Home improvement is the process of renovating or making repairs to a home, such as installing new features like a kitchen or bathroom. It also includes activities such as painting or repairing walls, replacing flooring and adding decorations. The home improvement industry encompasses the sale of building materials, appliances and accessories, as well as the hiring of contractors and other professionals to carry out home renovation projects. It is estimated that home improvement spending reached nearly $1 trillion in 2017 and has a positive impact on the economy.
Many homeowners undertake home remodeling projects with the hope that it will increase their property value. But not all additions and renovations are created equal. Some can even decrease your home’s resale value. So before you grab your hammer and start swinging, read on to find out which common home improvements to avoid.
Swimming Pool
If you’re a homeowner, you may be convinced that adding a swimming pool to your property will boost its value. However, it is important to note that swimming pools are only a small portion of the total value of a home, according to Angi, an online contractor search service and house renovation resource. A swimming pool is not the best investment if you plan to sell your home in the future, since it can be a deterrent to potential buyers.
High-End Baths
Another type of home improvement that could decrease your property’s resale value is installing high-end fixtures and finishes in the bathrooms. For example, you might spend thousands on heated floors and a frameless glass shower, but these upgrades may not pay off when it comes time to sell your house. In general, homebuyers are looking for more standard-looking bathrooms with neutral colors and simple fixtures.
Overly Personalized Homes
Over-personalization of a home can also reduce its resale value. For instance, installing a built-in home theater system is likely to turn off a lot of buyers, as will installing customized electronics that are difficult to transfer to the next owner. Similarly, a sauna might appeal to you but may not be a selling point for prospective buyers.
The Most Cost-Effective Home Improvements
Whether you’re planning to stay in your home for years to come or are considering listing it soon, it’s critical to choose home renovations that will provide the most return on investment. To do this, you should research how much similar houses in your neighborhood are worth and what types of renovations have been popular in recent years. You should also consider your budget and whether any energy-saving renovations are tax deductible.
To get an idea of which home improvement projects will add the most value to your house, walk around the neighborhood and check out what your neighbors have done to their properties. It’s also a good idea to talk with a real estate agent about your plans and see what they recommend. They’ll be able to give you tips about common home improvements that will attract buyers and provide the most bang for your buck.