It’s important to evaluate a home renovation you want to make. Additionally, you want to know why you’re considering the renovation. In my last blog, I described two home renovations with the best return on investment.
Many homeowners who make renovations do them to enjoy the renovations while they live in their home. Furthermore, they also want to maximize the asking price of their home when they sell it.
Home Renovations That Do Not Add Value
Consequently, know approximately how much you’ll recoup of your renovation investment when you sell your home.
Remember that investing in a renovation project with low return is only desirable if you plan to stay in your home for many years and the project is something that is personally desirable for you.
So, following are two home renovations that do not add value.
Your neighbors may envy your gorgeous sunroom now, but they’ll be happy they didn’t invest a whopping $30-$50k to build it, only to recoup an estimated 49% when it gets listed for sale. A sunroom is one of the most expensive home upgrades with one of the lowest returns on investment.
I’m not talking a “basic” bathroom remodel, such as replacing a 30-year-old toilet and celery-green bathroom vanity. I’m talking expensive imported tile, a whirlpool tub, and waterfall showers! Consequently, these luxuries might make you feel like royalty at bath time.
However, the return on these pricey bathroom luxuries when you’re ready to put your house on the market is only 56%. Therefore, you might realize at that time that you could have gotten similar enjoyment at bath time with more basic tile!
Also, remember that the type of house and neighborhood you live in will affect these numbers. If you live in a gated community with luxury, custom homes, a luxury bath may yield a larger return on investment when it comes time to sell.
So, do your homework, and make reasonable, educated decisions when you remodel. Choose your projects wisely to get the maximum return on your investment down the road!
If you have questions regarding a potential remodel project and how much of your investment you may recoup when you sell your home, contact me! I’ll give you current sales info about your neighborhood to ensure you’re making smart decisions regarding your home renovation project.
Dana Davis Properties/DHR (Distinguished Homes Realty)
Phone: (386) 569-4998