The primary goal of any home renovation is to improve your living environment. The secondary goal is to increase the value of your home. That will only come into play if and when you sell your property or get an appraisal for a refinanced mortgage. Unfortunately, not every renovation is a guarantee of a return on your investment.
These are the kinds of renovations that can hinder your investment:
A kitchen remodel is the most popular kind of renovation for homeowners. At the low-end, that removal could just be about replacing cabinets and countertops but not changing much else. The high-end kitchen remodels can involve knocking down a wall and installing an island. What you have to keep in mind with your kitchen remodel is proportionality. You don’t want an extravagant kitchen to overwhelm the rest of the house. For instance, if a home is only worth $200,000 and you spend $100,000 on a new kitchen, then you probably won’t get that money back in terms of value if the rest of the house remains the same.
Badly Designed Additions
Adding a room can certainly add value but you have to think about the design and placement of that room. You don’t want a guest bedroom that has a bathroom everyone in the house uses. You also don’t want to add a second floor if all the homes in your neighborhood are split level. The best addition should look like it was part of the original design.
In-Ground Swimming Pools
Swimming pools can be a great addition especially if you’re planning on raising a family in your home. However, when it comes time to sell you might find that the pool is a turn off for a lot of prospective buys. Young families with babies could see those pools as health hazards. They are also very expensive to maintain. If you plan on staying in your home for the next 10 to 20 years, then go for it. Otherwise, think ahead.
You might like quirky wallpaper or tiling. Maybe you like a built-in feature like an aquarium. Those are the kinds of customizations that can certainly make your home a terrific environment for you. But again, you have to think ahead. Just because you like purple doesn’t mean prospective buyers will like it. Anything that they’ll have to remove and replace is an additional cost to them that could hamper your asking price. That is something you want to avoid at all costs!