Many homeowners, especially around the time of selling, get “the itch” for upgrading. In theory, upgrades sound great! Spend some money to improve the beauty and functionality of your home. Then, when it comes time to sell your home, that investment will add more value to your home and bring in more money. We call this number a Return on Investment (ROI) and this is the value you gain or lose from your investment. If you invest $5,000 into a renovation, for example, and that renovation brings $6,000 in value, your ROI was $1,000. You hope for a high ROI when you put upgrades into your home, but what upgrades pay off? The reality is there are a number of home upgrades that don’t pay off, despite popular belief, and you don’t want to fall into those pits. High ROI is our goal here, so don’t make the following home upgrade mistakes.
The Glorious Pool
One of the biggest myths floating around in the real estate world is that a pool will add a high value to your home. The truth is pools are one of the biggest home upgrade mistakes. According to Fixr.com, you’ll pay an average of $21,919 for a standard in-ground pool. You may only recoup part of your investment with this installation. Many home buyers see pools as a high maintenance and high cost amenity.
Only make enough improvements to stand out in the competition. You want to make improvements that still keep you to the same standard as the neighborhood. Why? Many prospective buyers attracted to your neighborhood may not be willing to pay for those upgrades and your home’s value will be held down by other properties.
It may be tempting to turn your garage into a game room or take the closets out of a bedroom to convert it into a gym, but these are big home upgrade mistakes. Many room conversions may not appeal to most people, limiting the amount of prospective buyers. Plus these could remove a room count from your home and technically the title of having a garage as well.
Designing to your unique style may not appeal to potential home buyers. Home buyers need to imagine themselves living in a house, which is hard to do if the décor and design is bold or clashes against their lifestyle (such as religious or cultural decoration).
Home upgrade mistakes can even include sports. Not everyone is a sports fan, and those who are may not like the same sports as you. Adding spaces for sports such as a Basketball court, tether ball or putting holes could cause your ROI to fall short. Not just that, they take up a lot of yard space and are difficult to reverse.
High Maintenance Landscaping
Everyone loves beautiful gardens, but not everyone wants to put the money and effort into maintaining them. Installing high maintenance landscaping can be very intimidating to a lot of people. According to HomeAdvisor.com, the cost to maintain standard landscaping is $167 a month and that number can go up depending on required care.
If your appliances end up being more expensive and high-end than other homes in your area, you’re not doing yourself any good. Buyers usually aren’t willing to pay extra for high-end appliances they don’t necessarily need during a home purchase.
Ready to find out what your home is worth without these home upgrade mistakes? Click here for a Comparative Market Analysis!