Some people choose to make home improvements with the intention of increasing the home’s selling value. Maybe with certain projects like adding a cozy family room or some other functional spaces may do, but to some other projects, they really don’t. And they just may allow little opportunity to recover the costs when it’s time to sell. Sellers should be more careful with how they choose to spend their money if they want their investment to pay off. Here are six things that you think can add value to your home, but they are really not.
Having a swimming pool is really nice because you can get to enjoy it most especially if you have guests to accommodate in your own home, but it can really be a hassle to maintain. Many potential home buyers view these pools as dangerous, expensive to maintain and a lawsuit waiting to happen. Buyers may turned down by a perfect house just because of the pool, since they have young children that might go in unsupervised and unfortunately drown. They might just have to get a contingency to dismantle or fill it up, and it may cost you a lot more. Installing a pool may cost anywhere from $10,000 to more than $100,000, and consider the additional yearly maintenance expenses altogether may cost you a significant amount of money that might never return.
Overbuilding for the Neighborhood
When you’re property sits on a one-story home neighborhood, do not try to attempt adding another story and unintentionally make the home fall outside of the norm. This might make the home more appealing but it will not add significantly to the resale value. Consider the average sales price in the neighborhood, even if your property looks desirable but seems overpriced, they won’t pay for that at all. They’ll instead go to the same priced property in the more suitable neighborhood.
Improving with a beautiful yard may be appreciated and encourage home buyers to check out the home, but don’t expect it to add value. But it will not get the attention of the buyer if they are unwilling to put an effort in maintaining a garden or hire a qualified gardener, so as a result, buyers may view it as a burden and not an advantage.
Upgrades should be consistent to maintain a similar style and quality throughout the home. Even if a part of the home is beautifully remodeled but the upgrade is inconsistent with the rest, it might not get a high return. High quality upgrades generally increase the value of high-end homes, but not for mid-range ones. Chances are, even with high-end features such as media rooms with specialized audio, visual or gaming equipment may be appealing to few potential buyers, some of them would not consider paying more for these additional features.
Carpeting is expensive to purchase and install. Also, there’s a growing concern over the amount of chemicals used in its processing and the potential for an allergic reaction most especially with children around. Even the color of the carpet might not attract the potential buyer’s attention if they have something else in mind. And because of these complications, removing carpeting and restoring wood floors is usually a more profitable investment.
Costly projects like a new plumbing system or HVAC unit (heating, venting and air conditioning) might be necessary, but do not expect to recover the costs and considered as invisible improvements when it’s time to sell. It will make your house a better place to live in, but nobody will seem to notice because they expect these systems to be in good working order and will not pay extra for a new one. These may be better in terms of regular maintenance, but not as an investment in your home’s value.
Overall, just imagine spending thousands of dollars on a home improvement project but get nothing in return. It will all just depend on the local market, and the age and style of the house. Almost any project has the potential to negatively affect resale value. A general rule is that the more personal your choices are — meaning they’re made to suit your particular lifestyle or taste — the less likely they are to have a positive effect on resale value. This doesn’t mean you shouldn’t do the project. It just means you shouldn’t expect it to add value to your home and should anticipate that your home may be more difficult to sell.
Source: forbes.com, nolo.com, taazza.com
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