Here are 5 renovation mistakes to avoid for resale
Homeowners may want to tap the brakes on those trendy white Carrara marble countertops if they’re looking to get a return on investment for home renovations.
That’s according to a recent report from NerdWallet, which pulls from Remodeling magazine’s 2019 Cost vs. Value report when stating, “An upscale kitchen renovation recoups just 59% of its cost in added value.”
Next on the list is one that’s more likely for the average home seller: DIY painting. The report cites data from Opendoor asserting that a low-quality paint job can result in the seller losing out on as much as $1,700. This may be bad news for the 47% of homeowners who stated at the beginning of last year that they were more likely to take on a project than hire it done.
And while various HGTV shows may have homeowners ready to bust down some walls, the NerdWallet report advises against it in regard to an expanded master suite. If the renovation results in the loss of another bedroom, sellers could end up with their home listed at a lower price point.
The last two items on the list may not be as surprising. Plush wall-to-wall carpeting and the addition of a swimming pool could end up costing homeowners. According to the report, carpet as the main flooring in a home drops its value by almost $4,000. A swimming pool, on the other hand, may deter buyers who are turned off by the potential maintenance.
However, these warnings may be needless in 2020, as a recent report from Harvard University’s Joint Center for Housing Studies stated that U.S. homeowners are expected to spend less on renovations and repairs over the next year.
That said, Arizona-based iBuyer Offerpad recently released a feature that allows homebuyers to customize their homes before moving in. Let’s just hope those homebuyers take a look at this list first.