Renovating, remodeling, and improving your home can be excellent for gaining extra space or giving an older home a makeover. The day may come when you want or need to sell. It’s important to realize that not all home improvements are created equal. Some renovations add resale value to your home, and some do not. Which home projects aren’t good for resale value and may make it more difficult to sell? Here’s how to tell the difference.
Renovations with the Highest Resale Value
Particular home improvement projects boost your resale more than others. Remodeling kitchens, bathrooms, outdoor improvements, roof, and window replacement generally have the best financial impact on resale.
But, some projects can negatively affect resale value.
Which Home Projects Aren’t Good for Resale Value?
Almost any project has the potential to affect resale value negatively. The general rule is that the more the changes suit your particular lifestyle or taste, the less likely they’re to impact resale positively. It doesn’t’ mean you shouldn’t personalize your home improvement. It just means that you shouldn’t expect it to add value and anticipate that it might make it more difficult to sell.
Here are some general indicators that a project might negatively affect resale.
Unless you’re in a very high-end home, the highest-quality upgrades often don’t have the return of mid-range improvements.
Rooms that Don’t Fit the Floor Plan
Converting a back patio to a family room may be an excellent way to add space. But, if your dining room window peers into the family room, it probably won’t be well-loved by future buyers.
Buyers like to have garages. While it may give you much-needed space, converting this space won’t increase the home value and may make it more difficult to sell.
Installing Swimming Pool
When it comes to a swimming pool, it could prove to be more of a hindrance than a help. Some buyers may see it as a safety hazard or maintenance they would rather not have. Another thing to consider is whether it’s usable most of the year.
Consider where you live. A pool may be real selling points in parts of Florida and California but could be a serious liability in Minnesota or Wisconsin.
Other Factors to Consider
Even if you do the right kind of projects, you aren’t guaranteed a high return on your investment. Here are other factors to consider before deciding which projects to complete.
- Your changes should conform to the neighborhood. While you don’t want to have the cheapest renovations in a home, you want to be sure that it is in line with the style of the house and area.
- Upgrades to a newer home won’t have the same impact as in an older home. A kitchen upgrade for a newer home won’t render the same return as in an older home.
- Any upgrades should keep in sync with the rest of the house. Focusing narrowly on one room can be a mistake. If the home was updated thirty years ago, consider spreading the budget out over the whole house for the biggest impact.
- Stay within the price range for similar homes. Spending $30,000 remodeling a kitchen with top-of-the-line appliances in a home that costs $150,000 won’t have nearly the return the same remodel would in a $500,000 home.
Be Realistic About the Value of Home Improvements
Most home improvements add value to your home, but some can be a hindrance. As long as you stay realistic about the value of home improvements, you’ll add value and enjoyment to the home while you live there.
Do you live in the Northwest Arkansas area? Are you considering renovating your home? CLW Construction Services has the expertise you need to get your project off on the right foot. We specialize in kitchen and bathroom remodeling, exterior and interior upgrades and repairs, and more. Contact us today, and let’s discuss your vision.