Home improvements seem to be a no-brainer for your personal enjoyment and often times for your finances. However, there are some times that the renovations that you do to your home do not translate into an increase in your properties value. The biggest value improvers are renovations to the kitchen and bathrooms, however when you move away from renovations from these two rooms you should weigh the pros and cons of each project, as you may not get the money out of all of the jobs to your home.
1. Not Reading the Demands of the Market
2. Taking Out too Many Walls
3. Reduce the Number of Bedrooms
Resist the urge to enlarge living space by reducing the number of bedrooms. Even a small bedroom can make a difference for marketability. Some buyers will only look at homes if they advertise 3 or more bedrooms and taking a 3 bedroom house down to a 2 bedroom house could limit your ability to sell.
4. New Carpeting
Carpet is not a feature that all buyers are interested in, so installing new carpeting for yourself is ok, but for a potential buyer it may be disastrous as a lot of buyers want to rip carpet out and install hardwood or they may not share your same selection.
5. Adding a Pool
6. High End Updates in Average Home
Adding ultra-high-end finishes in a home that is of a lower price point both looks out of place and will potentially put the listing on the higher end of comparable sales. Adding a chandelier to a semi-detached home with low ceilings, for example, would not seem fit.
7. Over the Top Landscaping
Spending a lot on landscaping can make a backyard seem inviting, however these dollars spent are rarely investments. Often a buyer looks for privacy, a fence and a deck since they may want to leave their own imprint on the yard.
8. Being a Trendsetter
While being on the cutting edge of design could be considered being ahead of your time, when it comes to selling a home a highly customized living space with less than neutral design choices may actually alienate buyers and not payoff as they will want to renovate the space to match their tastes.
9. Upgrading Aging Roof or HVAC without Anything Materially Wrong
If the roof or HVAC is old, but not encountering any problems then do not get it redone as these are considered invisible renovations that the buyer will likely not appreciate and will not translate into an increase in the selling price.
10. Removing Closets
While removing large closets can free up space for other areas of the home like an ensuite bathroom, do not be tricked into performing this renovation as buyers are very attuned to storage. If there is no closet in a bedroom then the buyer knows that they will need to buy a wardrobe, taking up even more precious space.