Home Improvement Projects That Don’t Add to Your Home’s Resale Value
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Home improvement is a common way to improve your living space and make your house more appealing, especially to potential buyers. However, not all upgrades increase your resale value, and some actually cost you money in the long run.
One of the biggest mistakes homeowners make is putting too much money into high-end renovations that aren’t likely to pay off. For example, if you spend thousands on unique light fixtures and other expensive materials that your neighbors don’t have, it won’t add much value to your home. Also, don’t go into debt to finance your renovations. That’s just not a good idea for your wallet, but it’s even worse when it comes to your resale value.
Many people renovate their homes based on what will appeal to a future buyer, but this shouldn’t be your main motivation. Your comfort and enjoyment of your home should come first. If you renovate solely to add a bedroom or bathroom because you want to live in a more spacious home, that’s okay too. But if you’re trying to boost your home’s resale value so you can sell it later, you’ll end up spending a lot of money on improvements that will have little or no impact on how quickly you can get a good price for your house.
According to Houzz, a home improvement website, homeowners spent more than $19 billion on renovations in 2017. This is an increase of more than 50 percent since 2010, when the housing bubble burst and homeowners pulled back from spending. The increase in home improvement spending is largely driven by an aging population of homeowners who are more likely to have equity in their homes and are financially capable of paying for renovations.
In addition, rock-bottom interest rates have made borrowing money for a home improvement project more affordable. And a lack of new construction has caused many homeowners to look for ways to improve the livability of their existing homes.
Popular projects include adding bedrooms and bathrooms, installing patios or decks, converting garages into living space and constructing fences. Remodeling Magazine reports that the number of homeowners building decks and putting up fences is increasing at the highest rate, followed by those creating outdoor kitchens and adding windows.
Depending on the size of your renovation and your budget, you can choose from a variety of contractors. Some offer low prices while others charge more. Before you hire someone, check their credentials by visiting their website and verifying their license, insurance coverage and business references. You may also want to consider utilizing an aggregator that provides you with multiple quotes from contractors for the same job.
In the past, a fascination with Victorian style inspired some homeowners to historicize their suburban houses by putting in decorative elements such as elaborate molding or columns. But this trend has waned as a result of a more streamlined aesthetic and the availability of low-cost faux finishes. It’s best to stick with more neutral styles that will appeal to a broad audience.