Homeowners who are carefully considering resale value when working on a home generally want to know if a certain upgrade is a good investment or not. Will adding a pool to my backyard be a huge bonus if I ever decide to sell? Could this kitchen customization make or break my resale value? What kinds of rehab options should I think about if I know that I want to sell in the next five years? These are the kinds of questions we hear regularly.
While it is true that there are some great upgrades that have the potential to bump up the value of your home for certain, not every add-on or customization that you decide to tack on to a home is a bonus. Here are a few upgrades that you may be considering, but that are likely to not win you any profit points in the financial department and may even end up losing you money in the long run.
Is there something in your home that is so personalized to your style, furniture or personal preferences that you are not sure if it will be a plus for anyone else? You are probably right. In general, built-in units that are highly customized are unlikely to be a big selling point.
Do you have a room in your home with built-in shelving for your large collection, a home theater or a sports den? While these areas might be your favorite spots in the house, a potential buyer may just view them as needing to be converted into a more versatile space, such as a spare bedroom.
While it might seem like a no-brainer that a backyard pool, especially in a warm climate, will add value to your home, you might want to think again on this one. Pools are expensive and can need extensive maintenance. The value that they end up adding on to a home is often negligible in comparison to how much they cost to install and keep up.
It is true that a substantial increase in square footage may be likely to kick up the selling price of your home, but unless the rise is a significant one, it is not certain that square footage alone will be enough to raise your home’s value. Instead of focusing on pure square footage increases, concentrate instead on universally desirable add-ons and improvements to the existing infrastructure.
Adding a bathroom
Typically, having an additional bathroom built in to your home is a luxury that will cost a pretty penny. Unfortunately, it is unlikely that you will be able to make back what you spent in your bathroom add-on costs when placing your home on the market. Rather than adding a bathroom, think about upgrading the one(s) you already have.
Now that you know what the least lucrative home upgrades are, make your decisions wisely when it comes to those weekend or month-long projects. Investing in your home with an eye to the long-term future is a smart idea that will make you a strategic and savvy homeowner.