Many remodeling projects are borne of necessity and reflect the values and needs of the current homeowner, but they do not necessarily add value to the property. Too many homeowners fail to understand this concept and wind up spending money on improvements that will never increase the value of the home should they decide to sell. Which home improvement projects should you consider and which should you avoid at all costs?
Avoid
You might think adding a second story resplendent with a lovely bathroom and walkout balcony is a perfect way to increase the value of your property. In some cases, you may be right but you have to take the neighborhood into consideration first. What are the homes in the area worth? If your renovations are going to make your property the most expensive on the block, you will probably never recoup the investment. Other improvements that do not automatically add value include:
- Swimming Pools- an in ground pool is wonderful if you are not the one maintaining or installing it! As a general rule, pools are bigger detractors than anything else, particularly for families with small children. Some buyers will pass on an otherwise perfect structure for fear of future lawsuits stemming from a pool.
- HVAC – a bad heat and air unit will lower the value of your home, but a new one will not increase it very much. Buyers expect a home to have a good heating and air unit, but will not pay extra just because you have installed a new one.
- Exotic or Extensive Landscapes- it may be beautiful to look at but an extensive landscaping design or exotic plants may be seen as an added headache rather than a bonus.
Adding Value
What type of home improvement project should you consider if you want to add value to your property? Adding a room will increase your square footage, but just remember that you do not want to overdo it. (see above tips) If your home is a small two bedroom in a neighborhood filled with three bedroom units, adding a bonus room will definitely add to the value. Other projects to consider:
- Open Floor Plan- you can drastically improve home values by opening up the floor plan. Simply taking out a wall and combining two rooms can make the home feel spacious and airy.
- Deck or Sunroom- there is a growing outdoor living trend and adding a full deck or sunroom to your home will instantly improve the value.
- Paint- if you want a lot of bang for your buck consider fresh paint. It is one of the easiest, most cost effective improvements and will definitely add value. Remember, keep the colors neutral and hire a professional if you are not experienced with a brush/roller.
Conclusion
As you can see not every home improvement project is created equal. Does this mean you can never have an in ground pool? Of course not, but you have to understand that your $10,000 or more investment will likely be for your own pleasure alone and you will most likely not recoup the cost if you sell the property.
