Home improvement season is right around the corner, and over the years I've seen quite a few owners make home improvements with the assumption being that they’d recoup their investment when they sold, only to find that the improvements didn’t increase their home's market value, and sometimes even decreased it.
There are many variables involved in how home improvements affect market value. Some relate to the quality of the improvements, while others relate to an individual owner's tastes and needs. Here are a few examples of home improvements that can potentially decrease the value of a home:
Over-the-top landscaping: While a well-manicured lawn and tasteful landscaping can boost a home's curb appeal, excessive landscaping can be a turn-off to potential buyers. Overgrown shrubs and plants that require a lot of maintenance can also detract from a home's overall appeal.
Over-customization: When homeowners customize their homes with unique or unusual features that don't appeal to a broad range of buyers, they risk limiting their pool of potential buyers when it comes time to sell. For example, an overly specific themed room or a customized feature that is expensive to remove can be a turn-off to potential buyers.
Removing bedrooms: Converting a bedroom into a larger living space or expanding a kitchen might make sense for your family's needs, but it can decrease a home's value in the eyes of potential buyers who need more bedrooms.
Poorly executed DIY projects: While there's nothing wrong with tackling home improvement projects on your own, a poorly executed DIY project can actually decrease the value of your home. Homebuyers may be put off by a botched renovation job or shoddy workmanship.
Swimming pools: While many people love the idea of a swimming pool, they can be costly to maintain and require a lot of upkeep. Some homebuyers may be turned off by the added expense and responsibility of a pool and see it as a liability instead of an asset.
It's worth noting that the impact of these home improvements on a home's value will depend on a variety of factors, including the local real estate market, the quality of the work, and the preferences of potential buyers.
If you are thinking of renovating or adding on to your home, you’re welcome to give me a call first. From experience, I can help you determine how the improvements are likely to affect your home’s market value, so you can develop a strategy that gives you the results you want. Any information I provide is free of charge and without obligation.
I look forward to getting the conversation started!