Devin Jacobs
Renovating your home can seem like a great way to increase its value, but not all upgrades are equal. Some costly renovations might leave you wishing you had kept your wallet closed. Here are 15 that you should think long and hard before starting; these will only give you a headache and no financial benefit later.
Converting a Garage into a Living Space
Turning your garage into a living room or bedroom may seem appealing, but it can hurt resale value. Many buyers prefer having a functional garage for parking and storage. Plus, the renovation cost is high, and you might not see much return on investment, making this a risky financial decision.
Installing a Home Elevator
While an elevator may feel like a luxury upgrade, the installation and maintenance costs are sky-high. Home buyers aren’t typically seeking this feature unless it’s a necessity. And truthfully, it is an investment that likely won’t pay off. It’s also prone to breakdowns that may lead to even more ongoing expenses down the line.
Building a Wine Cellar
Wine cellars sound elegant, but they cater to a niche market. The expense of climate control, custom shelving, and construction rarely translates into added value for potential buyers. Unless you plan to stay in your home indefinitely and have a large collection, this renovation isn’t worth the steep price tag.
High-End Kitchen Remodels
A state-of-the-art kitchen renovation can run into the tens of thousands of dollars. Kitchens are important to buyers, but most won’t be able to tell the difference between top-tier appliances and mid-range models. Over-the-top upgrades might make your kitchen look fabulous, but the return on investment is often disappointing.
Luxurious Bathroom Overhaul
Going all-in on a bathroom remodel with marble floors, high-end fixtures, and a soaking tub can cost a fortune. On the flip side, potential buyers may not appreciate the extravagance or be willing to pay extra for it. Stick to smaller, more practical updates that keep the space functional and visually appealing without overspending.
Custom Landscaping
Landscaping can enhance curb appeal, but overly personalized or expensive designs can be a turnoff. Features like intricate stone pathways or elaborate water fixtures are costly to install and maintain, yet they don’t significantly boost home value. Keep outdoor updates simple and manageable to avoid unnecessary expenses.
Swimming Pool Installation
Although a pool might sound fun, it’s a costly addition that comes with significant upkeep. Many buyers shy away from homes with pools due to maintenance, safety concerns, and insurance costs. Unless you’re an extreme pool enthusiast, the investment rarely pays off and can even limit your potential buyer pool (pun intended).
Home Theater Rooms
Building a dedicated home theater with custom seating, soundproofing, and high-end equipment can set you back tens of thousands of dollars. Yes, it’s a fun feature, but it’s niche and doesn’t appeal to everyone. Most buyers would rather repurpose the space for something more practical, making this a poor return on investment.
Expanding Square Footage with an Addition
If you think adding extra square footage is a surefire way to increase home value, you might be wrong! The costs of permits, materials, and labor can quickly spiral out of control, and in many cases, the value of the home won’t increase enough to justify the expense.
Wall-to-Wall Carpeting
Buyers typically prefer low-maintenance flooring options; replacing hardwood or tile floors with wall-to-wall carpeting can actually hurt your home’s appeal. Carpets are harder to maintain, they stain easily, and often require replacement every few years. This makes this an unnecessary and costly change that won’t pay off.
Sunroom Addition
Sure, a sunroom offers more natural light and additional space. However, the expense of construction, heating, and cooling often outweigh any potential benefits. Instead, focus on maximizing your existing square footage without committing to such a big-ticket addition. Tip: Well-positioned mirrors are a cheap way to add more light and create an illusion of space indoors.
Smart Home Systems
Though smart home technology is trendy, installing a full-scale system with connected lights, appliances, and security features can be extremely expensive. The tech can quickly become outdated, and most future occupants would likely prefer to choose their own gadgets. It’s best to avoid overhauling your home if your goal is to increase the selling value.
Outdoor Kitchen
Outdoor kitchens with high-end grills, refrigerators, and counters may seem like a great way to enhance your outdoor space, but they often don’t see enough use to justify the hefty price tag. In many cases, the excitement fades, and they become more of a maintenance headache. Rain and sun exposure might even cause expensive damage, adding to the costs.
Second-Story Additions
Building a second story can drastically alter your home’s structure and cause complex construction challenges and high costs for materials and labor. The process often uncovers unforeseen costly issues, like foundation reinforcement or zoning complications. This type of renovation also significantly disrupts your living space and makes it an overwhelming and stressful process for homeowners.
Custom Closet Systems
High-end closet systems with custom shelving and built-in drawers might seem like a practical upgrade, but they can quickly become a financial drain. These custom designs often require constant upkeep and adjustments as your storage needs change. This makes them less flexible over time. Instead, opting for simpler, more adaptable storage solutions can save you money in the long run.