Whether for resale or for personal enjoyment, home renovation projects have the ability to make or break a home’s return investment. Surprisingly, some of the most popular home renovation ideas actually detract from the home’s value, which lowers the homeowner’s return investment.
When it comes to remodeling for the purpose of resale, be practical and avoid these top five remodeling disasters:
1. Home Additions
Despite the added square footage home additions provide, there is only a 56 percent return investment. The additional square footage is not enough to compensate for the expense of city code permits, zoning permits, materials, and labor.
Instead of looking to build outwards, look to build upwards, meaning you should look to utilize every available area in your home to its full potential. If you have an attic space or unfinished basement space, they should definitely be finished because they add immeasurable value.
Finishing the attic or basement space can be a perfect area to rent out, which offers a supplemental income, or can be used as a “mother-in-law” space. Potential homebuyers will be extremely interested in these options, because they have the choice to utilize the space for themselves, or rent it out. As a seller, these ideas make your home much more valuable.
Look to finish the spaces with clean design touches such as hardwood flooring, freshly painted walls, new windows, and, if possible, a small kitchen or kitchenette. Check out hardwood flooring installation in Los Angeles or wherever you’re located to make the renovation as easy as possible.
2. Bedroom Conversions
The amount of bedrooms are often the main selling point for a home, thus converting a bedroom into something else, or getting rid of it all together can severely hurt your home’s value. Using a bedroom as an office, playroom, or sewing room is fine, for as long as it has a closet, potential buyers will be able to envision it as a bedroom. However, if the closets are removed, the space cannot technically be listed as a bedroom. Plus, homebuyers will not appreciate having to add in a closet in order to acquire extra storage space.
3. Hot Tub
Although having a hot tub is an impressive feature, the amount of money it costs to install one will not generate enough on the return investment. Even though it is an attractive selling point, it still is not worth enough to add a significant amount of value to your home.
4. The Backyard
Curb appeal is definitely important to a home’s resale. However, an overdone home can detract from the value as much as a poor, dilapidated curb appeal can.
Homebuyers are typically looking for a home that is effortlessly beautiful. Stick to low-maintenance landscape because it appeals to the majority of buyers. It’s both beautiful yet easy to maintain.
5. Textured Walls
Most homes have subtle texture on the interior walls, which is not a problem. But, walls that have been treated with additional texture such as concrete, wallpaper, or tissue paper usually is not appreciated by the majority of homebuyers.
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