If you are selling your home soon, it can be tempting to plan a few upgrades. While some renovation projects – like a bathroom remodel or garage door replacement – add your home’s resale value, others do not. Here are a few home improvement projects with a low ROI.
Luxury Projects Have a Low ROI
People often think about high-end upgrades when they want to increase a home’s value. It is a widespread belief that expensive products and materials will significantly boost property value, but that’s not always the case. The money you spend on high-end kitchen appliances, imported tiles, or luxury marble countertops does little to increase the home’s resale price.
Buyers don’t often understand or care about the cost of these materials, meaning they may not be willing to pay for the value they can’t assess. Others buyers might feel intimidated by high-end renovations and the required maintenance and shy away from the house altogether. To recoup your money, perform less substantial remodels throughout the house.
There are endless reasons why you might convert your garage space into a new room. Maybe you want a home office, an extra bedroom, or even a kids’ playroom. If you’re selling the property soon, you might reconsider this renovation.
It will be costly to transform your garage into a living area; unfortunately, this project doesn’t have a great return on investment. The reason? Many homebuyers prefer a functional garage to keep their cars safe, not an extended living space.
Wall to Wall Carpeting Won’t Add Value
Not long ago, carpeting was a trend in home design. Today, that’s no longer the case. More and more homeowners are removing this flooring because of the harmful chemicals used to make it, and carpet fibers trap allergens. Carpet can be a deal breaker for households with kids who suffer from allergies.
If you’re upgrading the property, don’t choose carpet as the primary flooring throughout your home, as it can deter buyers and decrease the property value. Instead, opt for hardwood floors because they appeal to most homebuyers.
Projects with a Low ROI: Installing a Swimming Pool
If you enjoy swimming and want a place to entertain friends and family during the summer, you might install a pool in your backyard. However, if you have plans to sell the home, reconsider the decision.
You can easily picture your family and friends lying by the pool and sipping drinks on a hot sunny day. However, prospective homebuyers may see the pool as a benefit; instead, a hassle because of the required maintenance and repairs. Some buyers might consider a pool a dangerous liability, especially if they have young children. You might spend thousands of dollars on your backyard pool only to earn no return on your investment.
When choosing improvements to boost property value, consider when you plan to sell it before tackling major upgrades. If you are listing the home soon, only some projects add value.