Many homeowners want to remodel parts of their home, but not every home remodel is created equal with return on investment. If you’re considering a home renovation, it’s best to steer clear of the remodels listed below if you want to make money when you sell.
Master Suite Addition
If you want to have a bigger master bedroom with a sitting area and huge closet, knock yourself out, but it won’t pay you back nearly what you put into it.
Experts say the typical cost of a medium-range master suite add-on is at least $130,000. But doing the work only adds $77,000 to your resale value, for a 59% cost recovery.
A high-end master suite is even worse from a financial perspective. A high-end addition of $270,000 returns only $136,000, or about 50%.
Bathroom Addition
There’s something to be said for remodeling a bathroom, but adding space often isn’t worth the cost. A medium-priced bathroom addition will set you back $47,000 with only $28,000 added at resale, or 60%.
A top-priced bathroom add-in costs around $87,000 and returns a mere $51,000, or 58%.
Backyard Patio
Adding an oversized patio is desirable for many people, and you’d think adding the usable space would pay off. But the average back patio addition costs $56,000 with $31,000 added at resale, or 55%.
High-End Kitchen Remodel
A minor kitchen upgrade can return 80% ROI but think again if you want to put big bucks into the job. A medium-range remodel costs about $66,000 and returns only $41,000, or 62%.
Wait, there’s more! A top-end remodel costs about $130,000 and returns $78,000 at resale, or only 59%.
Remodeling the kitchen is the most popular upgrade, but you’ll enjoy better ROI by not going overboard. Also, doing an expensive kitchen remodel that is beyond anything else in your neighborhood won’t have a significant return, either.
Home swimming pool maintenance cost
If you’re dreaming of relaxing by the pool in your backyard, it’s a great concept. But unless you live in the southern US, your investment isn’t worth the cost.
Pools cost big bucks to install, and the maintenance is an ongoing expense. Also, pools are hazardous; many people don’t know you can be sued for wrongful death if even a trespasser drowns in your pool. They’re also a hazard for children.
Houselogic.com reports your home’s value only increases by 7% when you install an inground swimming pool. Worse, an above-ground pool can lower your property value! Some realtors suggest giving buyers the option to take the pool out as part of the contract.
Sunroom
Adding a sunroom to your home has one of the worst ROIs out there, adding just 48% to your resale. Depending on the size, features, and materials, you can spend up to $50,000 on a sunroom.
That said, you might consider a sunroom in a sunny climate, such as Florida or Arizona. But remember that an unheated sunroom isn’t counted in your home’s square footage.
Garage Addition
Some home buyers like the idea of a three-car garage, but others don’t want or need it. The typical cost is $20,000 to $40,000 for a one-car addition. Unless you need the space for that Corvette, we advise you to skip this addition.
Built-In Theater
That built-in theater may seem incredible to you, but some buyers see it as a waste of space and a high utility cost. Remember that today’s modern electronics are antiquated in five or ten years.
Before you spend your money on that gorgeous pool or bathroom, take a few minutes to consider if the addition will add or detract from your property value.
