When you improve your home by making renovations, you’re increasing its value and can expect to get your investment back in the form of a higher resale. Right?
A recent article in Forbes suggests that this is not always the case, and it offers some tips on what kinds of renovations will NOT allow you to recoup your costs. In general, these tend to be highly personal customizations that make the home more attractive to you, but do not provide much value or benefit to a future homeowner who may not share your tastes or preferences.
Start with making major changes to the layout of the home. One example is eliminating a bedroom in order to create a large master suite. The problem here is that some buyers are going to want a certain number of bedrooms in their next home and might eliminate yours from consideration. Or they may want that huge bedroom split back apart so they can have a guest bedroom for older kids who might be visiting.
Another example is eliminating a bathtub in order to create a large luxurious shower. The article says that getting rid of all the bathtubs in your home can turn off potential buyers. Why? Families with small children most likely want a bathtub in the house.
The article is particularly hard on hobby rooms, where you display your passion for jewelry making or woodworking. The obvious message: it is unlikely that the next buyer will share your same exact passion.
Beyond that, some people overspend on choices that the next buyer wouldn’t even notice, like an all marble slab bathroom compared with a bathroom with one slab focus wall and matching tile. Customized shelving, built-in media consoles and Murphy beds tend not to be worth the price when the house goes on the market.
This article was written by an independent writer for Brewster Financial Planning LLC and is not intended as individualized legal or investment advice.