It is understandable for home sellers to think that any home renovation project they undertake will automatically result in an increase in home value, and thus a higher selling price.
However that is not always true.
While some home upgrades can help sellers increase their property value there are also those that will not. And in some instances, a few upgrades can actually make selling your home more difficult.
So before you start throwing money at upgrading your home make sure you know which upgrades are worth the cost and, maybe even more importantly, which upgrades are not worth the money.
Yes, curb appeal is important. And yes, landscaping contributes to attractive curb appeal. But there is a big difference between a well-landscaped home and a home that looks like it needs a dedicated landscaping crew to maintain.
Investing in extensive landscaping can signal to potential buyers that the home is high-maintenance and expensive. As a result, this upgrade can actually backfire by scaring buyers off.
Best House on the Block
While it might make sense to renovate your home to be the “best on the block” this strategy can make selling more difficult. If when you are upgrading your home to be the best you overdo it, you can potentially price yourself out of your neighborhood.
If the prices of homes in your neighborhood are well below what your upgraded home value is, buyers could see your home as over-priced relative to the market.
Installing a Swimming Pool
Who doesn’t love a nice dip in a pool on a hot day? Well, you might be surprised that most buyers are not looking for this.
Like landscaping, pools are a lot of work to keep up with. And “a lot of work” usually translates into “a lot of money.” With buying chemicals, higher electric bills, insurance premiums, and everything else that comes with the pool, sellers could be cutting off a significant amount of buyers by adding this upgrade.
In theory, “custom” is nicer than “cookie-cutter.” But this only holds true if the buyers have the same exact taste as you. Customizing your home to reflect your specific likes and interests is great while you are living there but can be a big hurdle when trying to sell to buyers who do not have your same tastes.
Just as with customizing your home’s design, knocking down walls to accommodate your lifestyle can be a great feature for when you are living in the home. However when the time comes to sell, not having that extra bedroom because you knocked down a wall to make an in-home recording studio could be a tough sell for buyers needing a specific number of bedrooms.
Before you go out and spend thousands of dollars on wall-to-wall carpeting make sure you understand that your potential buyers might be interested in wood flooring. Or maybe they have a different taste in colors than you do. Whatever the situation might be, you should not upgrade just to upgrade and this thinking applies to carpeting your entire house as well.
When it comes to getting your home sold fast, sellers need to put themselves, and their homes, in the best possible situation to succeed. Included in this is understanding what upgrades to make and which to avoid. So before you make any decisions be sure to understand your local market and where your home could benefit most from smart upgrades.