When thinking about upgrading your home, you should also be thinking about whether or not those upgrades will add or detract from the resale value of that home. Most people don’t stay in one home for their entire life. In fact, most people buy several homes in their lifetime as their family and lifestyle changes. Even if you buy a house with the expectation you will live there forever, generally, various life events will create a need to move at some point. Therefore, it’s best to think about how your chosen upgrades will affect your home’s resale value before you begin.
Here are seven upgrades to avoid when remodeling your home.
1. Pools and Hot Tubs
There is only a small segment of the population who view a pool or hot tub as a must have when it comes to buying a home. In fact, most people see a pool or hot tub as an added burden due to the labor involved and the expense of maintaining it year round.
2. Room Conversions
While more and more people are working from home, converting one of the bedrooms to a home office is not a good idea. When looking for a home, people have certain requirements before deciding which home to buy. For example, a home with a minimum of three bedrooms and two bathrooms. Therefore, if you eliminate one of the bedrooms you will be hurting the resale value of your home. The same goes for taking down a wall to enlarge another room. Either way, you are eliminating a bedroom; therefore, it’s not a good idea.
3. Garage Conversions
Converting the garage into a room is another no-no when it comes to home renovations. The majority of homebuyers want that space to use as it was intended versus having additional living space. If they wanted additional living space they would just look for a home with that already has that much space and a garage. Most people need a garage to park their vehicles, for storage, and other miscellaneous uses.
4. Customized Features and Designs
Any feature or design that is very specific to your needs and desires should be avoided. For example, adding a built-in aquarium might be something you’re passionate about and it might look great as well. But not everyone will feel the same. Not to mention the expense and upkeep an aquarium would require.
5. Built-In Electronics
Another upgrade that might seem like it should add value to your home is built-in electronics. However, built-in electronics are a bad idea because everyone has different wants and needs. For example, how big of a TV they have, or if they need a space for a gaming system or other lifestyle specific electronics. Not to mention how quickly new technology changes. Who knows what might be needed, or not, within the next few years. Therefore, customizing a space based on your technology needs should be avoided.
6. Extreme Outdoor Renovations
Outdoor living spaces are great and will add some value to your home. However, expansive outdoor renovations might not add as much value you as you would like. For example, building out your backyard with an outdoor kitchen with plumbing, a built-in grilling station, and an entertainment system is an attractive feature for most buyers; however, generally, you won’t recoup the money you’ve spent to have it installed. Not to mention that in most parts of the country, an outdoor living space can only be used during certain times of the year.
Over-improving your home versus what the other homes in your neighborhood have or over-improving any given room in your home isn’t good. For example, if you add improvements to your home that aren’t in line with what the other homes in your neighborhood generally have, you usually won’t get back your investment when it comes time to sell. Because most people aren’t going to pay more for your home than the market will allow. So just because yours is the only house on the block that has a sunroom and it cost you $20,000 (just a sample figure) to have it built, doesn’t mean a buyer will pay more for it. The same goes for over-improving any of the rooms in your home. Because you will almost never get back anywhere near what you put into having it done.
The Bottom Line
Before choosing any upgrades or renovations for your home, spend some time learning which upgrades will add value to your home, and which ones won’t. Otherwise, it could end up costing you in the long run.