There are many reasons you might renovate your home. Maybe it's finally time for your dream kitchen or a luxury bathroom, or you want more space for the kids and grandkids to stay when they visit.
However, don't assume that every dollar you spend will pay off in equity. There are many renovations that can diminish your resale value. Lifestyle may be your first consideration, but home renovations are expensive. It's nice to know your investment will pay off.
Smart homeowners should consider these 11 renovations that won't pay off when it's time to sell.
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Did you know if your air conditioner stops working, your homeowner’s insurance won’t cover it? Same with plumbing, electrical issues, appliances, and more.
Whether or not you’re a new homeowner, a home warranty from Choice Home Warranty could pick up the slack where insurance falls short and protect you against surprise expenses. If a covered system in your home breaks, you can call their hotline 24/7 to get it repaired.
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Converting your garage into a living space
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More rooms are better, right?
It turns out that converting your garage into a bedroom, office, or man cave can turn home shoppers away. Buyers want that space for parking or storage, especially if you're in an area with limited street parking.
Turning a converted garage back into a storage area is surprisingly expensive, and many home buyers don't want to take it on.
Installing an in-ground swimming pool (outside of the Sun Belt)
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If you live in a year-round hot climate, a swimming pool can make your home more attractive to buyers and can increase the price by slightly over 20% per square foot.
However, if pools are rare in your area, you're installing a high-maintenance burden and safety hazard. A fiberglass in-ground pool starts around $50,000.
The average boost for a home with a well-maintained pool is only 5% to 8%, likely much less than what you paid to install and maintain it.
All-white kitchen makeovers
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A pristine kitchen is a beautiful thing. However, many buyers see that sparkling white kitchen and imagine how hard it will be to keep clean.
Home shoppers tend to prefer kitchens with warmth and character. An all-white, minimalist kitchen may seem to lack personality.
If you want to renovate your kitchen, think about forgiving color schemes that make your house feel like a home.
- 18-29
- 30-39
- 40-49
- 50-59
- 60-69
- 70-79
- 80+
Wall-to-wall carpeting
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There was a time when wall-to-wall carpeting was the height of luxe, but most homeowners now prefer hardwood.
Hardwood is easier to clean, less likely to trap allergens, and holds up to traffic. If your floors need replacing, consider hardwood, engineered wood, or luxury vinyl plank in the main living areas.
Carpet is still a strong choice in the bedrooms and closets, just avoid geometric patterns or florals.
DIY bathroom renovations
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Bathrooms put up with a lot. They endure water spills and steamy showers. A little bit of water in the wrong place can cause mold, rot, and bad smells.
While it may be tempting to save money by improving your bathroom yourself, it can cost you. Buyers may see uneven tile, poorly sealed grout, or water stains as red flags.
Converting a small bedroom into a walk-in closet
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Many homes, especially older homes, have small closets. From your point of view, turning a small bedroom into a walk-in closet might be a major upgrade.
Unfortunately, most buyers search for homes based on the number of bedrooms. When you reduce your bedroom count, you shrink your potential buyer pool and lower your selling price.
Bold paint colors and wallpaper
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If you're not planning to sell soon, it's more important to decorate your home in a way that makes you happy than to cater to general tastes.
However, it's good to know that bold paint colors and vibrant and exciting wallpaper tend to turn buyers away.
Most home shoppers prefer neutral colors that allow them to imagine their furniture and knick-knacks in the space.
High-end light fixtures and hardware
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You'll rarely recover your purchase and installation costs for expensive designer fixtures like custom faucets and luxury lighting because most new homeowners replace them anyway to match their personal style.
This makes your investment basically disposable.
Rather than focusing on fancy finishes, your best bet is to invest in well-made, attractive, and reasonably priced fixtures.
Elaborate, high-maintenance landscaping projects
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A koi pond, water feature, complex designs, or expensive plants may make your yard the envy of the neighborhood, but future buyers may see it as extra, costly work.
While there is always the chance your home will go to another garden aficionado, you're limiting your potential market. Most buyers prefer simple, well-maintained yards that they can personalize.
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Built-in electronics and smart home features
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The downside of electronics is how quickly they can go obsolete. You may remember the giant televisions and three-foot-high speakers that were the first in high definition and surround sound.
When you hardwire a system into your home, you're making it more expensive to update or remove. The key to smart home technology is to make it easy to replace.
Laminate countertops
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Are laminate countertops affordable and practical? Yes. Do buyers love them? No.
One area where buyers are strangely and consistently snobbish is on the topic of kitchen countertops. Granite, quartzite, marble, limestone, soapstone, stainless steel, or even butcher block countertops are a better choice than laminate.
In 2023, homes that mentioned laminate sold for 1% less than similar properties.
Bottom line
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The most important thing about your home is that it's where you live. You don't need to think about long-term resale every time you do something to make your space more appealing and useful. However, if you are investing in home improvements, it's good to know where you'll get your money back and where you won't.
Well-maintained homes can sell for about 10% more than similar homes in average condition, so the best thing you can do may be to take good care of the house you have. Along with regular maintenance, considering a home warranty to cover unexpected repairs could be another smart move.
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