Renovation Pitfalls: Projects that Could Decrease Your Home Value

Renovating your home can be an exciting way to improve its functionality and aesthetic appeal. However, not all home improvement projects add value—some can actually decrease your home’s marketability and resale price. If you’re thinking about making updates, here are a few renovations you may want to reconsider:

1. Overly Personalized Customizations

While you might love a bright orange kitchen or a medieval-themed basement, potential buyers may not share your taste. Highly specific design choices can make it difficult for buyers to envision themselves in the space, which could lead to a lower resale price. However, should that bring you joy whilst you live in your home, I saw go for it! Just be mindful that is may be recommended to "remove" when you go to list your home.

2. Luxury Upgrades That Don’t Match the Neighborhood

Adding high-end finishes like imported marble floors or a $50,000 chef’s kitchen may seem like a great idea, but if your home is in a neighborhood with modestly priced homes, you might not see a return on investment. Buyers typically won’t pay extra for upgrades that don’t align with the overall market value of the area.

3. Combining Bedrooms to Create a Larger Space

Many homeowners think merging two smaller bedrooms into one large primary suite is an attractive upgrade. However, reducing the total bedroom count can lower your home’s value because it limits the number of potential buyers looking for homes with more bedrooms. As small as it may seem, going from a 4-bedroom home to a 3-bedroom home does have a pretty significant impact to your home value depending on the neighborhood.

4. Converting a Garage into Living Space

Turning a garage into an extra living room or gym may seem like a great way to maximize space, but most buyers prefer a functional garage for parking and storage. Removing this feature can make your home less appealing, especially in areas where garage space is in high demand.

5. DIY Projects Gone Wrong

If you’re handy, DIY projects can save money, but poorly executed renovations can cost you in the long run. Uneven flooring, improper electrical work, or sloppy paint jobs can make your home look unkempt and require buyers to invest in costly repairs.

6. Eliminating Closets

Storage space is a top priority for buyers. Removing closets to make more room for furniture or decor can backfire when it comes time to sell. If a bedroom lacks a closet, it may not even be considered a legal bedroom in some areas, which can hurt your home’s value.

7. Adding a Pool (in the Wrong Market)

While a pool might sound like a dream addition, it can be a deterrent for many buyers due to maintenance costs and safety concerns. In cooler climates, where pools have limited seasonal use, the return on investment is often low.

8. Excessive Landscaping or High-Maintenance Features

A beautifully landscaped yard can enhance curb appeal, but intricate gardens, koi ponds, and elaborate hardscaping may turn off buyers who don’t want to spend time and money on upkeep. Simplicity often wins when it comes to outdoor spaces.

The Bottom Line

Before making major renovations, it’s always a good idea to research market trends and consult with a real estate professional to ensure your improvements will enhance—not hurt—your home’s value. But as I mentioned before, if any of these updates bring you joy and increase your happiness, then go for it!! Just be mindful of the potential investment that may not result in ROI.

If you’re thinking of selling in the near future, I’d be happy to provide guidance on the best updates to maximize your home’s appeal!