Common Home Upgrades that Won’t Turn a Profit
As a homeowner, you’re always looking for home projects to increase your home’s value. However, not all upgrades will have a great return on your investment. For example, you might enjoy a pool or a luxurious kitchen, but this doesn’t guarantee that the next buyers will be as interested, too. Here are the top most common home upgrades that won’t always turn a profit like you had hoped.
Installing a pool
Pools can be a great, luxurious amenity to have, but there are a few factors that play into whether or not they will turn a profit. If you live in sunny Florida, where a pool is likely to be used year-round, then a pool can be a great idea. However, here in Franklin, we see all the seasons, so installing a pool is likely to be a turn-off for buyers. Another factor with this upgrade is the extra expense needed to upkeep the pool. Future buyers that do not want to pay for the maintenance or that have small children might see a pool as too much of an inconvenience.
Making your kitchen too custom
If you think that every homeowner loves a blue and green Moroccan-tiled backsplash and gold hardware in their kitchen, think again. There is such a thing as customizing your kitchen too much. An over-personalized kitchen can easily deter buyers from your home since it can be expensive to change the kitchen if they don’t have a style similar to yours. And if you shell out heaps of expenses on marble countertops, it can’t be guaranteed that you’ll turn a profit. If you must upgrade your kitchen, make design decision that can appeal to the majority of buyers.
Unconventional room conversions
Wine rooms, exercise rooms and the used-to-be-garage rooms all sound like great home upgrades, but future buyers might not agree with you. For instance, if you have three kids, you’re looking for a four-bedroom home. And if the fourth bedroom has been haphazardly converted, especially in a major way (i.e. removing a wall), this will greatly deter buyers from making an offer. Make sure to carefully consider room conversions, and if you are interested in including a unique room, save yourself from the heartache later down the road and make sure you can easily reconvert them.
Improving too much
Yes, there is such a thing as improving too much. When upgrading your home, you have to assess your neighborhood. Does a fully equipped patio with a full kitchen and gas fireplace look out of place for your neighborhood? If it doesn’t, then proceed. If it does, then you’ll want to rethink this home upgrade. You won’t turn a profit if homes in your area don’t have similar upgrades. Later when you go to list your home for much higher than your neighborhood’because you are trying to get a return on your investment’it’s likely that buyers cannot afford your home. And if they can, they’ll go to a more upscale neighborhood for their home search. Look to home comparables before risking improving your home too much.