Steer Clear: These 5 Home Improvement Projects Won’t Pay Off

Remodeling a home can get pricy.

Because of all the time and money invested, we’d all like to think that every home improvement project will add to a home’s resale value, but not all renovations offer a good return. Some just aren’t worth it in the long run. So, if your plan is to ultimately increase the value of your home, you may want to avoid these five upgrades.

5 Home Improvement Projects to Avoid

1. Remodeling the Bathroom

Remodeling magazine estimates that the cost of a new tub, sink, tile, toilet and labor can cost homeowners as much as $18,000. Sure, when you’re done, you may have a luxurious spa escape right in your own home, but don’t expect your house value to increase by the full amount you spent on the remodeling project for the bathroom. In terms of increased value, the magazine’s Cost vs Value Report shows that homeowners tend to recoup less than 66%.

Sure your bathroom may feel like a spa, but don’t expect it to pay off.

Instead, focus on smaller upgrades such as knobs, fixtures and showerheads. Even if you don’t recover 100% of the money spent, at least you’re not thousands of dollars down.

2. Adding Another Room

Adding square footage can come with a hefty price tag. You’re looking at anywhere from $40,000 to more than $115,000. Sure, you’ll gain more space with an extra room, but don’t expect to gain any extra value when it comes to your selling price. According to the report, most room additions only recoup about 65% of their costs.

Instead, look for ways to maximize your existing space. Hire an interior designer or architect to help…and if that doesn’t work, it may be a good time to start searching for a bigger home.

3. Major Kitchen Overhaul

A major kitchen upgrade such as new stainless steel appliances, custom lighting and imported tiles can be a dream come true. But these features can add up fast. The average major kitchen remodeling project can cost close to $60,000 with an added home value of only about 65%.

Instead of a major kitchen remodel, consider minor kitchen remodels that cost less than half of your major upgrades. Replace hardware, cabinet doors, and fresh coats of paint and you’ll see an average of 85% in return of the value.

4. Swimming Pool

Building an in-ground pool can cost as much as $30,000 (more if you want a hot tub or other fancy features). Maintaining the pool will cost you even more. Although the value added varies by region (depending on if residents can enjoy the pool year-round in warm states such as California, Arizona and Florida), but don’t expect your house value to soar after the installation. When you’re looking at recoup numbers as low as 30% of the cost of installation, it could seem more like a belly flop.

Don’t let your remodel project take a belly flop, do your research first.

Instead, if it’s a water feature you’re after, consider adding a small, eco-friendly pond to blend in with natural surroundings (and that will require much less maintenance).

5. Wall to Wall Carpeting

Some may think that “new carpeting” sounds like a selling point, but many homebuyers today may turn the other way. From health concerns due to carpet chemicals and trapped allergens, to the carpet style and color, the price you paid to purchase and install brand new carpeting isn’t going to pay off.

Instead, remove the carpet and restore the wood floors to attract more home buyers (and even get a bigger asking price).

Make Smart Home Improvement Choices

In the end, it’s up to you to choose between the home improvements you would really love to have (like the in-ground swimming pool) vs the projects that prove to be a better investment (like the minor kitchen remodels). Seek the advice of a qualified real estate professional to help you avoid costly projects that won’t directly add value to your home’s resale value.