, waterfall showers, whirlpool baths and fireplaces as these aren’t very popular. If another bathroom in your home has a tub, considering installing a big walk-in shower in the master bath.
Expensive kitchens – It is costly to remodel and replace your existing kitchen. A lot of homeowners don’t hesitate to spend six figures to create their desired kitchen. Keep in mind that this renovation’s addition to the home’s resale value will be typically less than the cost of the kitchen upgrade. Therefore, don’t opt for a brand new kitchen, but simply replace outdated or worn parts and select moderately priced appliances over the most expensive ones.
A recent trend is to choose hard floors instead of carpeting. Hardwood floors can boost your home’s value. Use carpeting only in the bedrooms and not other places. Buyers favor durable hardwood floors that can look exquisite for decades. Avoid laminate flooring as it looks cheap and can reduce your property’s value. Choose tiles smartly and avoid funky-fun types that might repel buyers. Go for “mainstream” tile types to be safe.
Don’t Reduce the Number of Bedrooms
Most buyers prefer more bedrooms. Don’t make the mistake of creating a master suite by combing two small bedrooms. This is because you will be offering only two bedrooms while the other homes in your neighborhood have three. Also, avoid converting a smaller bedroom into a big closet as buyers with families tend to prefer more bedrooms.
Correct the Personal Touches before Selling
You might have made decorating choices to make your home more appealing to yourself and your family in the past, however, you may need to neutralize these changes before selling your house. For instance, bright-colored paint or lots of wallpaper can turn off buyers. Plus, a lot of purchasers prefer wooden trim only in white and not any other color.
Expensive light fixtures can be another minus point. Rooms that have themes like a fairy tale or jungle could also be potential turn-offs. If you need these things for your personal taste, invest in the decorations while you stay in the house. But you’d need to change them when you put up your property for sale and will not recoup the invested money.
Other Additions that May not Be Liked by Potential Buyers
Inbuilt fish tank – You might love your aquarium for its entertainment value and beauty. However, a lot of buyers don’t want to be saddled with the responsibility of managing an inbuilt fish tank. It needs to be properly maintained and its installation and removal are expensive.
Home theaters – Not everyone may prefer home theaters. Some buyers may consider it a waste of electricity and space. It is also expensive to convert it back to an unused room, especially if there is inbuilt electronics.
Hot tub – Hot tubs need a lot of cleaning and upkeep, so many people don’t use them. Plus, swimming pools and hot tubs are used more in the Sun Belt areas, and much less in the northern regions.
Swimming pool – Though your family may have used the pool for fun, many buyers might view it as a safety danger, and a hassle. Like hot tubs, a pool needs regular upkeep and maintenance, and increases your insurance cost. A lot of buyers stipulate in their contract that the present owner should remove the swimming pool before completing the sale. Installing a pool is expensive, but offers little value addition to the home.
To sum up, utilize common sense in making remodeling decisions. You can make the renovations you like if you plan to reside in your home for a long time. But if you wish to sell it in the near future, consider your renovation decisions carefully. Keep any changes mainstream to be on the safe side and be prepared to make more alterations to make your home ready for sale.