Wednesday, September 14, 2016

Renovations That Aren't Worth the Investment

Luxuries are nice, but unless you plan on remaining in your current residence for more than a few years, you should pick and choose upgrades wisely. Most Realtors and contractors know the best ways to spruce up before putting a home on the market, but what are the absolute worst renovation ideas if want to sell the place you dwell? These are the top renovations that are only nice to have if you don't expect to regain the cost.

Sunrooms or Solariums

These fall into the category of “nice if you already have one,” and potential buyers will ooh and ahh when viewing your home. However, they are cost-prohibitive as an investment. A good-quality custom sunroom can cost as much as $75,000, and you'll likely recover less than half that amount on resale. This is something that should only be added to your home if you're planning on enjoying it yourself.

Bathroom Additions

A second or third bathroom is almost always a bonus feature when you market a home. However, if you're adding an extra bath with the hope of getting a better sales price, think again. The average bath addition can cost $40,000, and the ROI is usually about 57% of that amount. A better use of your money would be to upgrade your current bath; it costs less on the front end, and you'll recover almost the entire expenditure on resale. 

Swimming Pools

Again, nice to have, but not a great ROI. In fact, having a pool can actually be a drawback when selling a home. Most people like the idea of having a swimming pool, but the average person doesn't enjoy the high cost of upkeep or the time involved. Those with small children may also be hesitant due to the safety factor.

Home Office

This may be a selling point for someone who's self-employed or considering working from home, but it isn't enough of an incentive for most people to justify the cost. If you already have an area or a room that's being used as an office, you can leave it as-is. However, it's better to clear it out and offer it as a bonus room and let potential buyers imagine a use. 

A basic rule of thumb when considering a renovation is how long you plan to remain in your residence. If you're going to put it on the market within two years or less, don't undertake major renovations or 'comfort' projects with an eye toward recouping your investment. However, if just want to feather your nest, only your budget and imagination will hold you back. Find out today how much home improvement you can afford by contacting a contractor in your local area.