As a homeowner, you always want to have your house in the best conditions and with the best amenities.
However, if you will be selling your place in the future, it is important to analyse if the project you will undertake in the house will add value to the property. That’s why we put together the most common renovations that do not add value to your property.
If you do the correct renovations in the house, you can definitely add value to your property when selling it. I will recommend calling a Real Estate Agent as they have the experience and can guide you on which projects you can do in your property to sell it at a higher price in the future.
Many people go on a money-spending spree while renovating their house without minding the cost, hassle and disruption involved; worth the return you’ll reap in the end? Renovating and remodelling the home is not an easy task, and it takes a lot of energy and money to get the job done.
So why spend money without doing research on whether the change will add to its value or not because “a dollar spent should not only make sense but also add value.”
Here we’ll break down the renovations that do not add value to your property. We will explain why these four home improvements won’t guarantee you a better return on your investment or add value as much as you expected.
Putting in a pool
Having an in-house pool is considered a luxury and a social symbol. Still, it can also impact the value of your house negatively.
- Families with small children often consider it a safety concern.
- An in-house pool requires a fair deal of year-round maintenance.
- Many state security guidelines need to be followed, like fence meeting specific height criterion, self-closing gate, appropriate warning sign, etc.
Highly Custom Design Decisions
Want to make luxury home improvements to your home? Remodelling with high custom designs like 3D wallpapers, high-end appliances won’t add value to the house because they are personal choices rather than an essential feature.
For instance, if you spent a lot of time in the kitchen, then spending more money on high-end modular kitchen appliances will be high on your expense list. But if you plan to move in some time, you won’t be able to take these built-in appliances with you because it’s advisable to sell your home with all the fixtures and fittings intact.
Note: Names aren’t everything! Some high-end appliances cost double than average appliances, despite having the same features.
Permanent Bedroom Conversion
Having more bedrooms in your home increases its value. As a result of the pandemic, an increasing number of people are thinking of upgrading that third bedroom into an office, gym, walk-in closet, or introducing more space to the living room.
While it may appear to be a distinguishing feature in your home, ‘but it may end up costing you more than you’d expect with no or little financial rewards.’
There’s nothing erroneous with any of these conversions, but keep in mind that you can’t turn the room back into a bedroom, which will primarily lower your value.
‘However, despite high demand for storage, extra bedrooms can add 15% more to your property value than extra wardrobe space.’ – so, weigh small bedroom storage ideas instead.
Incremental Square Footage gains
While renovating, most people consider that making small changes will cost less and allow them to remodel in the future, but what they miss out on is that these small changes will lead to an awkward floor plan and cost more than usual and will harm its value.
After minor changes, the final floor plan might meet your lifestyle but not necessarily the other person if you want to sell the property in the coming years.
Landscaping a garden
Professional landscaping of a garden is a costly affair and of no use when you have decided to sell your home.
Costing an average of AUS $4,000 for renovation, this home improvement won’t add the expected home value during resale. Rather you will lose the entire money or would be earning the most you invested with no profit.
But some garden renovations like beautiful, tidy plants with attractive blooms will surely persuade buyers to make a better and fairer offer on a property.
Always remember, a neglected yard in the front of the beautiful house will refrain buyers from even entering the property in the first place.
In conclusion, before making any significant change in your property, talk with an expert. Empire Real Estate has the experience to guide you and provide expert opinions on which renovations to increase your property’s price.
Also, always think about if the project will be beneficial only for you or valid for any person. Do not personalise your house as you will have the risk to engage fewer buyers.
Remember, for better results contact your Real Estate Agent or call us. We can do an assessment of your house and we can tell you what are the renovations that do not add value to your property.
Also, If you need a FREE APPRAISAL give us a call or click here.
As a rule of thumb, the property price should increase 2 or 3 times the value of the renovation.