Can You Hurt Your Home’s Value When Renovating Your Home?
Homeowners tend to overspend on renovations, oftentimes paying an excessive amount of money for an improvement that does not add much value to the home. The worst case scenario is spending an egregious amount of money on a home renovation that decreases the value of your property. It really is possible to choose the wrong renovation, sink a bunch of your savings into this supposed improvement and end up reducing your home’s value. Let’s take a look at few examples of home renovations that have the potential to backfire in a big way.
Converting a Bedroom
It is certainly tempting to convert that extra bedroom into an office or another space that provides more utility. However, there is a significant financial risk in such a conversion. There is a good chance prospective home buyers will prefer an extra bedroom instead of something such as a study. Though you might not be thinking about selling your home at the moment, that day will eventually come. Think long and hard before converting your bedroom, run a cost-benefit analysis and consider how potential bidders will view such a conversion.
Upgrades for Kids Rarely Pay Off
The typical family with one or two kids is interested in adding a pool along with additional kid-oriented upgrades. Though it would be fun to have a basketball court, ice rink, swimming pool or another recreational nicety in your backyard, this feature will chew up money every single year. Furthermore, these features tend to be on the large side so they will occupy the majority of your backyard. Selling your property will prove challenging if the majority of the backyard is dominated by a pool, a basketball court, etc.
Swimming pools are especially costly and time-consuming. It costs a surprising amount of money to open, close and maintain a pool. The liner can tear. The pump might not function after a few years. The water can turn green. You might not even be able to use the pool for half the year due to the weather. Once you add up all the money you spend on the pool and consider the value of the time commitment necessary to maintain it, you will question whether you will get even a fraction of this money back when you sell the property.
A Chic Interior
Think twice before adding something on-trend to your home. As an example, the shiplap trend has visual appeal at the moment yet it might not stand the test of time. Additional examples of potential trendy interior features that might not age well include brass accents and open kitchen shelves. So don’t be in a rush to renovate your home to make it more modern; the money might be better spent elsewhere to add value to your property.
Converting the Garage Into a Bedroom
Converting your garage into another bedroom seems like a cheap way to accommodate your growing family, a guest or possibly even a tenant. The average buyer desires a garage when buying a home. If your home does not have a garage, you will undoubtedly receive fewer offers when the time comes to sell.
An Abundance of Landscaping
Some homeowners spend thousands or even tens of thousands of dollars on landscaping and fancy exterior features. A fountain, pond, waterfall or fancy flower bed would certainly look amazing yet it will be challenging to get any of the money you spend on these items back in the long run. When in doubt, resist the temptation to spend lavishly on any type of home upgrade. Perform your due diligence before committing a single penny to any home renovation.