Many homeowners believe that an investment in home improvement, no matter what kind of investment it is, will increase a home’s value. Unfortunately some renovations that damage real estate value and make your home harder to sell and force you to take a price cut when you do find a buyer. If you’re considering renovations with the end-goal of improving your property’s value, make sure you don’t fall into any of these traps before you start.
4 Renovations that Damage Real Estate Value
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Usually an updated kitchen with new appliances raises a real estate value. However, kitchens upgraded with restaurant quality appliances and layouts are not a good ROI. Your average buyer does not need an industrial sized oven or 800 square feet of kitchen space featuring marble countertops and a gigantic built-in wine rack. You may love to cook enough to put in a kitchen like this for yourself, but don’t expect your home’s value to go up by the same amount you spent on the upgrade.
Shoddy DIY Projects
DIY projects like hanging pictures or wall shelves are great for the average homeowner. DIY projects like installing your own kitchen cabinets or putting in a new toilet are best left to the professionals. When you do a bad job at your DIY project, home inspectors and appraisers (two people who need to value your house high when you want to sell) will notice the bad job and will report on it to interested buyers. If you did a really bad job at, say, installing new crown molding, it’ll be obvious as soon as the realtor walks in the front door.
Garish Tile Installations
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If you want a bright red wall in your house, do it with paint. When you’re about to sell, painting over a couple of walls is a simple fix for an extra-personal touch. Do not install tile that has bright colors or busy patterns, or is very specific to your taste. (As an example: tile featuring an animal pattern is not a good idea.) Tile takes far more time and money to replace. Home buyers won’t be pleased to walk into your bathroom to find your tile alternating lime green and magenta, nor will they love a kitchen backsplash featuring poodles.
A Hot Tub
Some people love the idea of owning a hot tub and if you can find that buyer, great. Most buyers, however, see a hot tub as extra maintenance that they won’t use very often. Buyers with young children may look at a hot tub and see danger. Built-in hot tubs are the biggest no-nos because they leave bare patches in the back yard or holes in the deck when you want to remove them, which ups your remodeling costs.
If you can’t live without any of these renovations, go ahead and make them. Be aware that they’ll make your house harder to sell when you’re ready to leave. Just be willing to invest more money to undo the features you crave or to sell your house for a bit less than you think it’s worth.