Have you been dreaming of a few home renovations? Read this article first!
Your home isn’t just the place where you go to relax after a long day. It’s also an investment in your family’s future. And while it’s natural to want to make a few improvements to increase your home’s resale value, some home renovations will actually cost you some big bucks in the long run.
Seeing something as an improvement doesn’t mean a potential buyer will feel the same way. US homeowners spent over $420 billion in 2020 on home renovations, according to the National Association of Realtors 2022 Remodeling Impact Report.
So before you invest in a new addition or a swimming pool to upgrade your home, you should consider whether the project will pay itself off and get prospective buyers through the door when it comes time to sell.
Let’s look at some common home improvement projects you should avoid because they could decrease the value of your home.
Keep reading to find out which home renovations you should stay away from!
How Much Is TOO Much Wallpaper?
Wallpaper is making a big comeback. But the pattern and color scheme you choose may not appeal to many other buyers. On average, installing new wallpaper costs homeowners between $800 and $1,200.
However, according to home improvement experts, most spend about $1,000 for a 12ft by 18ft room with standard vinyl wallpaper. Yet, you most likely won’t be able to recover the cost when it’s time to sell.
Plus, the removal of wallpaper is notoriously time-consuming, not to mention a messy job. The quality degenerates over time, and most future owners of your home will want to get rid of it, which can be a cumbersome process.
Extravagant Lighting Fixtures
According to experts, one common home renovation mistake is falling in love with a unique or lavish light fixture.
Whether it be ceiling-mounted lights in your dining room or a hanging pendant in a hallway, a psychological phenomenon happens when you go to a lighting store: You’re going to pick something out that’s exciting and new instead of choosing a new addition that goes with the big picture.
Also, the passage of trends works against homeowners. Whatever is trending today will look dated ten years down the road when you’re ready to sell your house.
We say simple is best. The ONE good thing, however, is that lighting can easily be switched out at a low cost whenever you want.
If you already have existing hardwood floors, you shouldn’t cover them with carpeting. Most new homeowners tend to remove carpets in general, but especially if they’re of poor quality. Rugs don’t add any real value to any property.
According to NAR’s Remodeling Impact Report, the biggest percentage of cost recovered for interior home projects was from refinishing hardwood floors at 147 percent and new wood flooring at 118 percent.
This means that if you spend $20,000 on new wood flooring, you could see $23,600 added to the sale price of your home. However, this also depends on the house and the type and design of your hardwood floors.
Any home renovation that’s over-personalized can hurt the value of a home, especially when we’re talking about something like tiling, which requires more effort and money to replace. Most buyers like to upgrade the floors in their homes.
Adding tile or wood CAN generally improve in value…unless you get that person who wants a 50s diner look and installs black-and-white tile. For their concept, this is extremely cool.
But for the resale value, most homebuyers will see it as a distraction and something they’ll need to rip out. All they’ll see is extra work and big bucks.
Instead of falling victim to tiling ay mistakes, we suggest going with a traditional white tile floor and maybe buying a rug with the style you’re going for.
Also, something to think about- if you don’t want to spend an arm and a leg on a professional to replace your flooring, consider doing this home renovation yourself.
Combining Two Bedrooms To Create A Bigger Room
Combining two small bedrooms to create a larger space might seem like a great home renovation to a young couple who don’t have any children or to empty nesters whose children have already left the house.
But this is probably a wrong move if you aren’t planning on staying in that home permanently. Even a tiny bedroom can add value to homes because most families want children to have their own rooms and don’t mind if they’re on the small side.
From what we’ve gathered, each bedroom can add approximately 15 percent to the value of a home. So rather than knocking down your walls, you should try some simple tricks to make your bedroom space look bigger.
A few ideas? Lighter wall colors and modern, slim furniture might do the trick.
According to the home services directory and information company Angi, most homeowners tend to spend between $5,700 and $22,600 to convert their garage into a livable space. Yet unfortunately, this home renovation project generally doesn’t add any more value to the home.
We recommend keeping your garage as it is. As a homeowner, transforming your garage into a studio and renting it out or turning it into a home gym may sound tempting.
But if you alter the garage’s layout too much, it can lose value in the eyes of homebuyers searching for a property with a garage to park their cars in.
An Exceedingly High-End Kitchen
The kitchen is often looked at as the heart of most homes. And it’s a home renovation many homeowners save up for. However, the resale value of a significant, high-end kitchen remodel is less than what you’ll actually invest in it.
In 2020, the national average for a substantial kitchen remodel was $68,500. But the resale value was only around $40,100, according to the site “Remodeling.”
If you want to avoid making any kitchen renovation mistakes that won’t give you a return on your investment, try concentrating on which aspects of the kitchen are the most outdated or look worn down.
And as tempting as it may be, you should think about selecting mid-range appliances rather than those costly high-end alternatives.
How SHOULD Homeowners Decide If A Home Renovation Is Worth It?
Before diving head first into your next home renovation, you should consider the quality of life impact as well as the financial implications of your home renovation. If a refurbishment would genuinely improve your home’s value, you should consider doing it.
For instance, painting the interior of your home with a nonneutral color will likely add zero value to your home because there’s a good chance the next property owner will repaint it in a lighter color. For bigger homes, painting the whole interior of your home can cost over $1,000.
However, if this renovation dramatically increases your quality of life…and home, you should definitely consider it.
Have you undertaken any home renovations recently? Be sure to leave us a comment and let us know about your experiences!
And while we’re on the topic of homes, check out 6 Most Expensive States to Buy a House in 2023