Remodeling doesn't always pay

If you’re looking into remodeling to increase your home’s value, you should know that some upgrades might not be so valuable to potential buyers. Here are some common upgrades that we find have the lowest return for the cost.

1. Pools

In a warm, sunny state, a pool may actually be a ‘requirement’ to many buyers, and you’ll need one just to compete with other homes for sale in your neighborhood.In Maryland… not so much. Because it’s not a year ‘round value, because it takes money to maintain, and because many buyers are concerned about the time needed for maintenance, it’s unlikely you’ll recoup the costs of a pool installation. It might even hurt your value!

2. Highly custom design decisions

Unless you plan to stay in your house for many years, think twice about renovations that are too personalized. Also, be aware that decorating trends change over time, and what seems so ‘wanted’ now may end up screaming ‘dated!’ in just a few years. Also, spending more on custom details like a beveled countertop edge that’s complex and ornate, rather than a basic beveled edge, can cost a lot more, but doesn’t bring in any extra profit when you sell.

3. Room conversions

Let’s say your home already meets the typical requirements of buyers in your neighborhood – say, three bedrooms, two bathrooms, and a garage. If you alter them into something unusual, perhaps turn a bedroom into a luxury closet, it will likely harm your resale value.

4. Adding square footage- Surprise!

Sizable square footage gains — like finishing your dark basement so it becomes a cheery, additional livable area — can be a boon in buyers’ minds. But some changes may not give you much of a return on your investment. Adding square footage in a way that doesn’t flow well with the floor plan can backfire.

5. Over Improving

Unfortunately, we see this one all the time…When your upgrades go overboard compared to the other homes in your neighborhood, buyers who are looking in the area won’t be able to afford your home, and buyers who can afford your home of your caliber are looking in ‘nicer’ neighborhoods. Keep the “base level” of your neighborhood in mind. Being ‘a little nicer’ than the others in your neighborhood will bring you top dollar, but try being the undisputed ‘king of the hill,’ and you’ll get toppled.

In the end...

These upgrades are great – as long as they’re for your own enjoyment, but don’t assume that every upgrade is an upgrade to your bottom line. If you’d like to choose improvement projects that have the best potential to bring a higher value, ask us! We’ll be happy to let you know the value of your home before and after any proposed renovations, so that you can get a concrete idea of potential returns. Just email or call!

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