Staging your home for sale can prove daunting, especially for first-time home sellers. Popular TV shows in the real estate niche, such as Flip or Flop and Fixer Upper, make it seem a norm for homeowners to spend thousands on renovations before listing their properties for sale. While flippers make money from cosmetic renovations before reselling homes, they are professionals who have mastered their skillset.
Average homeowners preparing their homes for sale can’t enjoy maximum ROI from large renovation projects. According to All Around Moving, even popular home fixes, such as interior and exterior painting, can only recoup 51%. The thought of spending more without recouping is certainly discoursing, especially since you have to deal with this list of taxes when selling a house. Below are home improvement projects to avoid when preparing your home for sale:
1. Going Big in the Bathroom
Bathroom remodeling is certainly a common home improvement project homeowners prefer undertaking. It is among the few renovation projects that homeowners can recoup almost the same amount they spent. However, bathroom remodeling can only increase property value if done right. This means focusing on the basics, such as updating the lighting, a fresh coat of paint, and minor damages. Ideally, you shouldn’t spend more than $5000 on a bathroom remodel if you want some profits.
Unfortunately, keeping your expenditure under $5000 after you’ve decided to redo your decades-old bathroom is almost impossible. For instance, you’d be tempted to replace the old linoleum floor with high-end flooring.
2. Expanding Rooms for Personal Hobbies
Homeowners also make the mistake of building new spaces that feed their hobbies during renovation. This includes creating home offices, theaters, gyms, libraries, man caves, themed kids’ bedrooms, and more. All these rooms mean converting a general room into a devoted space for your specific hobbies.
While these upgrades can improve your general living space, they can hurt your property value. For starters, you won’t recoup the upfront costs spent in constructing these spaces. Secondly, dedicated hobby rooms also easily turn away potential buyers. For instance, potential buyers who don’t want a theater in their homes won’t pay more for homes with theaters.
3. Designing a Perfect Kitchen
Kitchen remodeling is another money trap, just like bathroom renovations. According to All Around Moving, kitchen remodeling can improve property value by 5% to 15%. However, you can easily overspend on this project, especially if you are focused on creating a perfect kitchen.
Basic kitchen upgrades, such as a new sink, cabinets, inexpensive backsplashes, and paint, cost between $10,000 and $15,000. Estimated profits from kitchen remodeling are approximately $200,000, making basic upgrades very feasible. Mid-level remodels, such as wood countertops and modern appliances, can cost approximately $30,000. This means your home should be sold for $600,000 or more to recoup the expenses. Generally, you should think twice before investing in mid-range and major kitchen upgrades.
Adding a hot tub, installing a sunroom, new flooring, and expanding the garage are other common home improvement projects that won’t increase significant property value. You should focus on basic wear and tear, HVAC repairs, paint, and other simple upgrades for a better ROI.
We hope you found this blog post on Home Improvement Projects That Won’t Increase Resale Value useful. Be sure to check out our post on Smarter Renovation and Home Improvement Tips for more great tips!
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