5 Upgrades With the Lowest Return
1. Inconsistent High-End Upgrades
Upgrades should be consistent throughout the home, and consistent with your home’s resale value. In high-end homes where the renovations are consistent, high-quality upgrades generally do increase the value of the home. However, in a mid-range home or a home with inconsistent upgraded (ie hand painted tile imported from Italy in the kitchen, but laminate counters in the bathrooms), you are not likely to see a return.
2. Expanded Owner-Suites
Most buyers LOVE walk-in closets, and expect to see them in the primary bedroom. However, expanding into one of the other rooms might not be the best option for resale. If the expansion turns your 4-bedroom home int a 3-bedroom home (or if you take up other valuable living space), you’ll likely not recoup the cost if you go to sell.
A general rule in real estate is, the more bedrooms a home house, the higher price it can demand. If you take away a bedroom, your home will be priced against homes with the lower bedroom count, regardless of how much you spent creating that dream walk-in space.
3. Custom Features
While having a custom-designed bar with three functioning taps is an awesome feature to have for some (yes, talking about my own personal house), it’s not a feature everyone will love. Not every buyer is going to have the same lifestyle you do, or the same taste. While you might enjoy being able to have your favorite beer on tap, buyer’s aren’t necessarily going to pay extra for that; some buyer’s might even want to offer less because they’ll look at the cost of changing that area into something they do want or would find useful.
4. Solar Leases
While it might not have cost you anything to have those solar panels installed, most buyer’s do not want to assume a solar lease. Generally speaking, the solar lease often only benefits the original signer, with many leases having price escalators after a few years. Some leases will allow for a buy-out of the lease, however, it’s often costly and doesn’t provide any of the tax benefit you would have received had you purchased the system to begin with. Buyers also have to qualify for the new lease, and agree to all terms – it complicates the transaction and since the buyer has to essentially pay for it (in monthly fees), they don’t consider it an upgrade.
5. Wall-to-Wall Carpeting
I think this is pretty well known, but most buyer’s don’t want to see extensive carpeting throughout the home. Let’s face it, carpet is kind of gross… it stains, pet hair sticks to it, it absorbs smells… etc. Buyer’s don’t want to be reminded of the people or pets who lived in your home! You’re better off with hardwood, LVP, or engineered wood for a better return when you sell.
