Remodeling Projects That Hurt Home Value
Remodeling is often a good idea if you are planning to sell your home. Buyers who want a move-in-ready home may be willing to pay to avoid demolition and construction work. That said, not all remodels are worth the investment. In other words, some projects recoup all of their costs, but many don’t. Before you decide to start a project that you hope will boost your home’s value, it is important to understand which projects won’t provide a good return on investment (ROI). Below is a look at remodeling projects that could hurt your home’s value.
Excessively Ornate Lighting
Some lights look good in the store, but that may not be optimal in the context of your home’s décor. You need to take everything else in the room into consideration when choosing a lighting solution. Also, nowhere are short-term trends more visible than in your choice of lighting; the more ornate and attention-getting your choice of lighting is, the more likely it is to be dated tomorrow. It doesn’t even have to look outdated to put buyers off. Lavish lighting tends to match a specific taste, which means that you are counting on buyers to share an aesthetic. Keep your lighting choices simple. Prospective buyers probably won’t be put off by lighting that doesn’t affect their impression of the room.
There are some good reasons to add another bathroom. Multiple kids, housemates, or regular guests can place a strain on the existing bathroom(s) and on relationships within the home. The problem with the bathroom addition is that it might not increase your home’s value compared to high upfront cost. The cost depends on where the bathroom is located as well as how many extras you want for it. For example, the cost of a bathroom added to existing space will be lower than one that requires a home expansion. An upstairs bathroom will have a higher cost than a downstairs one. A ceiling-mounted shower will be more expensive than a wall-mounted one. The addition of a downstairs half-bathroom within the home’s existing space might be an exception to the rule if the home is in dire need of an extra bathroom.
At first glance, adding some extra square footage by converting your garage seems to be a great idea. Everyone likes more space, right? Not necessarily, especially when it comes at the cost of a parking spot and storage space. In many places, not having a place to park can make it more difficult to sell a home. Many people don’t like parking their vehicles out in the elements. Aside from the lost parking space, garage conversions are often unpleasing when viewed from the exterior since they may not match the rest of the house. If a new homeowner wants to undo the remodel, this can be an expensive proposition. A converted garage is an expensive project that can hurt home value. A workable, more affordable alternative may be to avoid doing anything that would be difficult to undo. Smaller changes can turn the garage into usable space without making more permanent and costly changes. A new owner can quickly roll back those changes without spending too much money.
Pools or Hot Tubs
Swimming pools and hot tubs are among the luxury items that many people want for their dream homes. Unfortunately, not everyone has this requirement, which you may discover after having a pool or hot tub installed. Many buyers don’t want homes that come with the extra work, legal liabilities, and high insurance costs that owning these things will present. Having a pool excludes these people from the set of buyers who might be interested, thus making selling it harder. The cost of installing a pool and maintaining it according to a schedule can be exorbitant. The cost of repairing a pool is even higher. There are situations where a pool will add value, but these cases are highly dependent on location. If your neighbors have pools and you don’t, adding one may be worthwhile in that instance.
An Upscale Master Suite
A luxurious master suite might seem to be an excellent way to make a home more attractive to buyers. You might consider features like a larger closet and a bathroom, but these may not help you recoup the cost of the project. Master suite remodels can be very expensive, and not all buyers will be interested. The truth is that most people don’t spend that much time in their bedrooms. This is why a prospective buyer may not be attracted, even to a very nice one! This is why master suite remodeling is a project that can hurt home value. However, improving your master bedroom is not completely out of the question. If you plan to stay in the house for a while longer or if the homes in your neighborhood are similar to yours and you need something to set yours apart, a low-cost remodel may be worth it, but the financial benefit is not guaranteed.
What should you do?
Before you decide on a project, it is important to determine why you are doing it. If you are trying to improve the quality of life in your home and you plan to live in it for the foreseeable future, maybe the ROI shouldn’t be your priority. If you do want to sell your home and recoup the cost of your improvements, avoid the projects above since they will likely cause you to lose money. A good way to spruce up your home without costly upgrades is by enhancing your curb appeal.
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