By Tali Wee of Zillow
Purchasing a home is typically the most expensive purchase a person makes in his or her lifetime, so it’s understandable why buyers are focused on a property’s small details. Searching for a home can be discouraging, especially in competitive markets where properties sell quickly, because shoppers don’t have much time to make decisions. For that reason, home sellers should prepare their homes to make the best impressions on buyers.
Some features that often deter home buyers from making offers are elaborate additions that the current owners made with the intention of adding value to their homes. For example, a homeowner may have dreamt of having a koi pond someday; when it’s finally a realistic possibility, the owner installs the large pond in the averaged sized backyard. After enjoying the ideal pond for years, the homeowner decides to sell the home thinking this addition should increase the property’s value. Instead, the specialized feature limits the number of interested buyers since many prefer additional yard to a koi pond. The installation then represents a renovation the buyer would have to make, possibly reducing the purchase price they’re willing to pay. Calculating the costs of a mortgage, the interest over the life of a loan, the price of property taxes and insurance, in addition to renovating the backyard can be overwhelming for potential buyers.
Before homeowners get carried away with making renovations and anticipating positive returns on their investments (ROI), consider avoiding these four projects that may decrease resale value.
1. Swimming Pools
Just as the koi pond is a deterrent for some homebuyers, so are swimming pools. Buyers might be disinterested in a pool if they don’t swim or don’t want the responsibility of keeping the pool clean and the watered conditioned. If buyers have small children or pets that do not swim, the pool could be a safety hazard. In addition, swimming pools represent an additional liability for homeowners. Though some home shoppers specifically seek properties with pools, in areas with cooler climates, pools could be a strong deterrent for the majority of buyers.
2. Massive Walk-in Closets & Home Theatres
In general, home buyers prefer a bedroom over a room specifically designed for a single purpose. A bedroom converted into an elaborate walk-in closet could be a dream coming true for a buyer, where most buyers would find more value in an additional bedroom or a room with more square footage. Home theaters also appeal to a narrow audience, but such installations limit the options for most home shoppers.
3. Garage Conversions
Another conversion that homeowners may assume would add value to their properties is the garage. Home sellers should not underestimate the value of a garage for home buyers. Although converting a garage into a family room, bedroom or man cave appeals to some buyers, the renovation limits the original function of the space and therefore reduces the number of interested parties.
4. Lavish Landscaping
Though beautifully landscaped yards and garden beds exponentially increase the curb appeal of homes which impress home shoppers, all the foliage requires upkeep. Not unlike a massively overgrown garden, a highly tended to yard implies major work. If buyers aren’t interested in maintaining the extravagant landscaping, the sellers limit their list of buyers and do not reap a return for their pricey investments.
With all renovations, homeowners run the risk of missing the mark, losing money and even decreasing the resale values of their homes. Some high-end kitchen and bathroom upgrades even have low ROI. The best renovation rule is to stay neutral with upgrades and avoid specialized features. Specificity narrows the range of interested buyers. Additionally, extreme projects may seem like extra benefits to one person while another may view them as drawbacks, even lowering the offer price to cover costs of correcting the remodel. Consider these variables when preparing to sell a home and stick to low maintenance but traditional remodels for the greatest ROI.
1 Comment
Good advice! Thanks!