10 Home Improvements That Do Not Add Value to Your Home
Homeowners spend about $400 billion annually on house upgrades. While some add value, recouping the costs of some upgrades is almost impossible. Understanding how a project will impact your home’s resale value is vital, especially when planning to sell soon. Here’s a list of home upgrades that don’t add value to your property.
1. Swimming Pools
A pool can offer relief in scorching summers and help you stay fit, but it’s an expensive project. An average in-ground pool costs about $50,000, while pools with fancy features can exceed $100,000. And this doesn’t include maintenance costs, safety features, and water treatment.
Studies show that a pool can only add about 7% of your property value, making it quite hard to recoup the costs. Typically, homes with a pool are more expensive to insure due to higher risks of accidental drowning claims.
2. Garage Conversions
A garage conversion provides a quick way to add more habitable rooms to your home. But it’s only worth it if you are not planning to sell the property in the foreseeable future. Most garage conversion projects cost more than $10,000 but may not add tangible value to your home.
More than half of homeowners consider a garage living area desirable, meaning most people want a practical garage. Additionally, most home buyers want a place to keep the car away from harsh weather elements.
3. Novice DIY Upgrade Projects
Custom DIY upgrades can be worthwhile if you have spectacular skills. But if your DIY project isn’t impeccable, potential buyers can quickly notice the blemishes.
Besides, most DIY projects cost more and yield poor results that don’t add value to your home. It’s best to spend money on a smaller project that will significantly impact the resale value. In addition, DIY projects can prevent you from seeking professional services since you are too accustomed to your home.
4. High-End Landscaping
Landscaping can ensure a great first impression and improve your home’s perceived value. But the advice is limited to proper lawn maintenance and installing outdoor lights. High-end landscaping with luxury add-ons can cost more than $8,000. After installation, you need to maintain the landscaping, which can cost up to $4,000 per year.
The upgrade may not be a wise investment unless you plan to move immediately. Ideally, limit your landscaping budget to less than 10% of your home value since any additional investment will be hard to recoup.
5. Extravagant Bathroom Upgrades
Bathroom upgrades are popular projects among homeowners. While bathroom remodels can increase your home’s value, you need to keep it simple.
It’s tempting to surpass the safe remodel budget, especially when working on an outdated bathroom. Some features like high-end flooring and new tubs are excellent, but recovering the expenses may be harder.
6. Solar Panels
Installing quality solar panels can lower your energy bill and carbon footprint, but they don’t increase your home’s resale value. The project costs about $14,700, but you can only recoup 10% of your investment.
The value depends on the ownership model -lease vs purchase. Leased solar power systems don’t add value to your home since you don’t own the components. And while purchasing solar panels adds value to your property, the value depreciates by 9% per annum due to age and newer technology.
7. High-End Inbuilt Appliances
If you spend a lot of time in your kitchen, upgrading to high-end appliances may seem like a good idea. But if you plan to let go of your home, you may want to skip the idea and buy something less expensive.
Most high-end appliances often cost almost double the amount you’d pay for ordinary appliances, but the features are more or less the same. And while you can move with your appliances, it may be impossible when they’re inbuilt. Besides, it’s best to sell your home with all fittings intact.
8. Lavish Carpets
Replacing your carpet gives your home a fresh touch, and it’s easy to think the upgrade adds value to your home. It might be true if the prospect has the same taste for your choices, and they might close the deal faster. But it’s a huge gamble.
If your best buyer doesn’t share your sentiments, they’ll consider replacement options and potential costs. Instead of spending the money on lavish carpet upgrades, choose a cheaper flooring option that looks neat.
9. Expensive Wine Cellars
Custom wine cellars add luxury and elegance to your home, especially with an extensive collection of rare wines. But the item costs about $40,000, which is hard to recover since even passionate connoisseurs may be reluctant to spend money on the wine cellar.
While the feature can arouse interest among realtors, you’ll need to find a buyer who’s equally passionate about wine to get an offer. Otherwise, not every buyer wants a wine cellar in their home.
10. Custom Wallpapers
Wallpapers are gaining popularity among homeowners and real estate developers, but they may not improve the resale value of your home. Homeowners spend up to $1200 to install wallpapers in a room with uncertain possibilities to recover the cost.
Typically, wallpapers have custom features, and a design or gradient that pleases you may not appeal to prospective buyers. Besides, most realtors may advise you to remove wallpapers before staging a home.
The Bottom Line
Home improvement projects can refresh your home and improve your experience. However, consider your home ownership plans before you implement any upgrades. If you plan to sell soon, invest in home upgrades that increase resale value.