Every homeowner pays for routine maintenance, like changing out worn-out plumbing or replacing the roof, but some choose to make improvements to increase the home’s value. If you are looking to add value because you plan to sell your house, then a well thought-out family room — or other functional space — can be a wise investment.
Not all improvements, however, are valuable to a potential buyer. Here are five things you think add value to your home but really don’t.
1. Swimming Pools
Many homebuyers view swimming pools as dangerous, expensive to maintain and a potential lawsuit — families with young children, in particular, may turn down an otherwise perfect house because of the pool. In fact, a would-be buyer’s offer may be contingent on the home seller dismantling an above-ground pool or filling in an in-ground pool.
2. Overbuilding for the Neighborhood
Homeowners may, in an attempt to increase the value of a home, make improvements to the property that unintentionally make the home fall outside of the norm for the neighborhood.
In general, homebuyers do not want to pay $950,000 for a house in a neighborhood with an average sales price of $825,000; it will seem overpriced even if it is more desirable than the surrounding properties. The buyer will instead look to spend the $750,000 in an $800,000 neighborhood. The house might be beautiful, but any money spent on overbuilding might be difficult to recover unless the other homes in the neighborhood follow suit.
3. Extensive Landscaping
Homebuyers may appreciate well-maintained or mature landscaping, but don’t expect the home’s value to increase because of it. A beautiful yard may encourage potential buyers to take a closer look at the property, but will probably not add to the selling price.
If a buyer is unable or unwilling to put in the effort to maintain a garden, it will quickly become an eyesore, or the new homeowner might need to pay a qualified gardener to take charge. Either way, many buyers view elaborate landscaping as an impediment (even though it might be attractive).
4. High-End Upgrades
High-end stainless steel appliances in your kitchen or imported tiles in your entryway may do little to increase the value of your home if the bathrooms are still vinyl-floored and the shag carpeting in the bedrooms is leftover from the 1960s. Upgrades should be consistent to maintain a similar style and quality throughout the home. High-quality upgrades generally increase the value of high-end homes, but not necessarily mid-range houses, where the upgrade may be inconsistent with the rest of the home.
In addition, specific high-end features such as media rooms with specialized audio, visual or gaming equipment may be appealing to a few prospective buyers, but many potential homebuyers would not consider paying more for the home simply because of this additional feature.
5. Wall-to-Wall Carpeting
While real estate listings may still boast “new carpeting throughout,” homebuyers today may cringe at the idea of having wall-to-wall carpeting. Carpeting is expensive to purchase and install. In addition, there is growing concern over the healthfulness of carpeting due to the amount of chemicals used in processing and the potential for allergens (a serious concern for families with children). Add to that the probability that the carpet style and color that you thought was absolutely perfect might not be what someone else had in mind.
Removing carpeting and restoring wood floors is usually a more profitable investment.
The Bottom Line
There is no simple equation for determining which projects will get you the most bang for your buck. Some of this depends on the local market and even the age and style of the house. Homeowners frequently must choose between an improvement that they would really love to have (the in-ground swimming pool) versus one that would be a better investment. A bit of research, or the advice of a qualified real estate professional, can help homeowners avoid costly projects that don’t really add value to the resale of a home.
— Mary Layman is a Realtor with Berkshire Hathaway HomeServices California Properties. She can be reached at mary@marylayman.com or 805.448.3890. The opinions expressed are her own.