If you own a home, you know that “home improvement” is an ongoing process. It seems like there’s always something that needs to be updated, repaired or remodeled – and this is especially true if you’re thinking ahead about the resale value of your home.
However, not all home improvements yield a good return on investment (ROI). Some can even detract from the home’s value and make it harder to find a buyer.
If you’re wanting to get a lot of “bang for your buck” out of your home improvement projects, you need to keep an eye on those that will provide a positive return on the investment that you are making once they’re done – and avoid the rest. If you’re considering renovations with an eye toward resale, here are some that are better left off your list:
1. Over-the-Top Luxury Upgrades
You can accidentally turn your home into an anomaly for the neighborhood by adding too many exotic or expensive touches. Consider, for example:
High-end appliances in a modest home: Installing top-of-the-line kitchen appliances in a home that is otherwise modest or mid-range can create an imbalance. Buyers might question the investment when the rest of the home doesn’t match the luxury level.
Exotic materials and finishes: Using high-end, exotic materials like rare marble or custom woodwork might not always align with the overall market or neighborhood vibe.
Luxury items can be highly personalized – and their appeal is often subjective. Potential buyers might not see the same value that you see in these kinds of upscale upgrades, especially if they are overpowered by the home’s other features and the neighborhood doesn’t tend to attract luxury-minded homebuyers. These projects usually have a lower ROI when they don’t quite align with what the majority of buyers in that particular real estate market want or need.
2. Extensive Landscaping and Garden Features
You want your home to have significant curb appeal because would-be buyers often won’t give a place a second glance if the yard looks neglected. However, you must be wary of going overboard with things like:
Elaborate waterfalls and koi ponds: Installing elaborate outdoor features such as large water features or koi ponds can be costly and require a significant amount of care. Buyers may see these and think they’re lovely and romantic but inherently realize they don’t have the money or time to manage their upkeep.
Highly specialized gardens: Gardens designed with specific plants or themes that require high maintenance can be beautiful – but might not be practical for the average homeowner. That could narrow the market of your potential buyers.
While well-maintained landscaping can improve curb appeal and add value to your home, most people prefer a fairly neutral or low-maintenance outdoor space that’s functional and easy for the homeowners to keep up with. That means that the money spent on intricate landscaping that’s largely for show might not translate into increased home value (and could potentially be a detractor to many buyers).
3. Over-personalized hobby spaces
You want your home to reflect your personal taste and passions – but not at the expense of its value. Some things are absolutely worth the money if you’re in your home for the long haul, but not so practical if you’re just planning on being there for a few years. These include things like:
Home theaters with custom features: While a home theater can be a great addition, overly customized or high-tech systems may not appeal to everyone and can be seen as a wasted investment. You may be better off installing a more generalized “family room” or “entertainment room,” instead.
Specialty rooms: Rooms designed for highly specific purposes, such as a professional-grade craft room, a huge solarium for your plants or a lavish home gym, might appeal to your special interest – but not the average homebuyer.
Again, this is where you should carefully consider whether you’re investing money in something that enhances the home’s value to you versus something that improves its value on the open market. There’s nothing wrong with having niche interests – but you definitely want to recognize the fact that not everybody shares your enthusiasm.
4. DIY Projects Gone Wrong
Are you thinking about doing some major renovations on your own? Think again. Unless you have the tools, time and skillset to do the job like a pro, you could end up costing yourself money when the home goes up for resale. Buyers don’t like:
Poorly done renovations: DIY renovations that are not professionally executed can leave buyers trying to calculate how much it will cost them to have the work redone – and they will try to reduce their offer on a home accordingly. Poor craftsmanship, safety concerns and code compliance issues are a big problem.
Unfinished projects: Starting a project and not completing it can leave your home in a state of disarray, potentially lowering its value – and many homeowners fail to appreciate how much time a DIY project will take.
DIY projects that are not done – or not done well – can heavily diminish your home’s value. Make sure that you hire a contractor who is experienced, licensed and bonded for anything that requires more than basic repair skills.
5. Converting Functional Spaces into Living Areas
On the surface, it may seem like adding more “living space” to your home is always a good idea – but that may not be true if you end up eliminating one of your home’s useful (and coveted) features. For example:
Garage conversions: Turning a garage into a living space can lead to reduced storage space and might not be as appealing to buyers who need the garage for its intended use. Others may find the whole idea strange or tacky and turn away because of it.
Basement/Attic conversions: Similar to garages, converting basements or attics into living areas can sometimes compromise the functionality of these spaces or lead to issues with insulation and ventilation. This is especially true if the “living space” ends up seeming cramped or uncomfortable.
Conversions like these often sacrifice the practical, everyday uses people appreciate in these areas, and potential buyers might be disappointed.
6. Overly Trendy Interior Design Elements
Finally, even though you want to avoid letting your home’s interior design grow “dated,” you should also be cautious about embracing every new trend. The cost of the upgrades often far exceeds the ROI, especially with:
High-end fixtures and fittings: Installing very expensive fixtures like custom lighting, elaborate ceiling designs and expensive window treatments may not provide a proportional increase in your home’s value.
Overly trendy decor: Interior design choices that are very trendy or specific to a particular era can quickly become outdated – especially when they’re “extreme,” Examples include the chrome-and-glass minimalism or the over-the-top maximalism looks that you see in magazines. These can be seen as attractive, but not particularly “livable” for most people.
Excessive remodeling that focuses on flashy trends or high-end additions often does not offer the same ROI as more neutral, timeless updates. Trends can change rapidly, and what seems cutting-edge now might not have the same appeal in even a year or two.
Ultimately, if you’re planning on living in your home for decades to come, you may prioritize the added comfort, usefulness or style of an update over its ROI – but if you expect to sell your home in a few years or are making updates just for that purpose, it’s wise to steer clear of the ones listed above.
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