When you buy a house, you’re not just securing yourself a place to live. You’re also making an investment. As with anything else in life, though, there are good investments and there are bad investments.
At Homeowner Funding, we’ve seen our fair share of both. Something our customers know about us very well is that, in addition to helping people find home improvement financing options and providing high-quality contracting work, we pride ourselves on offering homeowners the best expert advice and industry guidance.
With that in mind, we here at Homeowner Funding have put together a helpful guide discussing 6 things you think add value to your home but don’t. By avoiding the home improvement pitfalls listed below, you can rest assured knowing that your resources are being used in ways that yield positive results.
Home Improvements That Won’t Add Value to a Property
Overbuilding for the Neighborhood
One of the biggest mistakes homeowners make when trying to increase their property’s value through construction and renovation is overdoing it. Sunrooms and home additions can be a great way to boost your asking price, but building too much (or choosing to make the features you do build excessively luxurious) can ultimately sabotage your selling efforts.
Simply put, if a buyer is looking to purchase a property in a neighborhood where the average property is priced around $100,000, then it’s unlikely they have any interest in a $200,000 property. Likewise, if someone is in the market for a $200,000 house, they probably don’t want to live in a $100,000 neighborhood.
Making “Invisible” Upgrades
Another home improvement that seems like an obvious way of increasing the value of your home, but actually doesn’t, is an internal upgrade or repair, such as the installation of a new HVAC or plumbing system. That’s because these kinds of improvements are considered “invisible.” Most buyers won’t notice even when they’re looking right at them!
What buyers will notice is a bad heating or plumbing system. That’s because a home having good, properly functioning innards isn’t considered a luxury worth paying extra. It’s considered an essential that should already be assured. So while making repairs and upgrades to “invisible” systems won’t boost your sales price, not doing it will likely lower your price.
Putting in a Swimming Pool
Installing a swimming pool is an expensive proposition for any homeowner, but that doesn’t mean the money you put into it will automatically come back to you. In fact, all too often, property owners find out that the money they spent on a swimming pool goes right down the drain.
Not only are swimming pools costly to install, but they also require regular, equally costly maintenance. As a result, while a swimming pool can sometimes help increase a home asking price slightly, it requires certain conditions to be met (Does the pool take up the entire yard? Do pools “fit in” with the rest of the neighborhood? etc.). Otherwise, the expense will likely overshadow any potential profit.
Enlarging Rooms by Removing Walls
We all wish our bedroom or our bathroom was just a little bigger, don’t we? It’s nice to have extra space to relax and stretch your legs. With that in mind, you might think that, instead of building an addition, knocking down a few walls is a great, easy way to increase the size of the rooms you already have. Think again.
Before you start looking into bedroom and bathroom remodel financing, consider not just what you will gain, but also what you will lose. Houses with more rooms tend to sell for higher prices than homes with larger rooms. A more spacious bedroom or bathroom might seem like a great selling point, but it automatically precludes you from selling to buyers with bigger families.
Putting in Niche Luxury Features
One of the best things about owning your own home is the freedom you have to customize it to satisfy your specific needs and interests. If you love movies, you might want to convert one room into a home theater. If you’re a foodie, you might want to turn your basement into a wine cellar. If you work from home, it might be worth investing in a dedicated office space.
The problem with niche features like these is that, while they’re perfect for you, they may not be perfect for someone else. The more you tailor a property to your own preferences, the harder it is to resell that property later. If you plan to live in your current house for many years to come, that may not be a big deal. But if you’re looking to sell, it’s something to keep in mind.
Adding Elaborate Landscaping
Curb appeal matters. Having an attractive, well-maintained lawn is an excellent way of attracting potential buyers. But just like when building additions, it’s important not to go overboard. More elaborate landscaping might prove eye-catching, but it can actually be a turn-off for those in the market for a new house. After all, once they move in, they’re the ones who have to maintain it.
For that reason, if you’re planning to sell your house, it’s often preferable to avoid planting trees, shrubbery, or other plants. Having a lush garden of flowers, fruits, or vegetables is certainly a draw for some people, but not for the majority of buyers. In any case, it certainly won’t add much resale value to your home.
Increase Your Property’s Value with Homeowner Funding
There’s an old saying that goes “It takes money to make money.” When it comes to adding resale value to your house, that adage definitely rings true. That said, knowing how to spend your money is just as important as having money in the first place.
Of course, not everyone has as much money to invest in their property as they’d like. That’s where Homeowner Funding comes in. Whether you’re looking for interior renovation, exterior repair, or even roof replacement financing, we can help you find the resources to get the home improvements you need.
Contact Homeowner Funding now for more information.
