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5 Home Upgrades That Won’t Add Value

by | Feb 16, 2017 | Additions, Remodels

It is important to note that if you are not going to be selling you home within the next five years then these 5 tips don’t apply. Adding upgrades to your forever home is something you should do without worrying whether it will “add value.” However, if you are on the flip side and are going to be selling your home quite soon, then you might want to pay attention to these tips so you get the most bang for your buck!

Just because you upgrade doesn’t mean you will profit when it comes time to sell. If you are hoping to increase your home’s value, you should know that the upgrades you value might not be valuable to potential buyers. In facts, you may never recoup the full cost of some home improvements and the primary offenders might surprise you

1. Adding A Pool

Pools can be hit-or-miss when it comes to added value. Since we are in Florida we are in the clear since we only get 4 days of winter here. However, for our snowbird friends, it might not be a good idea to add a pool to your upgrade list. Often for them, the return is not enough to pay for the pool itself. Don’t forget to budget a large chunk of change to operate and maintain the pool. When you throw in maintenance and the actual construction the chances of recouping your losses is fairly low. Also, adding a pool to your home could be a major turnoff to some buyers who have small children or those looking for low-maintenance homes.

2. Custom Designs That Are Too Custom 

Like I mentioned before unless you plan to stay in your house for many years to come, you might want to think twice about renovations that are too personalized. If you are installing a kitchen backsplash, a specific type of tile that you love, might not be what buyers are looking for. Thay could be just as happy with a simple ceramic tile as they would with an expensive Calacatta marble tile. Similarly, choosing a beveled countertop edge that’s complex and ornate, rather than a basic beveled edge, could offer buyers whose taste don’t align with yours.

In fact, these custom features may wind up costing you come listing time, as many buyers will factor in the money they will need to spend to change the house to suit their own tastes. if you’re going to upgrade your kitchen just for the sake of selling, stick with neutral, builder-grade design decisions.

3. Room Conversions

Buyers look to check boxes when they tour your home: For example, three bedrooms, two bathrooms, and a garage. Getting rid of these expected spaces or altering them into something unusual, may harm your resale value. Bedrooms are coveted spaces that can bump your listing up into the next bracket. Buyers are looking for a specific number of bedrooms, and may not appreciate the work it took to take a wall down for a secondary master suite or the soundproof foam to convert into a recording studio.

4. Incremental Square Footage Gains

Sizable square footage gains like finishing your basement so it becomes an additional livable floor can be great in buyers’ minds. However, tiny, insignificant changes may not give you much of a return on your investment. You may love your new sunroom, but it’s not likely to drastically increase your home’s overall value. Adding square footage in a way that doesn’t flow well with the floor plan can also backfire. Sure, a half bath on the first floor would be useful, but if buyers have to pass through the kitchen to get to it, the half bath loses some of its appeals. Since we are in Florida a lot of people look for great outdoor living spaces with lots of shade to protect from the heat.

5. Over-Improving

When your upgrades feel overboard for your neighborhood, you alienate buyer on two fronts: buyers who are drawn to your neighborhood won’t be able to afford your home, and buyers who can afford your home would prefer a ritzier area. Keep the base level of your neighborhood in mind. Tour some open house on your block to see how your neighbors’ kitchens look before you invest a small fortune in granite countertops and high-end fixtures. Being a little nicer than the other houses around you can be a selling point, but being vastly more luxurious is not.

Pursue these home upgrades for your own enjoyment – but don’t trick yourself into believing you’ll more than recoup the cost of the improvement in the form of a much larger listing price when it comes time to sell. You can always opt for the projects that have the best potential to draw in a buyer instead.