5 Home Improvements That May Not Pay Off When You Sell

Many homeowners get a spark in their eye and a fire in their gut watching home-improvement television, but not every upgrade pays when it comes time to sell.

Do not let your desire to upgrade your home downgrade your home's market value.  Before you make a renovation fantasy a reality, consider whether the project will pay off when you are ready to sell.

1.  A Chef-Quality Kitchen

If you love to cook, a high-end kitchen could be the ultimate gift - for you.  If you think a massive overhaul will majorly impact resale value, you might be in for a surprise.  An upscale kitchen kitchen renovation recoups just 54% of its cost in added value, according to Remodeling magazine's 2020 Cost vs Value report.

Smaller kitchen upgrades could yield a bigger payoff.  Keep the updates reasonable.

2.  DIY Painting

A bold statement wall can say the wrong thing to potential buyers if the workmanship is questionable.  Streaky, chipped or low quality paint can knock dollars off of a home's sale price, according to Opendoor data that looked at home offers made from June 2018 to June 2019.

3.  An Expanded Master Suite

Knocking down a wall to create an oversize master bedroom or stealing closet space to build out a spa-style bathroom may sound dreamy, but how about as a selling point?  You may be able to work by going from a five bedroom to a four bedroom, but losing a bedroom in a smaller house could mean a lower selling price.

As for cutting into closet space, residential building codes do not mandate that bedrooms have closets, but removing a closet makes the room no longer look like a bedroom to a buyer.

4.  Plush Wall-To-Wall Carpeting

Carpet as the primary flooring in a house drops the value by $3,900, and carpeting in the master bedroom causes a $3,800 decrease, according to Opendoor.  Conversely, a 2019 report from the National Association of Realtors estimated that sellers could recoup the entire cost of refinishing hardwood floors.  New wood flooring could actually add value, with sellers getting $1.06 for every dollar spent according to NAR.

5.  A Swimming Pool

It does not matter if it is infinity edge or above ground:  Any pool can be seen as a drawback by buyers who do not want to deal with maintenance or insurance.  If you are adding a pool for resale, do not do it.  You will not recoup the cost.  If you will use it and enjoy it, then put in a pool.

How To Decide If A Renovation Is Worth The Cost

• Consider Your Timeline:  If you are going to be in the home for 30 years, you can do anything, because at that point your mortgage is paid off.  If you are looking to sell in the near future, pay closer attention to whether the changes will appeal to a buyer.
• Consult An Expert:  A designer can help you tell fleeting trends from future classics.  A contractor can explain what kind of work a proposed renovation would entail.
• Compare Home Features In Your Area:  Look at comparable homes for sale near you and go to open houses to make sure your improvements align with the norms for your neighborhood.
• Get An Appraisal:  A licensed appraiser can do a feasibility study to estimate your home's current value and its likely value after the improvements.