Skip these home improvement projects if you are after a return on your investment!
Before selling, it is important to take the time to give your home a make-over to increase its value to potential buyers.
Updating the kitchen, appliances and landscaping are all great ways to increase the appeal of a home, however there are things a homeowner may appreciate and invest in that may not pay off. While the current homeowner may love these kind of home improvement projects, a potential buyer may not be impressed and even unwilling to factor these upgrades into the purchase price.
We have put together a list of five items that generally do not add value to your home. Keep them in mind when buying or selling!
Adding a swimming pool: A pool is a great inclusion for your home if you love to swim, but adding a swimming pool could potentially cut your buyer market significantly. Many people view a pool as an additional and unnecessary cost in a home. According to Direct Pool Supplies the average running cost of a pool is between $800 – $1,200 per year, not including maintenance, fencing and heating costs. After the installation of a pool, plus the ongoing costs, it becomes a significant amount of money that may not be recouped.
The facade option: The first impression of a home is important, so a crazy or ‘different’ façade option can be a huge turn-off. Make sure your façade fits in with the surrounding neighbourhood. Potential buyers have chosen this location for a reason, and as far as home improvement projects go, it will not net you any more money.
READ MORE: 6 WAYS TO INCREASE THE VALUE OF YOUR HOME
Overbuilding for the neighbourhood: Again, potential homebuyers are searching for a home in a particular area for a reason. Overbuilding for the neighbourhood by adding significant extensions, renovations or upgrades to your home will push the price range out of the norm and this can be detrimental to the selling process. While your home will be worth more, people do not want to pay $300,000 for a home in a $150,000 neighbourhood. They would rather pay $300,000 in a $300,000 neighbourhood.
Over-the-top landscaping: Extensive landscaping may look fantastic and draw a crowd, but don’t expect it to increase the value of your home. Home buyers who do their research and recognise the time and effort it would take to maintain are unlikely to place value on a more extensive landscape. Unless you love gardening, keeping it simple and clean is an easier and less expensive option for yourself and your buyers.
Improvements that are expected: Invisible improvements such as plumbing, heating and cooling are expected in a home. As such it is highly unlikely you will recover the costs involved in installing these kinds of units.
For a definitive list of item and their cost vs. value, visit remolding.net.