Depending on the age and condition of your home, renovations can be a great way to increase its value and make it more appealing to potential buyers. However, not all renovations are created equal, and some don’t give homeowners the return on investment they are hoping for.
As a humorous example, Michael Jordan’s home in Chicago that has been listed on the market since 2012. As a general rule, mini-putt greens in a basketball-shaped pool are a no-go for return on investment. But hey, if it’s what you want, I’m not stopping you! Aside from that, lets focus on a few renovations that can attract buyers, and a few common renovations that wont.
Renovations That Add Value:
1. Paint: It cannot be undersold what a quality fresh coat of paint can do. Visiting your local paint shop to discuss colors that are in style and will suit your space can make the work that much more effective. When focusing on resale, stick to neutral colors and avoid high contrast colors to cast a wide net for buyers.
2. Kitchen Renovations: The kitchen is often considered the heart of the home, and an updated kitchen can add significant value to your home. Updating appliances, installing new countertops, and adding storage space can make your kitchen more functional and appealing. Luxury appliances and cabinet hardware imported from Italy won’t be defining factors for buyers; but a kitchen that is clean with a modern touch and functional will go a long way.
3. Flooring: Like paint, flooring catches a person’s eye right away when they walk into the home. Replacing worn flooring can affect the whole appeal of a room. Depending on the home, laminate and vinyl are often a good choice at an affordable price. If you have older wood floors that are still in good condition without cracks or warping, refinishing them can also be a good return on investment.
Renovations that Don’t Add Value:
1. Swimming Pools: While a swimming pool may seem like a great addition to your home, it can turn off potential buyers who don’t want the added expense and maintenance that comes with it. Adding a swimming pool is best done for personal enjoyment reasons, rather than expecting an increase in home value.
2. LuxuryUpgrades: While high-end finishes and luxury upgrades may be appealing to some buyers, they may not be willing to pay extra for them. In fact, they may prefer to add their own personal touch to the home. This is especially true in the context of the neighborhood and comparable homes close by. If luxury upgrades or ornate pieces are out of character for the neighborhood they will likely not add any value.
3. Extensive Landscaping: A green lawn goes a long way, and a beautiful yard may cause buyers to take a closer look but extensive landscaping often doesn’t add value to the property. Similar to a swimming pool, extensive landscaping involves maintenance with added costs and time involved. Landscaping can be really nice to enjoy for the right home owner, but in general people wont consider the landscaping when placing a value on the home.
In conclusion, if you’re thinking about selling your home in the near future it’s important to focus on the renovations that will give you the best return on investment. Painting, Flooring and moderate Kitchen renovations and other functional updates are often the best choices, while swimming pools, luxury upgrades and extensive landscaping may not be worth the expense.