What to avoid when remodeling your home
When remodeling or upgrading your home, you should stop and look to the future before making any decisions. Someday, your investment will have to be sold. And you’ll want to get everything you’ve put out of it.
There are things that simply damage a home when you try to sell it. These are items that really seem important to you, but most shoppers don’t want.
Example number one is a swimming pool. I would love to have an inground pool in my house. But I know it would not be a good investment.
It’s expensive to clean, maintain, and buyers aren’t looking for pools. Buyers don’t want the hassles or energy bills that come with swimming pools. Lenders do not include common funds in the mortgage appraisal, so it really has no value for your home.
Another thing that can hurt you is expanding your home too much. Yes, buyers are looking for space, but you may have too much space. If you add a family room, you are likely to get an 83% return on your investment. It costs you when you don’t get 100% back. Adding a master suite to a home will earn you a payback of just 80% of the cost of the addition.
It’s even worse if your additions make your home much larger than the ones in your area. This hurts your appraised value, as there are no other homes your size to compare.
You also shouldn’t get too crazy with your changes. Yes, there are many people who would find a basement that looks like a western parlor of yesteryear quite charming. But would they want to buy it? What if the basement were additional storage space and a family room instead?
You would think a home office would be a nice addition. Many people work from home. However, it is probably not advisable to fully outfit a room to be an office by installing a workstation and office storage. You will recoup an average 73% of your investment, according to the National Association of Realtors.
Another thing to avoid is doing too much by yourself. Poor quality or handmade workmanship will not benefit you. I know a couple who painted their new house themselves. The work was not great as you can see paint on the ceiling throughout the house. Also, the colors are quite unusual. To sell your home, you may find that it would have been better to have a professional paint in a neutral color scheme.
Try to keep your decorations in your personal belongings, not in the house itself. Faux finishes are lovely, but if they’re too unusual, they can be a sticking point. You may like unusual colors, but remember that hot pink walls are not for everyone.
When you know that you will sell your home, it helps to spend your time only on renovations that will pay you back. Do the most important projects first.
The projects that show the highest returns on resale are upgrades to siding, windows, kitchens, and bathrooms.
A mid-range bathroom renovation can offer you a 102% return on investment. A luxury bathroom renovation can recoup 93% of the cost. A mid-range kitchen upgrade will recoup about 91% of the cost. Minor jobs return 99%.
Keep in mind that the most important improvements are not the ones that add to your home, they are the ones that maintain the home. Make sure the paint is in good condition, the gutters are clean, and the lawn is well cared for. Keep track of annual check-ups, like heating and air service, and be sure to include the information when trying to sell your home. A well-maintained home is always a good seller.