A common misconception about selling your home is that you need to make upgrades to increase value. More often than not, you end up losing money on renovations. It usually costs thousands of dollars to make improvements, and the overall value added to your home is oftentimes less than the cost of renovating.
Luckily, Home Avenue has put together a list of what upgrades we think you should avoid when you are selling your home. If you’re considering a For Sale By Owner (FSBO) approach and want to get the highest value possible, explore this list to learn from the experts.
- Bathroom Renovations
Though remodeling your bathroom may seem enticing and may appear like an obvious choice to increase the value of your home, that’s just not the case. Most bathroom renovations cost the average homeowner between $8,000 and $15,000, depending on the work being done and the quality of the materials being used. On average, bathroom renovations add about a $12,000 value to your home, so you may end up losing money in the long run
- Kitchen Renovations
On average, complete kitchen renovations typically cost about $60,000, while only providing a $40,000 return. Although tearing out everything and replacing it may seem like the thing to do when you are selling, it is much simpler and cheaper to upgrade an appliance here or there. Installing new light features, adding a new coat of paint, or upgrading the floors are simple, affordable ways to add value and liven up your kitchen.
- Room Transformations
It is unwise to transform your home’s bedrooms into different spaces. Most buyers are looking for a certain number of bedrooms in their new home. When you renovate existing bedrooms into a master suite or walk-in closet, it will most likely not add value to your home. In fact, it will probably take away from the value of your home. Do the proper research to ensure your home is similar to or more appealing than other homes in the area.
- Home Add-Ons
While adding space and rooms to your home may seem enticing and will likely increase your value, you will more than likely lose money on the project. Home additions usually run around $100,000, and return just over half that much when it comes time to sell. The average seller receives just a 66% return on most home additions. The value additions add to your home depends on the area and clientele, meaning, you should do your research before deciding on an addition.
- Pool Additions
Though a pool may seem like it would lead to increased value when you are selling, it often just drains the money you put into it. Most pool additions cost $20,000 to $25,000, and the only return the seller gets is usually just on the installation cost. Instead of adding a pool, which will likely decrease the value of your home, consider revamping the landscaping in your yard to entice buyers.