Home upgrades with the worst ROI
Home improvement projects typically increase the home’s value – until they don’t. Or at least, they don’t increase it enough. It’s not unusual for homeowners to spend thousands of dollars on renovations hoping they’ll be able to score more once they put the property on the market. The truth is, most of them venture into the process of sprucing up uninformed, without proper knowledge of what projects are worth spending money on. Well, the purpose of this article is to put an end to that, once and for all! It’s meant to teach anyone looking to sell – nowadays or in the future – about home upgrades with the worst ROI. With the newly found knowledge, you’ll know what to avoid and, therefore, stop the vicious cycle of pouring money down the drain!
Home upgrades with the worst ROI you are better off avoiding Now, you may be thinking – should I renovate before the sale? And the answer is, it depends. Mostly on personal preferences and the current condition of the house. However, if you decide to make certain adjustments, you’ll have to know what you are doing. Otherwise, you risk spending the money in vain. But, don’t you worry! Armed with the list we’ve prepared, you definitely won’t be doing so!
#1 Major bathroom remodel
While a minor bathroom remodel is considered a project that definitely pays off in the long run, the same doesn’t ring true for its major counterpart. In fact, the bigger the upgrade, the higher the price to pay for it, and the lower the chances of recouping all the money once the time comes to sell. In general, a typical major bathroom overhaul costs somewhere around $45,000.
The project itself is thought to add about 60% of the costs to the retail value, which, in this case, falls around $27,000. That comes down to about $18,000 in lost money, which is anything but insignificant.
#2 Major kitchen remodel
Bathrooms and kitchens are the souls of a home. The situation with this part of the property is similar to that of a bathroom. Much like a major bathroom remodel is costly and impractical, so is a major kitchen remodel. It can quickly end up costing an arm and a leg and will add only about 62% of total expenses to the actual value. Compared to a minor kitchen remodel, which has a return on investment of about 81%, its larger-scale kind definitely isn’t worth it.
#3 Apocalypse-ready upgrades
If the COVID-19 pandemic has taught us anything, it’s that there’s no shame in building a steady supply of necessary things, such as food, toiletries, etc. And while it might make sense to hoard a little bit, going overboard is never the answer. Some homebuyers make a vast number of upgrades, thinking they should be ready should the apocalypse ever come. But honestly, in most cases, it is only bound to deter prospective buyers rather than lure them in.
It’s definitely not warranted to splurge on water purifiers, backup generators, nor build a bunker or an additional storage facility. Actually, even if you end up needing a place for your belongings, you would be much better off renting a storage unit for the time being.
#4 Adding a hobby-dedicated space
Let’s be honest – how many people can say they share all the same hobbies you do? Probably not many. While it might make sense to add a space dedicated to your own leisure activities if you were to continue living in the house, doing so definitely won’t pay for itself upon sale. A hobby area incorporation is one of those home upgrades with the worst ROI, if not the worst, because it basically adds no value. It’s hard putting the exact price on how costly it is to do so, simply because the specifics of the projects tend to differ. The following are some of the most common additions:
- Home offices
- Study rooms
- Home theaters
- At-home gyms
But why is it exactly that homebuyers don’t appreciate having these in the house? Well, in the eyes of a buyer, the property is like a blank canvas. They want it shaped to their own liking, and your personal space dedicated to hobbies can actually disrupt their vision. If you really wish to add some of the above onto the premises, at least while still living there, stick to the items that aren’t permanent. By doing that, you’ll be able to return the place to its natural state right before the sale. Plus, you wouldn’t be throwing as much money away.
#5 Building a patio
There definitely are people who find the presence of a patio appealing. And yes, it certainly does boost the property value. But, unfortunately, not by much. At least, the data says so. It’s been reported that an average cost one can expect to spend on a patio build falls within the range of $50,000 to $55,000, making it a pricey project that can only add about 55% of that money to the resale value.
#6 Adding a pool
A pool is one of those things that are reserved primarily for the well-off, and with good reason. Adding one to the premises can cost anywhere between $30,000 and $100,000. And that’s without maintenance expenses! As far as its ROI, it isn’t particularly impressive. In fact, a pool is thought to add a mere 7% of the money spent to the actual value. By incorporating a swimming
area into the house, you could also possibly turn off potential buyers. Pools require maintenance, and not everyone is ready to be responsible for keeping them tidy and functional.
It does pay off to invest in certain upgrades, but not in these home upgrades with the worst ROI. May the Internet be your best friend while you search for improvement projects with a high return on investment. You’ll soon realize that many of them aren’t at all expensive and might even be possible to DIY!
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