Four Home Renovations That Are Bad Investments
If you’re considering renovating your home in order to increase its value, you’ll want to avoid certain projects. According to Remodeling, a sunroom addition is one of the worst home renovations in terms of return on investment, with an addition costing over $75,000 but only adding slightly more than $35,000 to the value of the home.
Kitchen and bathroom remodels are also generally bad investments because they are highly personalized projects that may not appeal to everyone. Converting a garage into living space or adding a swimming pool are two other bad investments. If you want to add value to your home through renovation, stick to low-cost projects with a high ROI, such as painting or landscaping.
Sunroom Addition
A sunroom addition might seem like a good idea, especially if you live in a climate with long winters. However, according to Remodeling, sunroom additions are one of the worst home renovations in terms of return on investment. An average sunroom costs over $75,000 to build, but it will only add slightly more than $35,000 to the value of your home. Unless you plan on living in your home for many years and intend to enjoy the sunroom yourself, it’s best to avoid this project.
Kitchen Remodel
A kitchen remodel is another project that often goes wrong in terms of ROI. Kitchens are highly personal spaces, and what you might consider an upgrade might be seen as dated or even tacky by potential buyers. Additionally, many people who buy homes already have a vision for their own kitchen renovation, meaning that your expensive new cabinets and countertops could end up being ripped out anyway. A minor kitchen remodel—such as painting cabinets, updating hardware, and installing a new backsplash—is more likely to appeal to a wider range of buyers and won’t break the bank.
Bathroom Remodel
Like kitchens, bathrooms are highly personal spaces. What you might consider an upgrade—such as a luxurious spa-like shower with multiple showerheads—could be seen as excessive by potential buyers. Furthermore, bathroom remodels tend to be expensive and time-consuming; if you’re not careful, you could easily end up spending more money than you’ll ever recoup in increased property value. A minor bathroom update—such as painting walls and upgrading fixtures—is more likely to pay off in the long run.
Swimming Pool/Garage Conversion
Adding a swimming pool or converting your garage into living space might seem like a good idea, but unfortunately these projects rarely add much value to your home. In fact, they could actually deter potential buyers; some people might not want the hassle and expense of maintaining a pool while others might prefer having an actual garage for storage space. If you’re set on adding a pool or converting your garage into living space, do it for yourself rather than for resale value; chances are good that you won’t see much of a return on your investment when it’s time to sell your home.
If you’re planning on renovating your home in order to increase its value down the line, there are certain projects you’ll want to avoid. Sunroom additions, kitchen remodels, bathroom remodels, and converting your garage into living space or adding a swimming pool are all generally bad investments because they either fail to add significant value or actively deter potential buyers. Stick to low-cost projects with a high ROI—such as painting or landscaping—if you want to increase the value of your home through renovation.
