What NOT to do (if you want ROI when you sell)

In a recent post we looked at renovations that generate the highest return on investment, such as painting, kitchens and baths. This month, let’s look at the flip side. What upgrades are the least likely to pay back when you sell.

 

 

 

 

 

 

 

 

 

Let’s start by eliminating the whole area of “value in use” where the homeowner’s perception of the value exceeds market value and/or the cost of the upgrade. Some examples of this would be things like lap pools or squash courts or car lifts; expensive things that have a very limited appeal.

But there are other, more common upgrades that generally will not create a return on investment. 

Pools. Pools are expensive to install but not everyone wants a pool. There is liability associated with them and they require time and money to maintain. A pool will probably only net between 10-40 percent of the cost upon resale.

Skylights. Skylights may let the light in, but won’t increase the value. A skylight will generally return less than 25% of the cost upon resale.

Broadloom. Wall to wall carpet is considered dated by today’s buyers. Hardwood or laminate flooring is preferred.

High end appliances. Nice, new appliances are expected in a home. But super high-end or commercial quality appliances, things like Wolf or Aga stoves, walk in fridges, or Vulcan ovens will not add back in value what they cost to install.

The other thing to keep in mind is that your upgrades should never be at the expense of basic functionality.  If you can expand your master ensuite bath or walk-in closet, that’s great!  But don’t do it by reducing your three bedroom home to a two bedroom home or you will lose out at resale.