Your home is your castle, so of course you want it to reflect your personality and preferences.
If you’re a movie buff, a lavish home theatre with surround-sound might be a tempting addition to your basement. Are you passionate about cooking? A complete kitchen remodel that transforms the space into an enviable chef’s haven may be in order. And after you make these pricey renovations, you can expect to earn back the money you invested in them when you sell your house, right? Not necessarily. All remodeling projects are not created equal, and some will do more to enhance your home’s appeal to potential buyers than others.
Play it smart by learning what home renovation projects to avoid.
If you want to reap the biggest return on investment, start by doing your homework. For example, a recent article from Forbes revealed that the biggest mistake sellers make when renovating is choosing projects that don’t provide any value or benefit to the future homeowner. These highly-personalized projects are best avoided. Your awesome home beer-brewing station may be near and dear to your heart, but chances are, few buyers will share that passion. Anything too personalized or customized can be a real turn-off, especially if it means they’ll need to perform an additional renovation to remove it.
Envisioning ways to use the space that will hold maximum appeal for future buyers is usually the best way to go.
Here are seven home renovations that may not help your resale value as much as you’d expect:
- Eliminating bedrooms. When it comes to long-term value, making major changes to the layout of your home is a gamble. One design trend that has dominated in recent years is creating an expansive master suite from two smaller bedrooms. While that sounds like a good idea, if buyers require a certain number of bedrooms, your house will be out of the running. In terms of resale value, it's better to have as many designated bedrooms as possible.
- Getting rid of every bathtub. Although large, well-appointed showers have recently replaced soaking tubs in luxury bathroom renovations, removing every tub in your home can detract some potential buyers. For example, families with small children will most likely want a bathtub for safety reasons. Tubs also provide flexibility and offer therapeutic advantages over showers. Be sure to consider your neighborhood demographics. If they skew middle-age or younger, it’s best to keep at least one tub in place.
- Drastic customizations. Hand-painted murals, alternative wall coverings like velvet and textures, and lavish fixtures made from expensive materials are examples of cosmetic renovations that aren’t likely to translate into resale value. Because they’re so reflective of personal tastes, it’s unlikely that they’ll hold the same appeal for the next homeowner.
- Over-the-top renovations that don’t fit your neighborhood. Adding a posh luxury kitchen in a community of $300,000 homes doesn’t mean your place will sell for $500,000. Buyers with a larger budget probably aren’t shopping there, and those seeking a more affordable home will probably be turned off by the high price tag.
- Installing a swimming pool. Unless you live in a warm-weather state, backyard pools tend to be bad home renovation investments. According to U.S. News and World Reports, the average in-ground pools costs nearly $45,000 to install in the mid-Atlantic, and that doesn’t factor in the ongoing expenses associated with regular maintenance and higher insurance premiums. Many people see pools as a safety hazard, and others just consider them a nuisance. In essence, they eliminate more buyers than they attract. So, while that swimming pool may be fun for you and your family, don’t expect it to add your home’s resale value.
- Overdoing the bathroom remodel. Given the sheer number of appealing but extravagant enticements available for upscale bathroom remodels, it’s easy to see how one could get carried away. Whirlpools, fireplaces, waterfall showers and exorbitantly expensive imported tile may beckon you. But the more you pursue your swanky restroom retreat, the greater the odds become that it won’t suit the tastes of cost-conscious buyers.
7.Adding a sunroom. A sunroom can be a great space to enjoy the outdoors away from the elements, but it can be among the worst home renovation projects in terms of return on investment. According to Remodeling, a sunroom addition can cost anywhere from $40,000 and $70,000, making it one of the most expensive residential upgrades. Think carefully about how often you’ll actually use a sunroom before committing to this costly home renovation.
Spending a lot of money on renovations doesn’t necessarily mean your house will be worth more. It’s best to think strategically about how you can maximize your home’s value while minimizing your investment in it. If you need additional resources to help with your cash flow, please reach out to our knowledgeable professionals today.
About FAI Wealth Management, Inc.: Located in Columbia, Maryland, FAI focuses on helping clients create the financial future they desire by protecting their wealth, making the most of their assets, and planning for life's uncertainties. The firm combines fee-only, fiduciary-driven guidance with highly personalized, consultative financial planning and investment services that enable individuals, families, and businesses to navigate complex life transitions. Founded in 1987, FAI currently manages more than $350 million in client assets nationwide. For more information about FAI Wealth Management, please visit the website at https://www.faiwealth.com or call 410.715.9200.