If you want to increase the resale value of your home, you renovate it and add some new features, right?
Generally speaking – yes. But not all features add the same amount of value, and, believe it or not, some of them can hurt the value of your property.
The world of home improvement is full of traps. I mean, filled to the brim. We all want to make our homes truly ours, and a lot of time, that means custom upgrades. But how custom is too custom? What if something that you think is a slam-dunk actually turns buyers away? How can you tell if you’re building equity or just spending money on something only you will love?
Read on and I’ll tell you all about it.
5 Signs That Renovations Might Lower Your Home’s Value
It’s a tough pill to swallow, but some of the projects you poured your heart (and money) into don’t make sense if you’re trying to up your property’s value. Buyers won’t see your vision; they’ll see the extra work and expensive fixes.
Let’s see what will put a damper on your home’s value.
Workmanship That’s a Bunch of Red Flags
Sloppy DIY is one of the fastest ways to turn away potential buyers.
A crooked tile? Patchy paint job? These aren’t huge issues, but buyers will take them as signs of bigger problems. If you’re okay with living with these kinds of mistakes, what else are you okay with that they can’t see? It creates a sense of distrust about the entire property.
They’ll rather walk away than deal with fixing your botched projects.
You might be able to get away with it if you give them a really low price, but if you try to increase the value of the home, then that’s not really what you want to do.
Expensive Features That Don’t Fit the Market
A swimming pool or a home theater is a luxury, and many sellers will think they’ll get a higher price because of it. But a feature that’s perfect in one area might be a deal-breaker in another.
Here’s an example:
If you live in Dallas and you’re looking to sell your house fast, then fast house buyers in Dallas are your best option.
Sure, you could go through the traditional method of hiring an agent or a real estate agency to place your house on the market. You’ll have to decorate it first, even possibly renovate, and wait the usual 30-60 days that houses stay on the market on average in Texas – but that’s tedious, expensive, and it takes time, while not guaranteeing a favorable outcome. Instead, you can sell the house, possibly the same day, to a business that specializes in buying properties in as-is condition for cash. Much more convenient.
In Dallas, outdoor features such as a (luxury) pool, shaded deck, a nice, lush-green garden, and solar will always get you a better deal, while in markets such as Chicago, a finished basement, a new roof, and a closed fence on the outside to protect from the winds will be something Chicago buyers will want more.
How fast the property will sell and how high a price it’ll fetch will be dependent on which house features/upgrades/add-ons are popular in your specific market, so make sure to know your market before spending money on them.
You Took Your Personal Style Too Far
I get it – a neon green accent wall in the kitchen makes you happy. But your personal taste can be a huge liability when you’re selling because (and I’ll hold your hand while I’m saying this), neon green accent walls aren’t really everyone’s cup of tea. Your buyers have their own style, so if you try to force yours onto them, it won’t end up the way you want it to.
Nobody wants to live in a house that looks like it belongs to someone else; they want their own black canvas or a sandbow which they’ll shape in a way that suits them and reflects their ideas.
Turning Bedrooms and Garages Into Something Else
Converting a third bedroom into a walk-in closet or a garage into a home gym might seem like a smart move, but it could also be a big, expensive mistake. The number of bedrooms is one of your main selling points, and if you reduce it, you’ll shrink your potential buyer pool.
A 3-bedroom home will work great for families, but a 2-bedroom one with a fancy closet? Not so much.
The same goes for garages because buyers want space for cars and storage.
Outspending the Neighborhood
This is a classic real estate trap: you ‘improve’ your home so much that it doesn’t even look like it belongs in the neighborhood it’s in. A luxury outdoor kitchen and a resort-style patio are great to have, but if you’re surrounded by modest, family homes, you won’t see that money come back.
Buyers compare homes based on local prices, and they won’t pay a Beverly Hills price when the house across the street is affordable. Go ahead, make the improvements, but keep them in line with community norms.
Otherwise, you’ll price yourself right out of the market.
Conclusion
If you want to build your own dream, kudos to you, but you can’t expect other people to pay more for it.
Before you pick up the sledgehammer and paint, ask yourself if you’re doing this for yourself or if the goal is to sell your house for a higher price.
There’s no wrong answer here, just be honest.
