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4 Renovations That Kill A Home's Value |
4 renovations that kill a home's value
As the housing market cools, you need to think twice about these upgrades.
By Gerri Willis, Money Magazine contributor
NEW YORK (Money Magazine) -- Read a home decorating magazine or watch a cable-TV home improvement show, and you might easily conclude that any upgrade will pay off when you sell.
Not so.
Even in good times, not all projects have widespread appeal. You'll earn back virtually your entire investment in a kitchen or deck, but less than 75 cents on the dollar if you add a home office or sunroom, according to "Remodeling" magazine's annual cost vs. value survey.
What's worse, some renovations can even hurt you in the eyes of home buyers, a costly problem if you hope to sell in a softening market like today's.
The Swimming Pool
In some areas, especially hot-weather spots like Arizona and Florida, a pool is a must-have. In the Southwest, adding one boosts your home's value by 11 percent on average, according to a National Association of Realtors study.
But elsewhere it can just as easily turn off buyers, who worry about affording the upkeep and insurance. And if the most likely buyer of your home is a family with small children, think long and hard before installing a pool.
"People with younger children may be leery of houses with pools for safety reasons," says Barry Graziano, a real estate agent with Prudential Rand Realty in White Plains, N.Y. "I've had families walk away. A pool can cut down on the number of people who will want to buy your house."
The Addition
You've thought about how that great room and master bedroom wing will let the family spread out. But what you probably haven't considered is what the space will look like from the outside.
"A badly designed addition can kill your resale value," says Sal Alfano, the editorial director of Remodeling. "People focus on the floor plan and the flow, but not on how it fits into the neighborhood or even the house itself."
Watch out for boxy, poorly detailed additions. Proportions matter.
Trendy Finishes
Be careful of a style that will look dated when you throw your open house. Spotting the trend that's on its way out is trickier than you think. While it is easy to assume that sleek red European kitchen cabinetry is tomorrow's harvest gold fridge, other design staples that seem like sure bets can quickly drift into obscurity too.
That's what Mark Johnson, a Whirlpool design manager, says is happening to stainless-steel appliances. "For a period of time, people aspired to a commercial kitchen," he says. "What I am seeing is more interest in warmer finishes."
You want a design trend with legs. Johnson says custom panels that dress appliances in maple or mahogany finishes are likely to remain popular for several years.
Also, think about the materials for hardware like hinges and light fixtures. Polished brass or anything shiny is out. Brushed nickel is a better option. Johnson is betting that oiled-bronze finishes will take off next.
The Jacuzzi
The elaborate master bath is okay, but the big circular tub with 15 jets that can pulse or massage is risky.
According to Holly Slaughter, brand manager at RealEstate.com, you're better off with an oversize shower that has a rain showerhead and multiple jets (think of it as a car wash for humans).
Busy boomers have little time to spend hanging out in the bathtub, and parents with small kids prefer a conventional tub. Ultimately, don't expect a future buyer to pay up for the luxury you considered an essential. About AuthorOwnChicagoHome.com
Source: ArticleTrader.com
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