Protect your home’s value: Avoid these renovations
There’s been a boost in at-home renovation projects within the past year. While remodeling expenditures are slowing down, they are still a hot ticket item within the market.
The Leading Indicator of Remodeling Activity released in July forecasts “year-over-year gains in remodeling expenditures to owner-occupied homes will decelerate from 17.4 percent in 2022 to 10.1 percent by the second quarter of 2023.”
“While beginning to soften, growth in spending for home improvements and repairs is expected to remain well above the market’s historical average of 5 percent,” Abbe Will, associate project director of the Remodeling Futures Program, said in the report, “In the first half of 2023, annual remodeling expenditures are still set to expand to nearly $450 billion.”
But before you make your next renovation, ensure that it will help and not harm your home’s value. GoBankingRates has 20 examples of some. Start by skipping these five projects.
UNIQUE LIGHTING FIXTURES
Good lighting is essential but they need to be functional rather than ornate.
“For example, an oversize hanging light is out of place in a small to medium size Great Room or living room – since the fixture will just overwhelm the entire space – just as a too-small fixture will be dwarfed by a space that too large and voluminous for it,” house plan website The Plan Collection said.
LUXURY BATHROOMS
It’s important not to go overboard with bathroom upgrades.
“Potential buyers could be scared off by bathroom remodel mistakes like over-personalized finishes and over-the-top whirlpool tubs that are hard to clean and hard for some people to climb into,” GoBankingRates reported. Keep it simple with a walk-in shower with a rain shower head.
BRIGHTLY COLORED ROOMS
“Just because a color is popular in magazines doesn’t mean it will add value to a house in your area,” Tulsa, Oklahomabased real estate agent Paul Wheeler told HomeLight. “Cutting edge colors only work in cutting edge areas.”
Luckily, fixing it is just a matter of another paint job.
HOME OFFICES
Many people have been working from home in the past year, but that doesn’t mean you should get rid of your spare room in favor of an office. The renovation costs may not be worth it.
HIGH-END KITCHENS
Many people enjoy topof-the-line kitchen appliances but only to an extent. New Jersey-based retailer Designer Appliances says on its blog that not all homes will see an increase in resale value simply because of updated appliances.