Are you looking to renovate your home to increase its resale value? With real estate values skyrocketing in many housing markets nationwide, a home is no longer just a place to live – it’s become a major investment for most families.
And it should come as no surprise homeowners are looking to cash in. Turn on the TV and tune into HGTV and there are countless shows on housing flipping. While these shows make the reno process look easy, it’s important to carefully consider and choose your renovations if you’re looking to sell in the near future.
While some renovations like improving your kitchen and bathroom or adding new windows usually provide a decent return on investment, there are others that can actually hurt the resale value of your home. Here are five renovations that could prove to be a costly mistake.
Times have changed since carpeting was a must-have in a home. While wall-to-wall carpeting may still be tolerable in basements, most buyers will see it as a burden on the main floor. Buyers today would rather have hardwood floors than carpeting, which is also prone to odors and stains. If you have hardwood floors in decent shape hidden underneath your carpeting, you can boost your home’s value by tearing up the carpeting and exposing them.
A lot of buyers today are looking for a low-maintenance property. While you may enjoy gardening, others may see looking after the grounds as too much maintenance. While you can improve your home’s curb appeal by mowing the lawn and watering the shrubs, you shouldn’t expect a higher selling price because of an elaborate garden display.
3. Swimming Pools
While you may enjoy a nice refreshing dip in the swimming pool on a hot day in July or August, a lot of buyers won’t share your enthusiasm. Not only is an in-ground swimming pool expensive – it can set you back between $10,000 and $100,000 – a lot of buyers simply don’t like them. Additionally, if the pool is not properly fenced in along with other safety precautions a swimming pool is a lawsuit waiting to happen, you’ll pay higher home insurance premiums because of it. Unless you’ll be living in your home for many years, you should really think twice about installing a swimming pool in your backyard.
While you may enjoy having bragging rights about owning the most valuable home on your street, there’s such a thing as overbuilding. With a chronic shortage of single-family homes in Toronto and Vancouver, a trend for homeowners is to tear down their old home and build a new custom one. While a new home may appeal to some buyers, sometimes it can be like a fish out of water in some neighbourhoods. For example, if most homes are selling from $350,000 to $450,000 on your street and you list your home for $700,000, buyers make balk at the high selling price. You might actually end up selling your home at a loss – ouch!
5. Hidden Renovations
You may need to rewire your home or install new plumbing, but don’t expect to recoup all of your investment. While those renovations may be essential to the upkeep of your home, a lot of buyers today care more about cosmetic upgrades. That’s not to say you should let your home fall to pieces, but you should be smart with the renovations that you do. Since these renovations are hidden, don’t be shy about mentioning them on your listing when your home goes on the market, so buyers will at least know about them.
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