Most homeowners want to sell their property for the highest price possible. Fortunately, there are multiple ways to do so, and investing in various renovations is one of them. But, blindly renovating anything without proper research and execution can do you more harm than good. In this article, we’re going to cover seven renovation mistakes that you’ll want to avoid.
Home renovations are costly investments that should not be taken lightly. In addition, not all home improvements offer a substantial return of investment (ROI) and can negatively impact your house’s resale value.
The following are some of the most common home renovations mistakes you should avoid when trying to up your house value.
1. Extremely High-End Kitchen
It may come as a surprise but having an extremely lavish and high-end kitchen is among the list of home renovations you should avoid. That is because the cost of remodeling your kitchen to be upscale, flashy, and high-end is more than its resale value.
The key here is to look at what your neighbor’s kitchen looks like. Even better, have your Realtor create a CMA, Comparative Market Analysis, from the best comps from your neighborhood. This way, you know just how “high-end” you can push the envelope without wasting money.
In addition, many times mid-range appliances will be the better choice compared to top-of-the-line appliances. This can help you avoid spending too much money on a renovation that won’t offer a good return of investment (ROI).
2. Luxury Bathroom
The right bathroom renovation project can positively increase your house value but don’t get carried away. An overly luxurious and personalized bathroom can fulfill your wildest dreams, but remember that potential homebuyers may not share the same vision.
Over-the-top whirlpool tubs and over-customized finishes can frighten potential buyers. A nicely done walk-in shower is a high-demand feature that uses less floor space. It’s always smart to have upgrades that appeal to a very broad audience.
3. In-Ground Swimming Pool
This is one of those common renovation mistakes that might not make sense to the current owner. Putting in an in-ground pool might be the perfect thing for you and your family. But not everyone loves having a swimming pool take up a good part of their backyard.
Expect that a fair number of potential buyers will cross your listing off their list simply due to the pool. In addition, building a pool is costly. Unless you live in Southern California or Florida, the pool will rarely increase your house’s value more than its cost of installation.
If you hopelessly need a swimming pool and plan to enjoy it for many years, go for it. However, when the time comes you decide to sell your home, be forewarned that the pool will likely reduce your house’s marketability.
4. Room Expansions or Conversions
Every room in your home adds value to your house. Approximately, when you add a bedroom to your house you add 15% to your house. Even if the bedroom is small. Tearing down a wall to combine two small bedrooms and converting a room to a home office is a costly mistake.
Think of simple tricks and solutions to make the bedroom look more prominent, such as opting for lighter colors and slimmer furniture. If you desperately need a home office, avoid bulkily and built-in furniture. Furthermore, never forget the fact that most families prefer their youngsters to have their own spaces.
5. Using Substandard Material
When doing your home renovation projects, don’t use poor-quality materials. During the selling period, there is a high likelihood that potential homebuyers will notice the quality of materials used.
If you have an issue with your budget, then don’t do large yet cheap renovation projects. Instead, cut down the scope and scale of your project and use high-quality materials.
6. Choosing DIY Projects over Professional Help
Believe it or not but poor workmanship and DIY projects that went wrong can devalue your house. It is best to hire professional help, especially if your renovation project involves the structure of your house. During the time of sale, an inspector can easily notice poor workmanship. In addition, there is a high chance that redoing it can cost twice the initial amount of money invested.
7. Not Getting the Appropriate Building Permits
Depending on where you live, there are needed building permits that you must acquire before starting any major renovations. Neglecting these permits is one of the biggest renovation mistakes you can make. Without the necessary permits, lenders or appraisers can devalue your house and make it worthless before you begin the home improvement projects.
Visit your local building inspector’s unit to apply for a permit whenever you’re doing significant renovations to the mechanical systems of your house, such as electrical or plumbing. Furthermore, remember to get the proper licenses and signed off permits if you hire a contractor.
Renovation Mistakes Hurt Your Bottom Line
Home renovation is among the top tips in increasing your house value. However, in some instances, these home improvements can have the opposite effect and therefore hurt your house’s market value. That is why you should be wary of these renovation mistakes before you begin.
Always do your research from the internet, magazines, and home improvement tv shows. It is also advisable to consult an architect, interior designer, and even a real estate agent before doing any significant renovations in your house.