You may have heard it before – the best way to make a financial return on your home is to invest in it. But as with any investment, there’s always a chance of losing out if you don’t make smart decisions. This can be especially true for your home renovations. If you are not careful, certain home refreshments may hurt your resale value rather than increase it.
Here are types of home renewals that tend to turn off potential buyers and decrease the resale value of your home. So without further ado, let’s dive in!
1. A Luxury Bathroom
It can be easy to get carried away with lavish, over-the-top home renovations, but they often don’t pay off when it comes time to sell your house. Take a luxury bathroom for example. Installing marble countertops, a large Kohler bathtub, and heated towel racks may seem like an upgrade now, but it won’t necessarily add value to cover the cost of renovations when you list your home.
Even worse, it could lead to fewer offers as potential buyers may not find the luxury amenities as valuable as you do. That’s not to say that you shouldn’t upgrade your bathroom at all – just be smart about how much money and time you spend on it.
2. A Swimming Pool
While a swimming pool has the potential to increase the value of your home, it all depends on the local market. Depending on your neighborhood, a pool may give potential buyers pause. This is because of extra maintenance and costs associated with maintaining one, such as filling and draining the pool each season, regular cleaning and filtering, and buying chemical treatments.
3. Extremely High-End Kitchen
Are you planning of transforming your kitchen into something that looks like a spread from a Michelin-star restaurant? That’s great for you, but it may not be great for potential buyers. Investing in an extremely high-end kitchen can hurt the resale value of a home.
When investing in a quality kitchen, it’s essential to keep your buyer in mind, since they won’t always appreciate custom-built cabinets, luxury appliances, and imported marble countertops.
4. A Hot Tub
Adding a hot tub to your home can feel like a luxurious addition and help you relax after a long day, but according to experts, it may not be worth it in terms of resale value. Depending on how you install and maintain it, a hot tub can be expensive to keep up and maintain. And unless other buyers are looking specifically for a home with one installed, it might not add anything to the resale price.
In addition, hot tubs are always attractive additions to homes, so even if someone is looking for one, they might prefer an outdoor version or opt for something different than what you’ve installed.
5. Built-In Aquarium
You might think that having a built-in aquarium in your home is a cool and interesting addition, but it’s still not necessarily a good idea if you’re looking to resell the property in the future. This is because, while it may add a unique touch to the home, if it’s not properly taken care of it may be removed when the time comes for someone else to buy the house.
Plus, potential buyers will have their ideas about how they want their home to look and feel – and an aquarium might not fit into those plans.
6. A Sunroom Addition
Believe it or not, that sunroom addition might not be the wisest long-term investment when you’re thinking about resale value. Sunrooms often don’t fit in with the rest of the house and they may lower the sales price overall.
Sunrooms cost an arm and a leg to install and usually don’t return much of the cost when it comes to resales- you can only get back part of what you put in.
7. Removing Closets
Buyers expect to have ample storage space and will be less willing to buy if you took away an area in the house that was intended as storage. The National Association of Realtors estimates that about 75% of buyers consider walk-in closets to be somewhat or extremely important for their home purchase decisions.
When it comes to making renovations to a home, it’s important to think about the future. If your plan to move shortly, you should think carefully about which renovations will benefit you and which will hurt resale.