The Home Renovation Dilemma: 7 Features You Should Avoid Investing In

Home renovations can be a double-edged sword. While they often promise to enhance the value of your property, not all upgrades yield a return on investment. According to data from Forbes, the average home renovation costs around $41,600, with projects ranging from as low as $1,200 to as high as $82,000. As you consider which renovations to undertake, it’s crucial to be aware of features that may not appeal to future buyers. Here, we outline seven home features that are often deemed unworthy investments.

1. Converted Garages

The allure of transforming a garage into a den, office, or game room may be tempting, but this renovation can backfire. Real estate experts like Omer Reiner, president of FL Cash Home Buyers, emphasize that most buyers still view garages primarily as spaces for parking vehicles. Remodeling a garage can cost around $18,000, and you may find that it doesn’t significantly increase your home’s resale value. Instead, consider keeping the garage functional, allowing potential buyers to envision their own use for the space.

2. Alternative Dwelling Units (ADUs)

Adding an ADU, such as a guest house or rental unit, can seem like a smart investment, especially in areas with high rental demand. However, the average cost of installing an ADU is approximately $180,000, and there’s no guarantee of a return on that investment. Elizabeth Dodson, cofounder of HomeZada, warns that features altering vehicle and storage space can deter buyers. If you’re considering an ADU, weigh the potential benefits against the risk of alienating future buyers.

3. High-End Kitchen Appliances

While it’s easy to get carried away with the latest kitchen gadgets and high-end appliances, these features may not resonate with all buyers. Dodson points out that many prospective homeowners prioritize functionality and ease of cleaning over brand names. A major kitchen remodel can cost around $79,982, with only about 49.5% of that cost recouped upon sale. Instead of splurging on luxury appliances, focus on creating a functional and inviting kitchen space.

4. Built-In Shelving and Entertainment Systems

Built-in features can seem appealing, but they often restrict a buyer’s ability to configure their space as they wish. Dodson highlights the challenges of replacing outdated built-in appliances, which can require significant renovations to cabinetry. Solid wood shelving, for instance, can cost around $2,700, and removing it later may be necessary if it doesn’t align with a buyer’s vision. Opt for more flexible storage solutions that can adapt to various needs.

5. Niche Rooms

Specialized spaces like home gyms, wine rooms, or movie screening rooms may cater to specific interests, but they can limit your home’s appeal. Dodson advises against investing in niche additions, as they can occupy valuable square footage and deter potential buyers who may not share the same interests. Instead, keep these spaces generic, allowing buyers to envision their own uses for the rooms.

6. Swimming Pools

While a pool can be a luxurious addition, it often comes with significant maintenance demands that can deter buyers. The average cost of installing an inground pool is around $65,709, and many prospective homeowners may view it as a liability, especially families with young children. If you’re considering a pool, be mindful of the potential drawbacks and weigh them against your long-term plans.

7. Over-the-Top Landscaping

Investing thousands into elaborate landscaping may seem like a good idea, but it often doesn’t yield a return on investment. Al Ruggie, marketing director at ASAP Restoration LLC, suggests that basic upkeep—like mowing the lawn and pulling weeds—can be sufficient when preparing your home for sale. Buyers often prefer to personalize their landscaping, so avoid major renovations that may not align with their tastes.

Conclusion

When it comes to home renovations, it’s essential to think strategically about where to invest your money. While some upgrades can enhance your living experience, they may not translate into increased property value. By avoiding these seven features, you can make informed decisions that will benefit both your enjoyment of your home and its resale potential. Always consider the preferences of future buyers and consult with real estate professionals to ensure your renovations align with market demands.