Every year thousands of home owners decide to give their home some sort of face lift. This can be to fix issues, add value to their home, upgrade to something newer and better.
Before starting any home improvement it is important for you to do your research. Review your housing market to see what has the best potential of adding value to your home.
It is quite common to think that any money you put into your home will increase its value. That is not always true.
Many times people don’t have the save views as you so they may be driven away by certain upgrades.
Sometimes the cost of an upgrade doesn’t make sense for the home. You wouldn’t want to put a new $75,000 bathroom in a $125,000 home. When you go to sell your home it is unlikely that you will be able to recoup that entire cost.
Here are the 9 Worst Home Improvement Projects That Lower Your Homes Value.
Over-the-top improvements and upgrades.
It is generally difficult to get your money back on an over-the-top upgrade unless you home is in the million dollar price range.
If you have a $150,000 home, spending $75,000 on a master bathroom upgrade is not going to suddenly bump your homes value up to $250,000.
Buyers in that market can’t afford a home that expensive so the value wont increase that much therefore you wont recoup the investment.
There is nothing wrong with upgrading your master bathroom. Just don’t add a fireplace and a steam shower if your house isn’t in a market where those items are popular.
Fixing up your home office.
You may use your home office to get some work done at night or rock a side hustle or two. That doesn’t mean everyone does that.
It is never a good idea to convert a bedroom into anything but a bedroom. In most cases this can drop the value of your home up to 10% right away. People value bedrooms.
If you want to upgrade your office try new furniture as opposed to changing the entire room. This way when you go to sell your house the buyer has the option to use it as a bedroom instead.
Contrary to what many people believe, adding a swimming pool to your home doesn’t necessarily mean n increase in your homes value.
Unless you live in an area where it is hot six months of the year or more then pools tend to be more trouble than they are worth.
With the high cost of installation and monthly maintenance, a pool isn’t worth it for most homeowners. If you do live in a southern state then a pool has the potential to boost your homes value up to 7% on average.
Again, research your market and find out if there is a demand for pools in your area. I live in south Florida and a lot of people wouldn’t even consider buying a house without a pool.
Wall to wall carpeting.
Most home buyers are willing to pay more for a nice hardwood floor.
Compared to hardwood, laminate and tile floors, carpeting can show wear and signs of damage very quickly.
Not to mention that colors and textures are highly based on personal preference. You may love your green Berber carpet but the next person may hate it.
Personalized decor and specialized spaces.
Any large home improvement project that is highly personalized to you is not likely recoup the investment cost. You may happen to love something but no one else may not like it that much. Doesn’t mean there is anything wrong with what you like but you aren’t as likely to get your investment back.
A trip to Napa may have inspired you to add a beautiful walk in wine cellar to your basement. Not everyone is a wine lover. The high cost of this could deter potential home buyers.
Try and stay away from highly personalized home improvements.
Garage addition or conversion.
Garage additions can be quite expensive. Although it may be on some home buyers wish list it may be difficult the $20,000-$40,000 it takes to add-on a one car garage.
Many home buyers also don’t like to see an existing garage turned into something else. If you are a health nut a home gym in the garage may sound like a wonderful idea. The next owners may not work out at all and pass on your house because their cars would be out in the weather.
An extra bedroom may sound like a nice idea, home buyers do like bedrooms, but they like garages too. The chances of recouping your investment are not great if you convert your garage to anything but a garage.
A recent survey I saw, on MarketWatch, said 74% of the 7,500 people surveyed said a garage space is very important to them.
People need and want closets, just ask my girlfriend. If I told her I wanted to remove a closet she would just laugh at me.
One of the things buyers almost always do is look at the closets in each room. If a bedroom doesn’t have a closet this is a huge turn off.
Most buyers would prefer a slightly small room in order to have a closet.
They have to be able to put their stuff somewhere!
Combining bedrooms to make a bigger room.
I have learned quite a bit about real estate through flipping homes. One thing that I have learned is that it tends to hurt the value of the home when you combine bedrooms to make a bigger one.
Bedrooms are used mostly for sleeping. You don’t need a ton of space for that.
In my experience a 3 bedroom house with 3 medium size bedrooms will sell much better than a house with 2 bedrooms that are a bit larger.
Of course this differs in different markets so do your research.
If you want your rooms to appear bigger try using lighter colors and modern furniture.
Built in aquariums.
Built in aquariums are really cool, I watch Tanked on Animal Planet all the time. However, not everyone feels the same way plus tanks are expensive to purchase and maintain.
You may drive potential buyers away for two reasons. They may not want an aquarium in their home. Also, aquariums can cost tens of thousands of dollars to have built and are expensive to maintain.
I have seen estimates of $.50 – $1 per gallon per month to maintain an aquarium. If you have a 500 gallon tank that is an extra $250-$500 a month in maintenance!
You are unlikely to recoup the upfront cost of the aquarium and the number of buyers who can afford the monthly maintenance of an aquarium may be few and far between.
If you like fish then stick to a smaller one that can be taken with you. Your bank account will thank you.