Wise choice of bread
The first home renovation my husband and I made was the wall insulation of a 1921 Craftsman bungalow we lived in Columbus, Ohio. This project made the home much more comfortable in winter and summer, as existing insulation was the least expensive option available in the 1920s, making it completely unsuitable for keeping it warm in winter or cool in summer.
Unfortunately, despite an undeniable improvement in our comfort, we found that our new insulation did not affect our resale value. Even though we invested nearly $ 5,000 in work and materials into this renovation, we did not see the money and effort reflected in our selling price when we had to move a few years later.
Not all renovations will add to your resale value. This doesn’t necessarily mean that you should give up working on your home if you don’t see value when it’s time to sell. For example, I would definitely insulate this house again, even knowing that money will only improve my comfort.
But there are some home renovation projects that you simply cannot count on to recoup your investment. Knowing this, you should consider how long you are going to live in your home and whether you are renovating it just to add value to the home before starting any of these home improvement projects.
1. Invisible improvements
Insulating our bungalow was a subtle improvement that needed to be done but didn’t seem to change the home. Unlike “sexier” enhancements, such as updating a kitchen or bathroom, or even installing a new roof, invisible enhancements don’t change the look of your home. These are such things as re-gluing the yard so that water does not enter the basement, updating the heating, ventilation and air conditioning system, refueling bricks and chimneys, and replacing gutters.
While these improvements often have to be done to protect your home, the downside is that you won’t be able to recoup the cost of these improvements when it comes time to sell. It can be helpful to think of these renovation costs as a way to protect the present value of your home, rather than as a way to increase your future resale value.
2. Swimming pool.
While homeowners in Arizona, Florida, Hawaii, and Southern California may find that having a pool is a big advantage for their homes, this will not be the case nationwide. According to HomeAdvisor, the average cost to install a pool is over $ 27,000. This does not include annual maintenance costs of $ 500 to $ 4,000. It is these maintenance costs, as well as the work that homeowners will have to do themselves or contract to keep their pool clean, that will scare off many potential buyers. Add to that the additional insurance requirements that pool homeowners will have to purchase, and it becomes clear why many potential buyers would rather not invest in a pool home.
This is why you should only bear the cost of installing the pool if you really want to use it yourself and plan to stay in your home for at least five years. Otherwise, it might make sense to invest in a membership to your local pool.
3. Renovation of the bathroom and kitchen.
Renovating your bathroom and / or kitchen is a great way to add value to your home, right? Yes and no. Replacing dirty tiles and updating old appliances will definitely help your home shine for potential buyers, but there is such a thing as going overboard with a bathroom or kitchen remodel.
Specifically, if you add granite countertops, bespoke cabinets, stainless steel appliances, and ceramic tiles to your kitchen and bathroom, but the rest of the home is still a typical suburban home, potential buyers will see the home as a side job. -progress, not a home that feels ready to move in. Over-improving the bathroom and kitchen can lead buyers to think they shouldn’t try to bring the rest of the home in line with them. (See also: 9 Home Improvements to Always Negotiate)
4. Built-in high class electronics.
We can all dream of living in a George Jetson home where every possible electronic need is built in, but doing this kind of renovation can hurt your resale value.
There are several reasons for this. First, while your personal cinema (with a state-of-the-art remote control projector) may be exactly what you want from your home, a potential buyer might just see a room to be demolished and remodeled as soon as Technology is advancing at breakneck speed, so your cutting-edge electronics will soon look dated, like fleecy rugs or gold-collecting refrigerators.
If you need or need high-end built-in electronics in your home, make sure you install them for your own enjoyment and comfort, because they are unlikely to be appreciated by the buyer either.
5. Extravagant landscaping.
Improving your terrain requires a gentle touch. On the one hand, landscaping is often touted as an important aspect of curb appeal, and making sure your yard and garden looks inviting and welcoming is definitely a great way to attract potential buyers.
On the other hand, carefully crafted landscaping rework can scare buyers away. Those with black fingers may look at your expansive flowering garden with sculpted bushes and a pond and decide that they cannot support it, and those who really love the garden may not like your vision and want to start over. …
If recreating the gardens of Versailles is how you make your home feel like home, then there is nothing wrong with investing in such renovations. But make sure you’re doing this work for yourself, not because you’re hoping to get your money back when you’re ready to sell. (See also: 14 Ways To Make Your Yard Amazing For Under $ 100)
Repair for the right reasons
While many experts focus on resale value as a decisive factor in deciding whether to improve a home, it is important to remember that you live in your house now. Deciding what home renovation to work on based on the fact that someone else may like it, so lies the madness.
When you are improving your home, make sure you take into account your own comfort, your plans for living in the home, and the potential resale value. They all matter.