Are you thinking of selling your home? How much is it worth, and is there something you can do to fetch a better selling price?
The first thing most homeowners think about when selling their property is what improvements they can make to increase the property’s value.
Some people are so focused on fetching the highest selling price that they get over-zealous with the updates.
This is often done without realizing that some upgrades don’t add value to the property.
Unless you’re involved in real estate and have an in-depth view/idea of what people are looking for, you may make an upgrade or remodel mistake that costs you money and doesn’t improve the selling price.
That’s not to say that you shouldn’t do any upgrades, but rather that you should know which upgrades are financially viable.
The first areas of the home to get renovated when trying to increase property value usually include the bathroom, kitchen, and entertainment area.
Of course, how urgent the sale of your home will also come into play when deciding whether or not to remodel it or not entirely.
If you need the sale to go through as quickly as possible, you may not want to waste time and energy on upgrades.
However, if you have the time, you may be tempted to carry out costly renovations in hopes of a heftier sale check.
6 Home Upgrades to Avoid When Trying to Increase Property Value
Below is a quick look at just six home improvements that many people mistakenly believe will skyrocket their property value when in fact, it does not.
1. Installing a Swimming Pool
Swimming pools are fun, but they aren’t a cheap endeavor to install or maintain. A pool may increase your home’s value, but you won’t receive much return on your investment.
According to Bankrate, a pool can increase your home’s value by around 7%, but that’s only if your home is in a higher-end area. In addition, your property is in a place where the climate is hot, and specific safety mechanisms are included in the pool’s design and setup.
2. Not-so-visible Upgrades
“Invisible” upgrades are improvements to the home that might make it a better place to live or more comfortably but aren’t immediately visible to potential investors. Think about the installation of new plumbing for the HVAC system or similar.
Most buyers would expect these to be in working order and may not feel it is warranted to pay more because you have had all the plumbing upgraded. If you want to increase the home’s value, make the upgrades visible to investors – skip on the invisible upgrades.
3. Going Overboard for the Neighbourhood
Most families grow, expand, or want a little extra space for luxury’s sake. While building a conservatory or extra bedroom may be great for your space, keep in mind your neighborhood.
If you invest in home improvements that make your home bigger and more expensive than others in the surrounding neighborhood, you may inadvertently outprice your home. As a result, it may no longer be the ideal home for people typically interested in your neighborhood.
4. Installing Carpets
Some homes have carpeting, but it’s not an attractive feature to a buyer. It’s especially unattractive to buyers with pets and children. Carpets trap dust and allergens.
They can be unhygienic and cost a fortune to keep clean. Nowadays, homeowners are leaning more towards restored wooden floors and tiles. If you’re thinking about installing carpeting to increase the value of your home, it may just have the exact opposite effect.
5. Mismatched Upgrades Within the Home
When doing upgrades within the home, be careful to ensure consistency throughout the home.
If you have an old-fashioned living room and a high-end state-of-the-art kitchen, it won’t increase your home’s value as much as you hope it will.
Remodeling your home will only increase the intended value if it’s consistently carried out throughout the house. Many home buyers won’t pay more for a property simply because certain areas have been upgraded, leaving the rest of the home’s appeal lacking.
You will often find that you won’t be authorized for a secured loan for such upgrades either, as Mortgageable makes clear, loans that use collateral have a number of terms to abide by if being used for home renovations.
6. Reducing Living Space to Incorporate a Large Main Bathroom Suite
Bathrooms seem to have a certain draw to them – after all, they are a space for relaxation, rejuvenation, and personal hygiene. They are an essential element of every home.
Everyone wants a flashy bathroom, but you must be careful when it comes to cost. It can sound attractive when you hear of a home with a large main bedroom’s expansive bathroom suite.
These usually feature a full bathroom and walk-in closets and all the bells and whistles of a luxury bathroom. One of the most significant features is space – bathroom suites take up a lot of space.
Some homeowners chop into the existing living space or remove a bedroom to create space. Keep in mind that this type of upgrade may detract from the home’s value. A home with more bedrooms is typically worth more than a home with bigger bathrooms.
The best way to ascertain if an upgrade to your property will add value is to think like the buyer. For instance, some installations, such as a pool or wooden deck, may look like extra maintenance and costs to a buyer.
After all, wooden decks need regular maintenance, and pools can be costly to run and maintain over time – especially if tough financial times strike. Much the same, if you increase the home’s value to the extent that it’s outpriced compared to the surrounding homes, you may struggle to find buyers.
In addition, improvements that are not immediately visible often don’t increase the home’s value (think heating systems and the like).
Give your intended remodeling projects some thought before committing to a plan. Sometimes consulting with a real estate agent on the most viable upgrades can also help you make a better decision.