Whether you’re selling your home soon or want to add resale value for the future, choose updates that will help you recoup the money spent. Here are a few home improvement projects with a low ROI that may not be worth the investment.
Swimming Pools are Projects with a Low ROI
A swimming pool can be a huge asset if you and your family enjoy the water. The pool provides a relaxing spot to unwind after a long day. If you’re planning to sell your home, potential buyers may not have the same perspective.
A buyer may be concerned about hours of maintenance and costly repairs. Families with young children might pass on an otherwise attractive property, fearing the kids may go into the pool unsupervised.
Overbuilding for the Surrounding Neighborhood
If you are considering a significant addition to the existing structure of your home, like an extra floor or wing, consider whether the upgrade might cause your home to look out of place in the neighborhood.
While a two-story home may provide greater square footage, it will not add significant resale value if it sits in a neighborhood of one-story houses. In general, buyers will not pay $600,000 for a property in an area with $300,000 homes. They are more likely to choose a $600,000 house with neighboring houses of a similar value.
Money spent on expanding can be challenging to recover unless the houses nearby look similar.
If you enjoy sewing or model trains, think twice before creating a specialized area for your hobbies. While you would appreciate a customized room, potential buyers probably aren’t going to have the same interests. Most homebuyers are interested in a house’s number of bedrooms and bathrooms. If you have converted a bedroom into a hobby room, it won’t be appealing to buyers.
DIY Projects with a Low ROI
To avoid the cost of hiring a professional, many homeowners improve their living spaces with DIY updates. If your project doesn’t yield the polished results that a professional would provide, the project will have a low return on investment. You will save money on home improvements, but these upgrades won’t add value to the property.
When preparing to sell your home, hire a professional to tackle renovations.
Before getting started on improvement projects, determine the reason for the upgrade. If it’s for your enjoyment, you might justify the cost even though you won’t recoup the money. Research current trends to choose the best improvements if you’re looking for projects that solely boost your home’s resale price.