My husband and I insulated the walls of our 1921 Craftsman bungalow in Columbus, Ohio. The project improved the comfort of the home in both the winter and summer. This was because the original insulation, which was available in 1920, did not provide enough heat or cooling in winter.
Unfortunately, our new insulation had no effect on our resale price, despite its obvious improvement in comfort. We spent nearly $5,000 on materials and labor for this renovation. However, the price we received when we sold our home several years later did not reflect that investment.
Some renovations will not increase the value of your home. It doesn’t mean that you should stop renovating your house if the return on investment is not there when you decide to sell. Even though the money spent on insulation will only improve my comfort, I’d still insulate that home again.
There are certain home improvement projects where you can’t expect a return on your investment. Before you start any home improvement project, consider the length of time you plan to stay in your home and whether your goal is to increase its value.
1. The invisible improvements
Our bungalow’s insulation was an invisible improvement, which had to be made but did not appear to alter the appearance of the home. Invisible improvements do not change the appearance of the home like “sexier improvements” such as updating the kitchen, bath or adding a roof. This includes re-grading your yard to prevent water from entering the basement, updating your HVAC system, tuck pointing bricks, chimneys and gutters, as well as replacing gutters.
These improvements are often necessary to protect your home, but you may not be able to recoup their cost when it’s time to sell. You can think of these renovations as an investment to protect your current home value rather than to increase its future value.
2. Swimming pool
Homeowners in Arizona, Florida and Hawaii may have a pool that is a major selling point, but this won’t be true nationwide. HomeAdvisor reports that the cost of installing a pool averages over $27,000. This does not include annual maintenance costs ranging from $500 to $4,000. Many potential buyers will be turned off by these maintenance costs and the work homeowners will need to do to keep their pools sparkling clean, whether they do it themselves or hire someone else to do it. It’s not just the maintenance costs that turn off potential buyers, but also the extra insurance that pool owners will have to buy.
You should only invest in installing your pool when you are sure you will use it and plan to live at the home for a minimum of five years. If you don’t plan to use the pool, then it may be better to purchase a membership at your local swimming pool.
3. Upgrades to the bathroom and kitchen
Is it true that remodeling your kitchen and/or bathroom is a great way to increase the value of your home? Both yes and no. Although updating your appliances and replacing old, dingy tiles will make your home more appealing to potential buyers, you shouldn’t go overboard.
If you have granite countertops, custom cabinets, stainless appliances and ceramic tiles in your kitchen and bath, but the rest is a suburban home with no upgrades, buyers may see it as a house that’s still a work-in progress, not a home they can move into. If you over-improve the kitchen and bath, buyers may think it is not worth the hassle to make the rest of your house match.
4. Built-in high-end electronics
It’s possible to dream of living in the house of George Jetson, where all your electronic needs are already included. But committing yourself to such a renovation could hurt your home’s resale.
This is due to a few reasons. While your own personal movie theater with a remote-controlled, state-of-the art projector may be what you desire, a buyer might see it as a room which will require remodeling as soon as the new owner moves in. Technology advances so quickly that your high-tech electronics will look just as outdated as harvest gold refrigerators and shag carpeting.
Installing high-end electronic devices in your home is a great way to enhance your enjoyment and comfort. However, it is unlikely that a potential buyer will also appreciate the features.
5. Extravagant landscaping
It is important to be gentle when improving your landscaping. Landscape is a key aspect of curb appeal. Making your garden and yard look beautiful and inviting is a good way to attract potential buyers.
A landscaping project that is too elaborate can also turn buyers off. Some buyers may not be able to maintain a large flowering garden, with its sculpted plants and pond. Others who love gardening might not appreciate your vision.
It’s fine to invest in this type of renovation if recreating Versailles gardens will make your home feel more like a house. You should do this work to improve your home, not to recoup the cost when you sell.
Renovations for the right reasons
Many experts consider resale values when deciding whether or not to undertake a home improvement. However, it is important to remember that YOU are living in your home now. It is madness to decide which home improvements you will work on based upon what another may like.
If you are planning to make home improvements, you should consider your comfort, the future plans of your family, and your potential resale price. All of them matter.
