It could be a great idea to upgrade certain aspects of your home, just make sure you’re choosing the upgrades that are worth the investment. If you want to add real resale value to your home, don’t waste your money doing these.
Improving too much
One of the first resources realtors use to determine the value of your home is the neighborhood you live in and the homes in it. “If you improve your home too much, in any area, you may price your home outside of the neighborhood you live in,” warns Ryan Fitzgerald, owner/broker of Uphomes. A large or expensive remodel that doesn’t make sense in your neighborhood won’t match up with the price per square foot with neighboring homes. “You may find you’re priced well outside the neighborhood price range,” says Fitzgerald.
Design and fixtures
A farmhouse style kitchen tricked out with fixtures, shiplap, and subway tile may be your design dream come true, but if the rest of the house has gold fixtures and shag carpet, it’s a home upgrade that doesn’t add value. “If you go from modern brushed nickel fixtures in one room and then walk into a room full of gold fixtures, your home is going to feel inconsistent to the buyers. Keep your fixtures and designs consistent,” suggests Fitzgerald.
Upgraded home maintenance
Replacing an HVAC system, water heater, or roof can be standard home upgrades for most homeowners, but with regard to resale, don’t get too excited about regaining much of your investment. “Buyers will view these improvements as necessary for the home to function properly and assume the reason you made the purchase is that you received full use of the old one,” says Fitzgerald.
Upscale deck
All those weekend trips to Home Depot buying woods, nails, and stain for your DIY home upgrade produced an expansive deck to be envied —just don’t expect to recoup the cost of a composite or upscale deck, because the market isn’t demanding it, warns Fitzgerald. Don’t worry, you could make worse mistakes like these stupid things people have done to their homes.
Extensive landscaping
A beautifully landscaped yard is pretty to look at but don’t expect a lot of green to come back your way. “If you’re paying for extensive landscaping such as fountains, or rock walls, don’t expect buyers to pay for it,” says Fitzgerald. You may enjoy hours toiling in the soil and tending to your koi fish but potential buyers see a lot weeding, watering, and maintenance.
Swimming pools
“One of the biggest misconceptions in real estate is that by adding a pool your home’s value will increase,” says Fitzgerald. In-ground pools and above-ground pools are expensive and require time and money to maintain and insure, not to mention additional safety measures to consider if you have young children. “If you’re going to add a pool do it for pleasure, not for resale value. Many folks will never recoup the cost of the pool when they sell their home,” Fitzgerald says.
DIY project fails
“You may think you’re saving money by doing projects yourself instead of paying a professional to do it, but not when it comes time to sell,” cautions Fitzgerald. Buyers scrutinize the small stuff. “One of the first things buyers notice is the craftsmanship, especially if things aren’t done correctly. The few bucks you might save doing it yourself may end up costing you thousands in the sale,” says Fitzgerald.
Sun rooms
“A sun room addition may seem like a beautiful investment into your home, but proceed with caution,” warns Mary Ann Graboyes, a real estate agent with Weichert Realtors® Blue Bell, Pennsylvania. It does provide that coveted square footage everyone wants but your taxes may increase. Plus, a sun room can take away from yard space, which may be a negative thing for some buyers.
Murals and wallpaper
Painting murals or adding some wallpaper to a dull wall may seem like a cheap home upgrade, but it’a not the best way to invest your money according to Graboyes. Removing wallpaper or painting over murals can be expensive and difficult. Potential buyers often have a hard time seeing past them. Here’s how to create a stunning color scheme in your home.
Back-up generator
Unless you’re in a rural area or a location that experiences power outages, a back-up generator isn’t going to wow the socks off home buyers. Graboyes says this home upgrade is pricey and but doesn’t generate a lot of cash for the $10,000 to $20,000 investment you make.
Specialty built-ins
Built-in fish aquariums and hot tubs are unique items that may deliver personal joy, but they also require a lot of maintenance and may not tickle a buyer’s fancy. “More often in real estate transactions, a specialty built-in becomes a hindrance to the sales opportunity,” says Graboyes.
Garage or gym?
Your commitment to fitness is stellar but converting your garage into a gym is more an exercise of sweat equity than home upgrade value. “Most buyers want their garage available for cars, not gym equipment. Before finishing a garage with gym equipment, flooring, and electric, plumbing, and heating, take your gym to the attic or basement,” advises Graboyes.
Personal and custom renovations
Your home should reflect who you are, but if you’re not going to live there forever and plan to sell it someday, steer clear of personal and custom renovations, like a yoga and meditation studio or a wine cellar. “Buyers are looking at the home as their own and they do not want to have to do more renovations. Keep your renovations clean and simple,” recommends Justin Krzyston, contractor, designer, and owner of Stonehurst Construction.
High-end upgrades
Sauna, steam showers, and heated floors and towel bars are creature comforts we love, but usually, it’s money down the drain for these home upgrades. “Unfortunately they won’t bring back money when you go to sell your home. These upgrades are costly and a little too personal to the current homeowner,” says Krzyston. Don’t worry, there are cheaper home repairs that anyone can do.
Over the top tech
Expensive sound systems, high-end pool lights, or showy DIY home upgrades like LED shower heads and toilets aren’t likely to add any real value to your home. “They are fun upgrades, but they are so costly to install and won’t add a significant resale value,” says Krzyston.
