Home improvement projects are popular among homeowners. Some people hope to improve the appearance of their property, while others are working towards an increase in property value for a future sale. Not all upgrades add value. Here are a few projects with a low ROI.
Swimming Pools are Projects with Low ROI
While swimming pools are fun and relaxing, potential homebuyers often see them as an excess expense and a feature requiring constant maintenance. Home insurance costs rise with the installation of a swimming pool. A swimming pool usually lowers the property value because of these factors.
You may enjoy your backyard pool, but don’t expect a buyer to feel as excited about it.
If you run a business from home and have an extra bedroom, you might convert that bedroom into an office or craft studio. While this is useful for you, it won’t add value if it makes the room hard to use as a bedroom. Homebuyers often shop for houses based on the number of bedrooms they need. If you opt to convert a bedroom, make sure the changes are easy to undo before listing.
Projects with Low ROI: Installing Carpet
There are many options for flooring in your home, but one material you want to avoid is carpet. Carpeting is difficult to clean and harbors allergens like dust mites, pollen, and mold.
A popular trend is removing carpeting and installing hardwood floors. Hardwoods are cost-effective upfront and provide a higher return on investment in the long run.
It is important to make the most of your space, which is why some homeowners choose to convert their garage into an additional living room, an extra bedroom, or a game room. Because the garage usually lacks plumbing and electrical, you can easily spend a lot on this improvement project. Some buyers prefer a functional garage over additional living space. Unfortunately, this usually leads to a lower return on investment.
Converting a bedroom or garage, adding a swimming pool, and installing carpet are just a few improvement projects that don’t add value to your home. Before renovating, take the time to review the ROI for each project. You can also check the local real estate market to learn what features appeal to homebuyers.