Rethinking Renovations: Home Improvements That Don't Always Pay Off

When it comes to personalizing your living space, the sky's the limit. Whether it’s creating an open-concept kitchen or transforming your backyard into a fruit tree oasis, homeowners enjoy the freedom to make their space uniquely theirs. However, this freedom comes with a caveat—some home improvements may not add the anticipated value to your home, especially when it's time to sell.

It's important to distinguish between renovations made for personal enjoyment versus those made with the expectation of increasing home value. While your home should reflect your personal style and needs, certain big-ticket renovations might not yield the return on investment you're hoping for when it comes time to sell.

A Closer Look at Renovations with Limited Returns

Based on insights from Zillow® and the Remodeling 2023 Cost vs. Value Report, there are several projects that homeowners might want to reconsider if their primary goal is to boost their home's resale value:

1. Converting Kitchens into White Wonderlands: Despite the popularity of bright, all-white kitchens, Zillow research indicates that this choice might actually lower your home's sale price. Darker tones, like charcoal and graphite, are currently more favorable among homebuyers.

2. Adding Walk-in Closets: Though appealing in theory, transforming a small bedroom into a walk-in closet can potentially decrease your home's value. Homebuyers typically prioritize the number of bedrooms.

3. Deck Additions: While a deck can enhance outdoor living, the return on investment is approximately half of the initial cost, making it a less lucrative improvement.

4. Garage Conversions: Converting a garage into additional living space might seem like a good idea, but it could actually compromise your home's value, especially in areas where parking is at a premium.

5. Installing In-ground Pools: Pools may seem like a luxury enhancement, but they can be costly to maintain and may not appeal to all buyers.

6. DIY Projects Gone Wrong: DIY renovations can save money, but poor craftsmanship can detract from your home's appeal and value.

7. Luxurious Bathroom Upgrades: High-end bathroom renovations often do not recoup their costs, with upscale remodels returning only about 37% of investment.

8. Wall-to-Wall Carpeting: Carpeting can make a home feel warmer but is less desirable compared to other flooring options like luxury vinyl, which can slightly increase home value.

9. Bamboo Flooring: Once trendy, bamboo flooring now appears to slightly decrease a home's sale price.

10. Laminate Countertops: Despite being an affordable option, laminate countertops can negatively affect home sale prices.

11. High-End Fixtures: While premium fixtures may be personally satisfying, they're unlikely to be a deciding factor for homebuyers.

The Value of Home Maintenance

It's also crucial to remember that regular home maintenance can significantly impact your home's value. A well-maintained home can sell for approximately 10% more than a similar home in average condition. Keeping up with tasks like cleaning gutters, resealing grout, and servicing HVAC systems can make a big difference when it's time to sell.

Final Thoughts

While it's tempting to pursue extensive renovations, it's wise to consider their long-term impact on your home's market value. For those planning to sell, focusing on modest, maintenance-oriented improvements may be the smarter choice.

For a detailed look at the renovations that might not add the desired value to your home, we encourage you to visit the original article on Zillow.

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Jen Holden, Realtor® | Principal The Jen Holden Group of Compass 📱 443.803.7620 (m) | 📞 410.429.7425 (o) ✉️ jen@thejenholdengroup.com 🌐 www.movewithjhg.com