If you’re thinking about an FSBO and are considering renovations, take caution: not all upgrades are created equal. In terms of increasing your home’s value, not all remodels yield positive results. In fact, some may be downright detrimental.
To help you determine where your hard work will actually pay off, Home Avenue has put together this list of remodels to avoid. Before you go knocking down walls and ripping up your floors, peruse this guide to get the biggest bang for your buck.
1. Bathroom Remodel
Bathroom remodels are among the top five choices for home renovations, but do they actually increase your home’s value? Unfortunately, the answer is no. In fact, the average bathroom remodel costs homeowners anywhere from $8,000 to $15,000 depending on the materials chosen. But when it comes time to sell, those same homeowners only see an average of a $12,000 increase in the value of their homes. Maybe you’ll gain a couple thousand dollars, but chances are, you may lose a few thousand, too. Bathrooms are one remodel that’s just not worth it.
2. Pool Addition
Adding a pool to your home rarely increases its value. Most pool additions cost homeowners around $24,000, and they rarely raise the value of the home more than the cost of installation. Some pools may even cost tens of thousands more than this estimate, making them an unwise addition if you’re looking to increase your home’s value. Instead, opt for some upgrades to your backyard landscaping.
3. Additional Rooms
Adding rooms to your home can cost a pretty penny. Room additions can cost homeowners up to $100,000, but they rarely see a positive return on their investment. In fact, many homeowners only see a 66 percent return on the money they’ve spent. Adding additional rooms may make your home more enticing to buyers, but your return will depend on the location and current market. If you upgrade your home to the point that it out prices other homes in the area, potential buyers may think you are asking too much.
4. Major Kitchen Renovation
Major kitchen remodels typically only net homeowners about two-thirds of what they spent sprucing the place up. The average cost to completely remodel a kitchen can run around $60,000 while the return is generally around $40,000. Instead of tearing everything out and replacing it all, try adding small touches like new lighting fixtures, hardware, and paint. These simple touches will freshen up your kitchen enough to entice buyers, but won’t break the bank and leave you in the hole.
5. Transforming Bedrooms into New Spaces
Reducing the number of bedrooms in your home is never a good idea. Transforming a bedroom into a master suite addition or a walk-in closet will do nothing for the value of your home. If you work too hard to impress buyers with novel add-ons, you may fail to deliver a home with enough practicality. Consider the other homes in your area and the number of bedrooms they feature. If your home is in the same ballpark, then leave the bedrooms the way they are.
Contact Home Avenue for Real Estate Services and Cash Back Rebates
If you’re looking to sell your home, Home Avenue is here to help. We offer flat-fee real estate services throughout Minnesota to make sure you get both expertise and value. In addition, we also offer cash back incentives through our rebate program. The more you sell your house for, the higher the rebate!
With over 25 years of experience, thousands of satisfied customers and millions of dollars saved in commissions, we know what it takes to sell your home. If you’d like to learn more about our services, contact us at 952-929-7355, or you can message us at info@homeavenue.com.