Did you know that not all home renovations are worth the time or money they require? In other words, you probably won’t see a return on your investment, or at least one that is worth your while. If you plan to sell your home in the next few years, be very choosy about what you sink your money into while you still live there. Even though a renovation seems like a good idea, it often doesn’t give you the return you would have hoped to get.
Swimming Pools are a Sinking Investment
Swimming pools seem like such a luxury and even a great selling point for buyers. This may ring true for some, but not all buyers. Unfortunately, though, no matter how bad a buyer wants a pool, they often are not willing to put the money out for it. Generally speaking, sellers see about a 33% return on the money they put into a pool. Unless you really want that pool for yourself and don’t care about the return, skip this renovation/addition to your home.
Converting a Room is Harmful
Sometimes a home has more bedrooms than we need. If you are thinking about converting that room into a hobby room or home office, don’t go overboard. Of course, you should make renovations that will make your home useful for you now. But thinking about the future, a bedroom will give you a much greater return on your investment. If you make the changes, make sure you can still make the room a bedroom when it’s time to sell.
For example, don’t get rid of the closet. You’ll need that in order to classify the room as a bedroom. You should also avoid knocking down any walls or making any other drastic changes that would decrease the number of bedrooms you can use in your home listing.
Finished Basements Aren’t Worth the Money
Again, finished basements are a luxury, but it’s one that buyers aren’t willing to pay for most of the time. If you want to finish your basement because you need the space, go for it. However, don’t sink a lot of money into it. If there are any renovations or work you can do yourself, do it. This way you can avoid overpaying contractors to do the work for you.
Generally, sellers see a return of about 50% of their investment when they use a contractor to finish the basement. You’ll have to figure out your break-even point as far as time and money. How much use will you get out of the basement while you still live there? Does that make it worth it or could you do without it knowing that you won’t get a return on your investment?
Major Kitchen Changes Don’t Pay Off
Lastly, major kitchen renovations don’t give you the return on investment you might want either. Kitchen renovations are among the most expensive renovations you could do. This is yet another renovation where you might only see 50% of your expenses returned when you sell.
Rather than doing a full-blown kitchen renovation, focus on the changes you really see as necessary. Is your stove and oven outdated? Have the floors seen their day? Focus on those areas, renovating the things that need it the most, leaving everything else untouched. You never know when others will even desire your renovations. Everyone has a personal opinion. If you spend all this money on a new kitchen and then it’s not well received, you might even see much less than a 50% return.
Before you make any home renovations, talk to a professional. Ask their opinion on the return on the investment you might make. Also, ask them how buyers might receive the changes. If they don’t think it’s worth it, don’t do it. You’ll walk away with less money in your pocket and nothing to enjoy because you’ll move before you can fully enjoy the work you paid for on the home.Click to See the Latest Mortgage Rates»