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Articles and Advice

Renovations That Can Decrease Your Home's Value

Home renovations are costly and time-consuming. So before you start hammering, let's cover the renovations that may not be worth it.

Your home is a special place where you can relax after a long day. While wanting to make home improvements that increase comfort and value is normal, some renovations can end up costing you money in the long run by decreasing your home's resale value. Take a look at some of the riskiest home investments that may not return your money.

  1. Wall-to-Wall Carpeting
    While wall-to-wall carpeting provides a cushion under your feet, it shows wear-and-tear and stains much faster than hardwood floors. Today's home buyers want hardwood floors that reflect warm tones and updated design style. Both real hardwood and laminate floors can increase your home's resale price by 5%.

  2. Too Much Wallpaper
    With busy textures and patterns, wallpaper can leave a bad impression on potential homebuyers. While you may love it in your home, homebuyers may view it as a potential nightmare that will cost time and money to remove. Too much wallpaper may cost you a sale when a homeowner wants a move-in-ready home.

  3. Bright, Bold Paint Colors
    While some people are inspired by bright, bold paint colors, others are over-stimulated and intimidated, especially if they lack design experience or vision. To boost your home's resale value and to speed up your sale, it's best to keep a neutral palette so homebuyers can envision themselves living in your home.

  4. Lavish Lighting Fixtures
    With such a variety of beautiful light fixtures, homeowners often choose lavish ceiling-mounted fixtures, chandeliers, and pendants. While they may love the look, potential homebuyers may be turned off by fancy features and glitzy finishes. It's best to choose lighting fixtures that appeal to a variety of buyers when you're ready to sell.

  5. High-End Kitchens
    Many homeowners invest big bucks in a kitchen remodel, but this is a costly investment that doesn't always pay off. In 2020, the national average for a major kitchen remodel was $68,490, but the resale value was only $40,127. If you're planning to sell your home, make sure a costly kitchen remodel gives you a good return.

  6. Luxurious Bathrooms
    An upgraded bathroom can certainly add value to your home, but don't get carried away with the idea of luxury. Potential buyers may be scared off by over-the-top, luxurious features and finishes that are hard to clean and maintain. Before installing a whirlpool tub, rain shower, and crystal chandeliers make sure your investment will pay off.

  7. Home Office Conversions
    While a home office may be beneficial during the COVID-19 pandemic, it may not be in demand when everyone returns to the office. If you have an extra room that's rarely used, a home office may be a good idea, but converting a bedroom to a home office will likely be a costly mistake when you decide to sell your home.

  8. Sunroom Additions
    Adding a sunroom to your home may be a great way to enjoy outdoor views and warm weather. However, remodeling experts list it as one of the worst home renovations when it comes to a return on your investment. A $75,000 investment in a sunroom may only recoup $35,000 when you sell your home.

  9. Swimming Pools and Hot Tubs
    Contrary to popular belief, adding swimming pools and hot tubs are not the best way to add value to your home. According to HouseLogic, swimming pools and hot tubs only increase home value by 7%, while raising maintenance, utility, and repair costs by as much as 30%.

Before you invest in expensive home renovations, make sure you can recoup your investment costs when you decide to sell your home. Think twice about costly renovations that may cost you profits.

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      The Abby Nelson Team
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