Renovations That Can Decrease Home Value

You spent the holidays watching nothing but HGTV, and now your mind is filled with images of shiplap accent walls and standalone soaking tubs. Refrain from allowing your desire to update your home to lower your home's market worth. Before you make your home improvement dreams a reality, you should examine whether the venture will be profitable when the time comes for you to sell. There are several home improvements, some of which increase the property's value, while others, such as these five, decrease it.

A Chef-Quality Kitchen

A luxury kitchen may be the perfect present for you if you consider yourself a foodie and like preparing meals for others. However, if you believe that a significant renovation would significantly influence the property's resale value, you could be in for a bit of a shock. According to the 2020 Cost vs. Value analysis published by Remodeling magazine, a premium kitchen makeover only recoups 54% of its cost in additional value after completion.

More modest kitchen updates may provide a greater return on investment. Chris Arienti, the broker and owner of Remax Executive Realty located close to Boston, recommends keeping the frequency of updates reasonable: Granite is a better option than marble, and General Electric is a better refrigerator brand than Sub-Zero.

DIY Painting

If the craftsmanship could be better, a wall that makes a dramatic statement may send the incorrect message to prospective buyers. According to statistics compiled by Opendoor from an analysis of home offers submitted between June 2018 and June 2019, flaky, chipped, or poor-quality paint may result in a price reduction of around $1,700 for a residential home.

Sarah Cunningham believes "a decent paint job is not simple" and "a nice paint job is not easy." "The majority of individuals don't want to put in the effort required for the preparation, which is where it's all at," Employing an expert to do the painting for you may guarantee that the finished product will be more appealing.

An Expanded Owners' Suite

It may seem like a dream to tear down a wall to make an enormous main bedroom or to take space from a closet to construct a bathroom like a luxury spa. What about using that as a selling point, though? According to Arienti, "if you move from five to four bedrooms and you can make it work, then it's not a huge concern." However, he warns that if you reduce the size of your property by eliminating a bedroom, you may have to accept a lower selling price.

Regarding reducing the closet space available, home construction standards do not require bedrooms to have closets. However, according to Arienti, "Once you remove the closet from a bedroom, it no longer seems like a bedroom to a customer."

Plush Wall-To-Wall Carpeting

According to de Jong, first-time home purchasers, who may be used to landlords upgrading carpets between tenants, may find carpets particularly unappealing. This is because landlords often update the carpet. "People strongly dislike carpets because it makes them feel dirty. It has the potential to give a space an antique appearance."

Your asking price can even take a hit as a result. According to Opendoor's research, having a carpet as the primary flooring in a home generates a value reduction of $3,900, while having a carpet in the major bedroom causes a value reduction of $3,800.

A Swimming Pool

It doesn't matter whether it's an infinity edge pool or an above-ground pool; potential buyers who want to avoid dealing with the hassle of upkeep or insurance may see any pool as a detriment to the property. According to Liede DeValdivielso, a real estate agent with the Keyes Company in Miami-Dade, a pool does not increase the value of a property, even in the state of Florida. She made this statement by email.

According to DeValdivielso, it is not worth it if you consider reselling the item since you will never return the cost of the item. Put in a pool, but only if you can utilize it and appreciate it.

How To Evaluate Whether Or Not The Costs Of A Renovation Are Justified

Consider your timeline

According to Arienti, "if you're going to be in the home for 30 years, you can do everything you want to do" since, by that time, your mortgage will have been paid off. Are you considering a sale in the not-too-distant future? Pay greater attention to whether or not the options you've chosen will appeal to a prospective purchaser.

Consult an expert

Cunningham advises, "Talk to a professional so you don't make ill-informed decisions that are going to work against you in five to ten years," and I quote: "Talk to an expert so you don't make ill-informed choices." A designer may help you differentiate between transient fads and future classics, while a contractor can describe the work required for a suggested remodel.