5 Home Renovations That Won’t Boost Your Resale Value
Wise Bread Picks
The first major home renovation my husband and I ever undertook was insulating the walls of a 1921 Craftsman bungalow we shared in Columbus, Ohio. This project significantly enhanced our comfort throughout the year, as the original insulation was inadequate for maintaining heat in the winter and coolness in the summer.
However, despite the undeniable improvement in our living conditions, we discovered that our investment did not translate into increased resale value. After spending nearly $5,000 on this renovation, we were disappointed to find that it did not reflect in our sale price when we moved a few years later.
It’s essential to recognize that not all renovations will boost your home’s resale value. This doesn’t mean you should avoid making improvements; for instance, I would insulate that house again, even knowing the financial return would be minimal. However, some renovations simply won’t yield a return on investment. Before diving into any home improvement projects, consider how long you plan to stay in your home and whether you’re renovating solely for increased value.
1. Invisible Improvements
Insulating our bungalow was an invisible improvement that needed to be done but didn’t visibly change the house. Unlike more glamorous upgrades like kitchen or bathroom remodels, invisible improvements—such as re-grading the yard, updating the HVAC system, tuck-pointing bricks, and replacing gutters—often go unnoticed. While these upgrades are crucial for maintaining your home, they typically don’t increase its resale value. Think of these expenses as protecting your home’s current value rather than enhancing future resale potential.
2. Swimming Pool
In regions like Arizona, Florida, and Southern California, a swimming pool can be a significant selling point. However, nationwide, this isn’t the case. The average cost to install a pool exceeds $27,000, not including annual maintenance costs that can range from $500 to $4,000. These ongoing expenses, along with the work required to keep the pool clean, can deter many potential buyers. Additionally, homeowners with pools face increased insurance requirements, making a pool less appealing to prospective buyers.
Therefore, only commit to installing a pool if you genuinely want to use it and plan to stay in your home for at least five years. Otherwise, consider investing in a local pool membership instead.
3. Bathroom and Kitchen Upgrades
While remodeling your bathroom and kitchen can enhance your home’s value, there’s a risk of overdoing it. Upgrading outdated appliances and replacing worn-out tiles can attract buyers, but extravagant upgrades—like granite countertops and custom cabinets—might not align with the rest of your home. If the rest of your house remains ordinary, potential buyers may view it as a work-in-progress rather than a move-in-ready home.
4. Built-in High-End Electronics
While the idea of a fully equipped smart home is appealing, investing in built-in high-end electronics may hurt your resale value. Potential buyers might see a personal movie theater as a room that requires remodeling rather than a desirable feature. Moreover, technology evolves rapidly, and what seems cutting-edge today may soon appear outdated. If you choose to install high-end electronics, do so for your enjoyment rather than for future buyers.
5. Extravagant Landscaping
Landscaping can significantly enhance curb appeal, but overly elaborate designs may deter buyers. A complex garden with sculpted shrubs and ponds can intimidate those who lack gardening skills, while avid gardeners might prefer to start fresh. If creating a beautiful garden brings you joy, invest in landscaping for your satisfaction rather than expecting a return on investment when selling.
Renovate for the Right Reasons
While resale value is often a key consideration in home improvement projects, remember that you live in your home now. Focus on renovations that enhance your comfort and align with your plans for the future. Balancing personal enjoyment with potential resale value is crucial for making the right choices.
Wise Bread Picks
The first major home renovation my husband and I ever undertook was insulating the walls of a 1921 Craftsman bungalow we shared in Columbus, Ohio. This project significantly enhanced our comfort throughout the year, as the original insulation was inadequate for maintaining heat in the winter and coolness in the summer.
However, despite the undeniable improvement in our living conditions, we discovered that our investment did not translate into increased resale value. After spending nearly $5,000 on this renovation, we were disappointed to find that it did not reflect in our sale price when we moved a few years later.
It’s essential to recognize that not all renovations will boost your home’s resale value. This doesn’t mean you should avoid making improvements; for instance, I would insulate that house again, even knowing the financial return would be minimal. However, some renovations simply won’t yield a return on investment. Before diving into any home improvement projects, consider how long you plan to stay in your home and whether you’re renovating solely for increased value.
1. Invisible Improvements
Insulating our bungalow was an invisible improvement that needed to be done but didn’t visibly change the house. Unlike more glamorous upgrades like kitchen or bathroom remodels, invisible improvements—such as re-grading the yard, updating the HVAC system, tuck-pointing bricks, and replacing gutters—often go unnoticed. While these upgrades are crucial for maintaining your home, they typically don’t increase its resale value. Think of these expenses as protecting your home’s current value rather than enhancing future resale potential.
2. Swimming Pool
In regions like Arizona, Florida, and Southern California, a swimming pool can be a significant selling point. However, nationwide, this isn’t the case. The average cost to install a pool exceeds $27,000, not including annual maintenance costs that can range from $500 to $4,000. These ongoing expenses, along with the work required to keep the pool clean, can deter many potential buyers. Additionally, homeowners with pools face increased insurance requirements, making a pool less appealing to prospective buyers.
Therefore, only commit to installing a pool if you genuinely want to use it and plan to stay in your home for at least five years. Otherwise, consider investing in a local pool membership instead.
3. Bathroom and Kitchen Upgrades
While remodeling your bathroom and kitchen can enhance your home’s value, there’s a risk of overdoing it. Upgrading outdated appliances and replacing worn-out tiles can attract buyers, but extravagant upgrades—like granite countertops and custom cabinets—might not align with the rest of your home. If the rest of your house remains ordinary, potential buyers may view it as a work-in-progress rather than a move-in-ready home.
4. Built-in High-End Electronics
While the idea of a fully equipped smart home is appealing, investing in built-in high-end electronics may hurt your resale value. Potential buyers might see a personal movie theater as a room that requires remodeling rather than a desirable feature. Moreover, technology evolves rapidly, and what seems cutting-edge today may soon appear outdated. If you choose to install high-end electronics, do so for your enjoyment rather than for future buyers.
5. Extravagant Landscaping
Landscaping can significantly enhance curb appeal, but overly elaborate designs may deter buyers. A complex garden with sculpted shrubs and ponds can intimidate those who lack gardening skills, while avid gardeners might prefer to start fresh. If creating a beautiful garden brings you joy, invest in landscaping for your satisfaction rather than expecting a return on investment when selling.
Renovate for the Right Reasons
While resale value is often a key consideration in home improvement projects, remember that you live in your home now. Focus on renovations that enhance your comfort and align with your plans for the future. Balancing personal enjoyment with potential resale value is crucial for making the right choices.
