Not every home improvement adds value and there even are renovations that hurt home value. Upgrading your house according to your taste and needs may seem like a great thing to do. But, it is wise to know the impact. We will show you several renovations that hurt home value. This way, as you make decisions in your home, you can do things that bring you enjoyment and add financial worth.
Why is it Important?
It is important to understand the impact of home improvement. After all, your home is a large investment. Even if you aren’t planning on selling your home, you want to retain as much equity as possible. But, if you plan to sell your home at some point, it is especially important to think about the worth of every update you make. You’ll try to look at whether the project will pay off or be detrimental to resale value. Some home improvements can force you to lower down your asking price. Discuss the potential financial impact of a renovation with an expert so you do not make any misinformed choices.
#1 Decreasing the Number of Bedrooms to Create More Space
Having more bedrooms is better than having bigger ones! This factor can make or break a sale. Property prices are often compared in terms of the number of bedrooms it possesses. Even if you have small bedrooms, they offer a private and usable space. An extra room can also be used as a guest room or a storage space which is far more useful than having two or three big rooms. So if you are thinking of knocking down a wall to create more space, do not make the blunder, especially if you have a smaller house. The extra space you are trying to create may seem like a waste to others.
#2 Getting Rid of Closets
People need closets for practical reasons. It is a need and getting them out of a room to create space for a luxurious washroom or bedroom will be a mistake that you will regret. It will decrease the home’s resale value dramatically. A bedroom without a closet doesn’t seem very useful because there are all sorts of things you need to store in a closet which cannot be left cluttered in the room. And rushing in and out of rooms to get stuff will be very inconvenient.
#3 A Swimming Pool
It is an expensive upgrade and if you do not plan to live in the house for long then hold on to your desire to have one. A pool is not going to be a selling point. In fact, it may become a liability as people usually do not want to take up the hassle of having to maintain a pool or to deal with any insurance issues. It may on the contrary turn away buyers with children who may consider it dangerous.
#4 A Top Quality Kitchen
It may be your wish to have a world-class kitchen, but when it comes to selling, you may be wasting money where it is not needed. Don’t splurge on professional-grade appliances as it won’t guarantee that you will get the money back when you sell it. And the prospective buyers may not even need those high-end appliances, so be smart about how much you spend on these. Marble countertops in the kitchen may look fantastic, but again it is an expensive investment that does nothing to add to the home value. In fact, some buyers may not want to go for it because it is high maintenance. Having an up-to-date kitchen can build value, just don’t go overboard.
#5 A Luxury Bathroom
Just like a top class kitchen, a high end bathroom will also not be a smart renovation idea if you plan to resell your home. It may not add value in proportion to the cost. The extravagant tub you got installed may be your favorite, but buyers may think of it as a waste of space. They might not be willing to pay extra for something they do not need.
Do not invest in getting your house carpeted, it will be difficult to recoup the costs. Carpets are not trendy anymore and people prefer bare spaces nowadays as they are more durable. Spending on a plush wall to wall carpeting may mean limiting your prospective buyers or probably having to remove it if the new buyers do not want it. People avoid carpets for various reasons. The color or style may not be to the buyer’s liking. Carpets can be easily damaged and families with pets will not want it, as cats and dogs can easily rip it. Carpets harbor dust that can cause allergic reactions, therefore it is not a popular choice.
Wallpaper comes in different designs and colors, and the taste of every individual is pretty subjective. Your prospective buyer may not like it and removing it is a long and hard task that the buyer may not want. It may be the tipping point for anyone who wants a house on an urgent basis and doesn’t want the wallpaper removal hassle. It is safe to have walls painted in neutral colors that can go well with any color scheme.
#8 Elaborate Landscaping
Beautiful and well-maintained lawns may look very appealing, but you may not be able to get out what you put into them. Upscale landscaping is not only expensive but also time-consuming and demands constant upkeep. You may have to hire a gardener which is again an extra expense. Buyers may not like the extravagant water features and fancy land enhancements you have added. They may also look at the upkeep of a lawn as a burden. It is better to go for simple landscaping that can work in all seasons.
Making improvements to your home should give you enjoyment AND provide financial value as well. Now you know about renovations that hurt home value.