Not all home improvements are created equal. Though many can improve your home’s look, functionality, and even value, others do the opposite.
In some cases, they might even hurt your property value (and your eventual sale profits) if you’re not careful.
Are you planning to invest in some improvements around the house this year? Here are five projects that usually aren’t worth the money:
1. Adding a master suite.
It might seem like adding a spacious master suite would be the ultimate investment, but in reality, it doesn’t do much for your home’s value — and it costs a whole lot, too.
According to Remodeling Magazine, the average homeowner spends nearly $330,000 adding a master suite. Upon resale? They get a mere $152,996 — or 47% of that investment — back.
2. Converting your garage.
Garage conversions can be tempting. After all, they add more functional space to your home (essentially an entire new room!) and can be great if your family’s growing or you need space to explore your hobbies.
Unfortunately, when it comes time to sell, a converted garage can really turn buyers off. According to the National Association of Home Builders, a whopping 72% of buyers want some sort of garage parking. So removing that parking option? It might make it hard to find a buyer — or at least one willing to pay full price.
3. Going big with the kitchen.
Updating your cabinets and countertops can be great, but don’t go too crazy if you’re renovating your kitchen. Remodeling shows that major, upscale kitchen remodels rarely deliver an ROI. In fact, the average return on these projects is just 53.9%.
You’ll also want to steer from really high-end appliances — particularly ones that would be hard for you to move yourself. You might love that chef-style double oven, but for the next homeowner, it might be rarely used (and that means they won’t pay a premium for it.)
4. Installing a swimming pool.
Swimming pools can be a great addition for your own personal enjoyment — not to mention fitness. But when it comes to your home’s value, they don’t do much.
They also come with lots of maintenance costs — plus insurance premiums — and can often be seen as an expensive turn-off for many buyers.
5. Knocking out some walls.
Opening up your floor plan might have been a great move 10 years ago, but nowadays, it’s just going to make your home a harder sell.
With so many people working and schooling from home in today’s world, open floor plans are just a recipe for disaster (and noise). Most buyers are going to prefer more closed-off homes — ones with distinct divisions between spaces and lots of privacy.
Eyeing some home improvements?
If you’re considering some home updates this year, a cash-out refinance may be able to help you pay for them. Get in touch with a Premier Nationwide Lending office in your area to discuss your options.
Premier Nationwide Lending is an Equal Housing Opportunity lender. Sponsored by NTFN, Inc. 6201 West Plano Parkway, Suite 100, Plano, TX 75093 | NTFN NMLS 75333.