Don't Make These Upgrade Mistakes!

Is it possible to spend money on your home only to end up losing value on the upgrades? Short answer: Absolutely. Unfortunately, many homeowners fall victim to this predicament. While making upgrades to your current property can be exciting, not taking the time to research and verify which upgrades are the best can put you in an unforeseen financial hole. 

There are typically two ways in which you can lose money or value in your home by upgrading it. The most common way is by spending too much on certain remodels and no recouping your entire expense. We see this happen when people go ham on bathroom or kitchen upgrades that include the finest appliances and materials when more mid-range products would have sufficed. 

The second scenario is when you lose functionality due to an upgrade or remodel. For example, if you have a 3 bedroom house and the master is small so you decide to combine it with one of the other bedrooms to give you a grand master suite. You may not need the 3rd bedroom and prefer a huge master, however, we know that on the turnaround, most buyers are looking for a 3 bedroom house vs a 2 bedroom, and therefore you have just de-valued your property.

Below is a list of upgrades that will likely be downgrading your value.

5 Home Improvements That Could Hurt Your Home Value

Improper Tiling

Tiles can be unique. It's not uncommon for someone to want to go bold or eccentric with certain patterns or placements throughout the home. Many times you'll see different tiles in the kitchen than in the bathroom, and different tiles on the floor than in the shower. While sometimes that is ok, the look and feel of the tiles need to co-exist. If you have too many patterns throughout the home, it will jumble your buyers and make it appear like a disaster that's going to be expensive for them to fix. Remember, we want to aim for consistency and neutrality. 
 

Themed Bedrooms

Just to be clear, we love kids! SO we understand that most parents are happy to create the coolest bedroom possible for their little ones. It's certainly fun to see the excitement on your kid's faces when they walk into a Dora the Explorer or Transformers bedroom. However, make sure you plan on spending the money to either turn the room back into a neutral setting or expect the new buyers to have to account for that expense themselves. Even if they have kids themselves, they might not have the same interests or be in the same age range. 
 

Garage Conversion

In theory, it gives you so much room for activities. (Insert funny Step Brothers scene). You can convert to more living space, an alternative den, another bedroom, a gym, or your own private bar and pool hall. All nice things to have if you are doing it for your own enjoyment. In the long run though, most buyers are going to need it for cars or storage. Just like the themed bedroom, the new buyers may not have the same interest as you. (i.e. working out, game room) It's best to keep the garage the way it is or even better, spend a little money to epoxy the floor and build organizational shelving.
 

Swimming Pool

Let me preface by saying, we work in sunny San Diego. Most of the homes here are a short drive to the ocean. That being said, even when taking data from across the country, pools have proven to be a bad return on investment. For one, they are expensive to install. Usually, they start at $25,000 and go up from there. Add built-in slide, lagoon feature, or waterfall and you can bet that invoice will increase dramatically. As for demand, it's a bit of a mixed bag. You have the issue with high maintenance costs, and, of course, parents with young children see it as a safety hazard. Not to mention, you'll need it to be fenced in completely in order to obtain home insurance. 

Luxury Finishes

I touched on this in the beginning but can't stress how important it is to consider your market area when deciding on material cost. It's not that I'm recommending cheap products. I'm simply suggesting you take some time to think about if your new buyers are going to care if you have Viking appliances in the kitchen. If you are in a starter home neighborhood that is in line with the county or cities median home value, it's best to keep it mid-range on your upgrades.

I should note that in addition to being a real estate agent I'm also a licensed contractor. If you are considering a remodel before listing your home, reach out to me and I'm happy to give my two cents about it. I am here as a real estate resource first and foremost! - Justin Brennan



 
​​​​​​​