Thursday, July 18, 2013

7 Home Improvements That Don't Add Value to Your Investment

backyard swimming pool
backyard swimming pool (Photo credit: Wikipedia)
Some home improvements add value to your home while others don't. The following home improvements aren't worth the upfront cost.

Installing A New Pool


A new pool looks great and is a welcomed retreat during the summer months, but it is very expensive to install. 

In-ground pools particularly cost tens of thousands of dollars to finish and this cost is rarely recovered from the sale of the home. 

Some buyers may not want a home that features a pool because of the time and money it would take to maintain it. Plus, there may be legal obligations to owning a pool, such as having insurance.


Building a Home Office


Another home improvement that doesn't add value to the home is the addition of a home office. Most home office renovations include new furniture, computer equipment, and re-wiring. 


This can cost thousands of dollars to complete and only about half of this would be recouped when the house is sold. Instead of investing in the equipment, set aside a room that is more like a study with access to the internet and phone.


Updating the Roof and Windows

Replacing the roof and windows is great home improvement that adds beauty and functionality to an older home. Improvements on this scale is not smart if you intend to sell soon. Consider only making these improvements if you intend to stay in your home for at least 20 years. 

If you intend to downsize as the children go out on their own or you are approaching retirement, it may be advantageous to upgrade the roof and windows just for piece of mind. 

If you're interested in buying a pre-owned home, it may be worth it to get the roof, windows, siding and gutters checked for any damages by Ohio Roofing Solutions. Having such a large expenditure out of the way while you are in your money earning years makes more sense. You do not want such a large cost occurring during retirement.


Adding a Sunroom


A sunroom is a nice addition to a home, but you would be better off building a deck. Both of these have a higher rate of return than a sunroom. The sunroom addition would increase the indoor square footage of the home, which would increase the value of the home, but not enough to cover the initial cost of the addition. 


If the potential buyer prefers a sunroom instead of a deck, it would be worth the investment to get the sale.


Remodeling the Master Bedroom

White Mid-Century Bed Frame

The master bedroom is an important selling point for most home buyers. Yet, a master bedroom upgrade doesn't reflect in the selling price of the home. 


Most master bedroom renovations utilize expensive materials, new electronics, and larger spaces. If you are lucky, you would get less than half of your investment back at the time of sale.



Installing a Backup Power Generator


One more home improvement to avoid if you are selling your home or flipping an investment is the addition of a backup power generator. It may be a handy home utility to have when the power is lost, but it doesn't help you sell the house immediately. 


A new home security system from an ADT authorized dealer such as www.homessecurity.com would be a better investment.


Improving the Garage


If the house has a garage, it's best to keep it neat and clean, rather than remodel it. Most garages are large enough to house the car and some tools. 


Expanding it to accommodate another car is one home improvement that should be avoided. The extra space isn't a big selling point, and the cost of the expansion won't be recovered fully.


Adding Carpet


If you have hardwood floors, it's probably best to keep them and avoid wall to wall carpeting. The color and texture of the carpet are just two factors which would stop a buyer from purchasing the home. A better investment would be cleaning or buffing the existing hardwood floor.

Avoid these 7 home improvements that don't add value to your investment. Instead, consider improvements that are worth the cost such as kitchen remodeling, bathroom remodeling, and landscaping.



7 comments:

  1. Wow good one.You always wanted to do right thing with your home but sometimes there are many things that really doesn't change a lot or don't add value to your home and we should avoid them.thanks for the post.

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  2. It's true many upgrades do not affect what your home is worth. If it makes your home more comfortable it still may be a good reason to do anyway.

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  3. Some great tips here that will come in handy as I am renovating a house at the moment. Thanks.

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  4. These are great ideas. I think pools are for luxury and it only puts a negative in my book due to the added costs of keeping it functional.

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    Replies
    1. They are expensive. Put one in if you want to swim. Remodel the kitchen if you want to increase your homes value.

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