Before putting their property on the market, many homeowners tackle renovation and remodeling projects that they assume will draw in more buyers. Additionally, homeowners might assume that certain projects will fetch a higher selling price.
However, it’s vital for homeowners and prospective sellers to remember that not all remodeling projects add value. In turn, it’s best to consider how you might allocate your renovation dollars, especially if you’re making those changes with the aim of increasing your home’s asking price.
With that thought in mind, consider home common home renovation projects that don’t add the value expected by many homeowners, and some that do!
Removing a Bedroom
One of the biggest mistakes a homeowner can make when it comes to home remodeling before a sale is sacrificing a bedroom. Real estate value and searches for new homes are both tied to bedroom count.
Remember, many homebuyers need a certain number of bedrooms for their family. In turn, they might not be impressed with your new spacious walk-in closet or “man cave” if you created those spaces by removing a bedroom.
On the other hand, adding a bedroom can mean a 15% to 20% increase in home value.1 Of course, there are many factors to consider when adding a bedroom, such as local building codes, adequate lighting, and the home’s layout.
Also, note that some homebuyers might not want to sacrifice a garage or live with a very small exterior space, no matter the home’s bedrooms. In turn, carefully consider a garage conversion or adding a new master suite if it means a significant reduction in the property’s yard size.
New Swimming Pools Rarely Add Value
Many homeowners assume that a luxury like a swimming pool will automatically add value to their home, and bring in new buyers. In truth, many homebuyers see a swimming pool as a safety hazard and a never-ending chore!
Also, remember that not all homeowners use their outdoor space the same. While a small number of buyers might appreciate a backyard pool, others might be looking for a large yard for their dogs. Some might want to use the space for a garden. Still others might find a pool unsightly.
With that in mind, you might consult with a realtor or appraiser in your area and check how a pool affects local home values. Also, remember that local building codes often dictate the need for special fencing and other safety features, which increases pool installation costs considerably.
Avoid Overly Expensive Roofing Materials
A new roof can typically add value to a home, and is often an excellent investment before selling. According to Zillow, “A new roof can make you more likely to get full asking price, lower time on market and smoother negotiations.”2
However, homeowners would do well to avoid overly expensive roofing materials, assuming that their higher cost will allow them to fetch a higher asking price. According to the same article mentioned above, asphalt shingles might recoup 68% of their installation costs, while a costlier metal roof might only recoup 60% of their costs.
Avoid Overly Improving Your Home
One last mistake that homeowners should consider is overly improving their home. What does this mean?
Note that surrounding homes are a key factor when it comes to valuing any house on the market. A buyer’s budget is also a vital factor to remember!
Homebuyers are only going to pay so much to live in a certain neighborhood, and are rarely willing to pay top dollar for homes with unnecessary improvements.
For example, a homeowner might assume “the more bathrooms in a home, the better!” While buyers want a reasonable number of bathrooms, and often prefer something separate for the owners, they might not be willing to pay the $20,000 you spent on adding a third or fourth bathroom to your home.
This would be especially true in neighborhoods where most other homes only have 2 or 2-1/2 bathrooms. Buyers might not get much use out of that third or fourth bathroom, and would prefer to spend less on a nearby home that still meets their needs.
With all this in mind, remember that you can typically consult with local real estate experts on what projects might add value to your home. A listing agent has a vested interest in ensuring you fetch top dollar, and is typically familiar with the design of competing homes, so they’re often very willing to help you make your renovation decisions carefully.
- https://orchard.com/blog/posts/how-much-value-does-an-extra-bedroom-add#Do_more_bedrooms_always_mean_more_value_3 ↩︎
- https://www.zillow.com/learn/should-i-replace-my-roof-before-selling/ ↩︎
Inna Ellison is a freelance writer from Tampa, Florida, specializing in SEO content and blogs for contractors, construction companies, and more. Inna is proud to create all her material individually, without AI and other digital help.
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