People are always searching for ways to add a new dimension to their house. It’s hard to argue with a new look or a new feel when it comes to real estate. After all, we do spend a large percentage of time in our homes.
Remodels are carried out all year and for wide-ranging reasons. However, some are a better idea than others. A specific topic I’d like to focus on involves remodels that are made when a sale is imminent or in the foreseeable future. Some additions just don’t make sense financially and can end up leading to lost money for the homeowner. Below I list the additions you may want to avoid if you plan on handing over your property anytime soon.
1. Jacuzzi.
We all love a nice hot tub after a hard day’s work, but whirlpools are a real estate addition you want to avoid if you plan on selling your house. Jacuzzis cost thousands of dollars and will not necessarily pay themselves off in a housing sale, particularly if the new homeowner isn’t sold on having one. A jacuzzi is something that you should hold off on buying until you know you will be in one place for a long period of time. It’s not the end of the world to sell your house with one, but if you do want to keep it, it can be a real haslle to transport.
The main reason: Jacuzzis are too permanent and too difficult to transport when a move is concerned. Wait until you are in a place that you feel comfortable long term before making this move.
2. Extra rooms.
It’s a common theme that people put a large amount of their focus on the number of rooms and the square footage of prospective houses during a search. However, this does not mean that if you own a house and plan on selling you need to add a room and increase square footage. The main reason is because adding a properly zoned room to your house can cost well over $100,000 after all is said and done, and this won’t usually be recovered on the closing date. Accept your house for what it is and try and focus on other upgrades if you are aiming to increase sale value.
The main reason: Adding a room is a renovation that is usually not worth it in the long run. Your house value will not increase more than the amount you put into the addition on most occasions. Think hard about this one before carrying it out.
3. Bathroom remodel.
This could be first on the list because it’s something you should almost always avoid if selling is even a remote possibility. Bathroom remodels are very expensive and can involve multiple contractors and major plumbing alterations. Additionally, bathroom remodels are often very personal in nature. If you are updating your bathroom, the project is most likely based on your specific preference. You should keep this idea in the back of your mind until you’re settled somewhere long term. You can enjoy it more this way.
The main reason: Bathrooms are personal and any alternation involving them comes with a serious price tag. Why carry out this upgrade when you won’t be around to enjoy it? Not to mention when it’s really expensive? This project is worth holding out for.
Upgrading a house is something that is surely part of the American Dream. However, any projects deserve a second look if a sale involving the property is imminent. These renovations are often much more expensive than they end up being worth in a sale. Keep this in mind when you think about making changes this spring.
Tim Richmond writes about the mortgage industry, real estate, green building, personal finance and home ownership. He currently writes for the Native American mortgage specialists 1st Tribal Lending.
