We all have an idea of our dream home, and some of us are willing to tackle significant renovations to make that dream a reality. But when it comes time to sell your home, those extensive remodels may not add value to your home; they may even detract from it. Some updates will discourage buyers and offer a poor return on investment. Here are four home improvement projects with a low ROI.
1. Projects with a Low ROI: High-Maintenance Landscaping
Blossoming seasonal shrubs and trickling koi ponds contribute to a tranquil garden you enjoy, but to some prospective buyers, all they will notice is the maintenance required. Landscaping is expensive, and not everyone is willing to take the time and effort to care for the high-maintenance foliage you planted in the garden. Extreme professional landscaping is sometimes a deal-breaker for potential homeowners. The upkeep or the removal can be more expensive than their budget allows.
2. Install a Swimming Pool
A swimming pool, though enticing to your family, requires a commitment to maintenance and upkeep. While you may be willing to clean the pool and maintain the PH level, your prospective buyer could be looking for a home that doesn’t come with the added effort. Adding a pool to your backyard is a costly home improvement project that may not offer a good return on investment.
3. Inconsistent Luxury Upgrades
Having the fanciest appliances and fixtures sounds like a home improvement that should add great value. Unfortunately, this isn’t always the reality. Upgrades should be consistent throughout the home to avoid the high-end kitchen looking out of place. Because full kitchen remodels are so expensive, they rarely pay for themselves in increased property value.
Random upgrades can negatively affect the property value as buyers view the un-updated rooms as areas they need to improve themselves. It’s better to do consistent mid-grade updates throughout the living spaces instead of luxury upgrades in one room while neglecting the rest of the house.
4. Personal Home Improvement Projects May Have a Low ROI
When upgrading your kitchen, don’t choose an expensive patterned backsplash that features a geometric design in lime green. While you may love looking at your unconventional backsplash, buyers may not. Making personal additions and upgrades is a risky home improvement project as not everyone is willing to pay for your favorite colors.
When considering upgrades, keep the value of your home in mind. Think about the type of buyer you’d like to attract, research homes recently sold in your area, and learn about the features of those properties. The research will ensure that your home improvements earn the best possible return on investment.
TUFF Home Inspections provides inspection services to homebuyers and sellers in New Jersey. Contact us to schedule an appointment.