Home Renovations That May Not Be Worth It
DAILY REAL ESTATE NEWS | WEDNESDAY, JULY 12, 2017
Not every improvement made to a house will ultimately raise its value. Homeowners who are looking for projects that will pay back at resale would be smart to consult a local real estate professional to determine whether the project they have planned would help boost their home’s value.
Here are a few projects that may not pay as much back at resale as others, according to AOL Finance:
The Insider’s Guide to Home Improvement Projects: NAR’s Remodeling Impact Reports
Home office remodels.
More people work from home nowadays, but that doesn’t mean they necessarily want a dedicated office. As such, investing more than $20,000 in a new work space may not be worth the expense when it comes to selling. “Instead of a great place to work, [buyers may] see it as a room they’d have to remodel should they want to use it for something else,” AOL Finance notes.
Master bedroom upgrades.
Homeowners may be drawn to visions of a grand bathroom, walk-in closet, custom cabinets, and a sitting area in their master bedroom. But the expense may be way more than what a homeowner will net at resale. “Between the amenities and materials and the cost of reconstruction, you’re going to at least pay thousands for an upscale addition,” according to the article. “Your return on investment, however, is about half of that amount.” Instead of a complete renovation, homeowners may be able to find simpler ways to enhance the space.
You’ll likely shell out more than $50,000 to add one and net only about half that in a return, according to AOL Finance. Many buyers may not perceive the sunroom as a functional room and, therefore, might not be as willing to pay extra for a home that has one.
Homeowners who opt to add entertainment rooms may want to brace themselves for the fact that the payback at resale may not be nearly as much as what they paid to add it. Special-purpose rooms give the appearance of adding value to a home, but not everyone will opt for the same type of use that the owner might. As such, the added movie theater, game room, or kids' play area may require more upfront costs than the extra value it’ll bring at resale.
Source: “8 Home Improvement Projects That Are a Waste of Money,” AOL Finance (June 29, 2017)