Home renovations that will hurt your home value
Most folks considering listing their homes know it’s a seller’s market and considering all the home values have been sky rocking these days, homeownership is proving to be quite the investment. There are benefits such as appreciate over time, home equity, and even tax deductions. But what about home renovations. Sometimes adding certain home renovations can be bit tricky In fact certain home renovations can do more harm than good. Yahoo!Finance mentions 20 home renovations that will hurt your home value. In a market like this, with wildly competitive open houses, sky-high prices, and ever-escalating offers. I get it, why not add an extra touch to make your home stand out even more? Maybe your thought process would be more offers than expected will come in, but be careful; sometimes less is more.
Home sellers, don't invest more than what you will recoup
A luxury bathroom with some updates can definitely add value to a home. But home sellers may sometimes take "luxury' to a whole new level and get very carried away
Potential buyers could be scared off by bathroom remodel mistakes like over-personalized finishes and over-the-top whirlpool tubs that are hard to clean and hard for some people to climb into. Instead, consider a walk-in shower, which typically uses less floor space.
When considering updates for your bathroom, keep in mind that you could benefit more from small improvements than major upgrades. For example, add storage to your master closet bathroom or add a double sink for convenience. Recognize the small thing that home buyers look at, like cleaning mirrors and windows, so they sparkle or clean and freshen bathrooms, put out clean towels, and minimize clutter.
What about an extremely high-end kitchen? This one is one of my personal favorites because I believe so many people gather here, whether it would be friends coming over for a glass of wine, hosting the next big family event or party, or just making dinner. It seems like everyone is hanging out in the kitchen one way or another. This is by far the most popular place home buyers look at. In fact, the kitchen is what many homeowners save up for, and is considered "the heart of the home" Yahoo! Finance mentions,
The resale value of a major, high-end kitchen remodel is actually less than what you'll invest in it, however. In 2020, the national average for a major kitchen remodel was $68,490, but the resale value was only $40,127, according to the site Remodeling. To avoid kitchen renovation mistakes that won't give you a return on investment, try to focus on which aspects of the kitchen are most outdated or worn. And as tempting as it might be, consider selecting mid-range appliances rather than the expensive high-end options.
It is very important to focus on places in the kitchen that are outdated, like kitchen cabinets, for example. Focus more on buying good quality paint and repainting cabinets that will provide a look that lasts as long as new cabinets. Consider warm and inviting colors like white, greys, or consider a slate, soft grey-blue feel. These are some great colors that are not only in style not but definitely appealing to a buyers' eye. Or, change the handles to give the kitchen a more updated feel. Some benefits of repainting your kitchen cabinets would be: less expensive than replacing them, and it gives a whole new look and feel at an affordable cost. And considering the help that you may get; it can take a significantly less amount of time than it would if you hire someone to do a larger renovation
NHance points out the amount a home seller will spend on cabinet paint and the home sale value return,
It was found that neutral colored cabinets have a significant impact on what a buyer is willing to pay for the home. One current trend that is very popular has been tuxedo cabinets, or cabinets that are lighter on top and darker on the bottom. On average, this trend alone can boost a home’s value by $1,547. By painting your kitchen cabinets and then pairing them with some new hardware that dollar amount can increase significantly. It only costs around $250, sometimes less, to replace kitchen cabinet hardware, and you can update your cabinet color for as little as $300. These small updates can end up making a huge difference!
With the ability for many to work from home now and work remotely, many people no longer need to commute to their jobs every day and so are turning one of their bedrooms into a home office. Homebuyers seem to be more interested in a designated office space that was already part of the house, not a bedroom that was converted into one. Yahoo!Finance adds to this thought,
If the new office was formerly a bedroom, this could be a costly mistake. Along with removing bedroom furniture, you will likely need to add wall outlets and phone jacks (up to $425) and install new hardware, which could bring the total cost up to $3,000, according to HomeAdvisor. If a prospective buyer would rather have the bedroom space, you spent a lot of money for nothing.
A lot of people also like sunrooms. You can enjoy all the outdoor elements and yet remain inside. But it turns out it can be the worst remodeling decision that you can make when trying to add to your home value
.... a sunroom addition is one of the worst home renovations when it comes to return on investment, with a cost of an addition exceeding approximately $75,000 while only adding just over $35,000 to the value of the house.Think carefully about how often you'll use a sunroom before committing to this costly renovation, especially if your home might be on the market soon. Plan ahead to avoid the sneaky expenses that come with renovating your home.
What else should'nt you do if you plan to sell your home?
Yahoo!Finance mentions several other things to stay away from. Things like light fixtures can be a personal preference, but they can get outdated quickly. Sticking to simple is best. Also, having too much wallpaper can be very overwhelming to a homebuyer. Wallpaper can be very difficult to remove, so the last thing you want at an open house or showing is having home buyers think they are going to have a lot of work removing it versus a more move-in ready home. What about quirky tiling?
Any over-personalized renovation can hurt the value of a home, especially something like tiling, which requires more effort and money to replace, said Bob Gordon, realtor and blogger at Boulder Real Estate News."Many buyers like to upgrade the floors in their homes," he said. "Adding tile or wood can make an improvement in value — unless you get that person who wants the 1950s diner look and installs black-and-white tile. For their vision, this is the pinnacle of cool. But for a resale value, most homebuyers will see it as a distraction and something they will need to rip out
Yahoo!Finance also mentions too much carpeting isn't always a great idea. Carpet can actually quickly show signs of damage Instead new hardwood floors can increase the sale price of a home by up to 2.5%. Another thing that is not recommended is combining bedrooms to create a bigger room. A real estate investor mentioned that it is a bad move if you have no intension of staying in the home forever. Saying that "even small bedrooms add value to a home, as most families want children to have their own rooms but don't mind if they're on the small side," he said. "In my experience, each bedroom can add about 15% to the value of a home". A swimming pool is another big one. A swimming pool could increase a home's value by 7%. However, that may not always be the case. Swimming pools are less likely to add value unless you live somewhere that is hot for about six months out of the year. The cost alone to build a pool and the maintenance costs is not worth it for a homeowner.
Wrong landscaping can be a bad Investment. Landscaping is something that a lot of homeowners don't think about if they plan on selling in the future. In fact, costly landscaping will not increase the value of your home but rather increase the maintenance that will be required for it. The homeowner may love the overall curb appeal, but a home buyer will look at it and think it's a lot of maintenance that they may not be ready for. Keep it simple and clean-looking. Less is more.
Sometimes, the best thing that someone can do is investigate. Yes, naturally, you will want to make improvements to increase your home's resale value, but some renovations will actually cost you money in the long run. Keep in mind that just because you see something as an improvement doesn't mean a potential home buyer will feel the same way.
Talk to a professional and ask them if they think that the $80,000 kitchen you plan to spend on will add to the home's value. The chances are the value did not go as high as you had expected. Or talk to a real estate agent that knows what home buyers are looking for. Sure, there is a subjective opinion, but you really want to look at things objectively. Though a home buyer's subjective opinion may increase an offer,adding value to the house is less likely to be expected.
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