When selling a home, there are many things owners can renovate or improve for a low cost, that generally add more value to the house than it costs to actually DO. However, there are many things that owners renovate TRYING to raise their home value, that actually cost more to complete than the value it adds to their home. This blog points out some of those "improvements."
Swimming Pools
Swimming pools are nice for a cool day, but not so nice for cash in your pocket when selling the house. On average, swimming pools cost $42,480 to build, however on average it only adds $21,483 to the sales price of homes. A 50% return isn't worth the investment if your goal is to add value.
Of course, having a swimming pool isn't just for value. Don't NOT add a swimming pool if you really want one because the return isn't great. Not everything has to be about the value! If you want a pool, you get yourself a pool. However if you plan on adding a pool simply to raise the price of your house, you're going to be severely disappointed.
New windows
If you have broken or leaking windows, get those puppies replaced. However if you plan on adding some extra dough to your sales price by completing replacing all the windows in your house... don't.
On average you get a 68.9% return on doing so, you'll most likely be losing money in the end with this game plan.
Bedroom to office conversion
These days, home offices are BIG. More and more people working from their houses, absolutely amazing. So buyers finding a house with a room specifically for work is a big win for these remote workers.
However, if this office was formerly a bedroom, you might've lost some money. On average, an extra bedroom is the better choice for adding value to your home than a home office, especially if you put in money to extra outlets or hardware. If you're planning on converting a bedroom into a home office simply for value, it might be a mistake.
Combining two small bedrooms to one
Now this may seem like a smart idea, you have two very small bedrooms that seem cramped, but they're side by side: light bulb! You can turn it into one BIG room, the bigger the room the more the value!
False.
Families with kids would rather their children have their OWN room, even if they are on the small side. In other agents experiences, each bedroom can add around 15% of value - despite the small size.
Sunroom Conversions
Sunrooms are like, my favorite room. However the average price it adds to your home vs how much sun rooms typically cost to renovate... not worth your time (if you plan on doing this for the sake of value).
The average price to renovate a room into a sunroom is $75,000 while the average price it adds to your home is $35,000. Not so good for your pockets!
Overall
View this list as a "what not to do to add value" guide, this is not a list telling you to NOT add these things to your house. If you plan on enjoying these things yourself, DO IT. This list simply exists to tell you what not to renovate for the sake of value. Do not do these things if the sole reason for doing is to add value.
In addition, this is not a rock solid list! If you can renovate a sun room for a VERY cheap price and make it look great, you might have yourself a solid investment. And another point, this list does not apply to flipping homes, that is a different story! This list is for the typical residential homeowner trying to improve value in their home!