At some point in their lives, homeowners will think about making one or two renovations to their property. Danielle Hale, the chief economist at Realtor.com, told MarketWatch that people generally tend to make home improvements when they first buy a house or just before they want to sell. However, the money that you spend cannot always be recouped when you do decide to sell your house.
There are adjustments that make financial sense but there are others that can actually hurt your home's value, as Go Banking Rates recently listed.
Here we take a look at 10 of those renovations to avoid if you do not want to hurt your home's value:
1. Splurging on lavish lighting fixtures – It is easy to fall in love with unique or lavish light fixtures, and while it is tempting to install that hanging pendant or over-the-top ceiling mounted light that is all the rage at the moment, simple is best. "Whatever is in vogue today will look dated 10 years down the road when you are ready to sell," said Alon Barzilay, founder of real estate development company Barzilay Development.
2. Overdoing it on the wallpaper – Many homeowners overdo the wallpaper without realizing just how much work it takes to remove it, which could be a deterrent to any potential buyers who do not want to be left having to deal with your wallpaper mishaps. Rather opt for fresh paint in neutral colors.
3. Carpets in every room – While laying down carpets in your home have their perks, the negatives far outweigh the positives. For starters, carpets are quick to wear down and show damage and unless you are prepared to take on the massive job or replacing them, they can make your home look shabby. Your color scheme and textures are also very personal and might not match those of potential buyers. Furthermore, new hardwood floors can up the sale price of a home by up to 2.5%, noted home remodeling expert Alex Biyevetskiy.
4. Bright paint colors – While you might be indulging your artistic side and expressing your personal style when you lay the bright colors of paint onto your walls, potential buyers might be less enthused. If you have plans to resell, however far down the line they may be, rather choose neutral colors when you do repaint your home.
5. A flashy kitchen – Remodeling the kitchen is every homeowner's dream and while it is tempting to splash out on something a little more high-end, the truth is the resale value is usually less than what you will invest. Instead of redoing the entire kitchen, rather focus on the areas that need some TLC.
6. That luxurious bathroom – You might be indulging fantasies of relaxing in a luxurious bathroom that comes complete with whirlpool tubs, but your over-the-top remodeling could scare off potential buyers who do not share your enthusiasm for the personalized finishes. Keep things simple.
7. A home office – A dedicated home office sounds appealing but it could end up costing you, especially if you have converted a bedroom into your working space. The conversion takes money that could go to waste if a potential buyer prefers to have the bedroom space.
8. Adding a sunroom – A sunroom can add more light, create a sense of space and bring the outdoors to your home, but while that might sound appealing, adding a sunroom to your home can also cost you when it comes to return on investment. Think long and hard before committing to a sunroom, especially if you intend to sell your home.
9. Built-in or customized electronics – In theory that in-house theater sounds like a great investment for your home, but it might actually just be seen as a waste of space to potential buyers who may have other plans for a room. Any personalized renovations tend to decrease your home value. Remember built-in technology can become outdated very quickly.
10. A swimming pool – Many homeowners believe they can add value to their property by adding a swimming pool, but it can actually hurt your home's value. Not only can it deter potential buyers, but the costs involved in building and maintaining a pool are not worth it.
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