When considering making changes to your home, you may wonder how those changes will affect your property value. After all, you want to make sure that any investment into the house is money well spent. However, it’s important to understand that not all home improvements are created equal. Some home improvements may need to do more to boost property value. Here are a few popular home improvement upgrades that won’t necessarily increase your home’s resale value.
1. Home Improvements that Don’t Boost Property Value: Installing a Swimming Pool
A swimming pool is an excellent addition to any home, and your family might enjoy having a place to relax and unwind on a hot summer day. However, don’t expect a pool to boost the value of your home. Some potential buyers may be turned off by the thought of having to maintain a pool, and having a pool may also raise home insurance premiums. Especially if the family has young children, prospective buyers might consider the pool a safety concern.
If you’re planning to stay in your house for years and have the space and budget, installing a pool is a wonderful way to enjoy time at home with family and friends. When you list the property for sale, don’t expect the swimming pool to raise its value.
2. Adding More Square Footage
Building an addition onto your home is one of the most expensive home renovations you can undertake – and unfortunately, a build-out only sometimes pays off when it comes time to sell. Potential buyers often prefer factors like location, school district, and lot size more than they shop for square footage. Unless you’re adding an extra bedroom or bathroom (which can increase the home’s value), you might want to think twice before starting a home addition solely to boost your property value.
3. Luxury Kitchen or Bathroom Renovations are Improvements that Don’t Boost Property Value
If you’re planning on selling your home soon, renovating your kitchen or bathroom can significantly boost your resale value. These are two rooms that potential buyers always look at closely, and even minor updates can make a big difference in how much they’re willing to pay for your home. However, choosing high-end appliances and luxury upgrades won’t generate a good return on your investment.
Updating a bathroom to remove the tub and install a spa-like shower stall may appeal to you. However, potential buyers are more likely to appreciate a bathtub. Luxury marble countertops are beautiful and durable, but most homebuyers aren’t shopping for luxury features, and you won’t be able to recoup the cost during the sale.
None of these projects are likely to boost your property value – but they can still be worth it for your family to enjoy. If you’re planning on staying in your home for the long haul, adding features that will make your life more enjoyable is a smart investment. Even if you’re planning on selling soon, minor updates like painting or renovating the kitchen will help increase the sale price of your home without breaking the bank. Before undertaking major projects, talk to your real estate agent to learn more about what prospective buyers are looking for.