Beware of home renovation projects that may lower your home’s value.
There are a lot of things that can help determine your home’s value. The location, features and existing condition of your home and the renovation projects that you have undertaken are just some of the factors that may ultimately affect its value.
Home Renovation: How It Affects the Value of Your Property
A lot of homeowners renovate their homes to increase the value. While it may be tempting to do so, you need to know that there are some home improvement projects that may actually lower your property’s value. What are these costly mistakes and how can you avoid them? Here’s what you need to know.
Removing or converting a bedroom. While there is no stopping you from converting your spare bedroom into a gym or a home office, you need to consider that the number of bedrooms directly affects the value of your home. So, if you are thinking about selling your home anytime soon, make sure that the changes meet the building codes for a bedroom to reduce any negative effects.
Installing a pool. While adding an in-ground pool can increase your home’s value by up to 11%, building an above-ground pool can lower your property’s worth by about 2%. This project can also limit the number of people who will want to purchase your home since it may be seen as a liability for families with young children.
Over-the-top and overly personalized renovations. While a glitzy kitchen and a luxurious bath complete with all the amenities you can ever think of may be your idea of what these rooms should be like, not all homeowners will appreciate your taste, especially if the cost of these projects will be passed on to them. For best results, opt for modest remodeling projects such as installing new flooring, sinks, countertops and toilet and updating your cabinets if you plan on putting your house on the market anytime soon.
Installing a satellite dish. If you are planning to have a satellite dish installed, make sure you put it where your prospective buyers won’t see it. Otherwise, you’ll risk damaging your curb appeal and lowering your home’s dollar value.
So, which home improvement projects should you undertake to increase your home’s value? According to a survey conducted by the National Association of Realtors in cooperation with Hanley Wood, one of the ten largest business-to-business real estate media companies in the US, installing fiber cement replacement siding tops the list with 78% of costs recouped upon resale. Installing a steel entry door replacement, a mid-range attic bedroom and doing a minor kitchen update closely follow suit with 73%, 72.5% and 72.1% of costs recouped upon resale. Remember, not all home improvement projects will work to your advantage so take these things into consideration before renovating your home.