4 Home Improvements That Don't Increase Home Value

December 06, 2010

Unless you plan to stay in your current home forever, you may find yourself thinking about home improvements in terms of resale value, or as real estate professionals say, "ROI" (return on investment). While some home improvements may be perfect for your family, they will do little to impress potential buyers. Read on to find out which home improvement projects generally don't add value to your home, and why.

Unseen Advantages

Like it or not, homebuyers are more likely to appreciate a home improvement they can see, rather than one that is beneficial but invisible. A new HVAC (heating, ventilation, and air conditioning) unit, for example, may be a necessity, but buyers probably won't want to pay for the upgrade. The same goes for new plumbing systems or anything else that a potential buyer would expect to be in good shape when they buy your home. Consider these expenses part of your home's upkeep, not necessarily an investment you will recoup upon selling your home.

Uneven Upgrades

Remodeling one part of your home with expensive materials and appliances while leaving another area neglected and obsolete is a definite "don't" in terms of resale value. Expensive upgrades make sense for an expensive home, but for mid-priced homes, skip the imports and stainless steel in favor of something more mainstream. And hopefully this way, you can extend the upgrades across the home.

Swimming Pools

Kids may love swimming pools, but many adults see them as an expensive hassle. Cleaning and maintenance are time consuming, and there's also the danger factor. Buyers with small children may be concerned over their child's safety in a home with a pool. Therefore many potential buyers would prefer a home without a pool, and may even choose to fill in the pool if they buy your otherwise perfect home. That means a zero percent ROI on a project that may cost anywhere from $10,000 upwards to install.

Over-the-Top Landscaping

Yes, curb appeal is important, and a well-manicured lawn may lure potential buyers to take a closer look inside. However, extensive landscaping probably won't add value to your home. If potential buyers are not avid gardeners, the elaborate landscaping may be seen as more of a burden than anything else. Keep it simple and you may that find your efforts pay off more.

Of course, there are no absolute rules for what sells a home and what doesn't. However, having some guidance in the world of home improvement ROIs may play a role in deciding which projects to pursue and which to place on the backburner.