For nearly a decade, the real estate market has been in a huge slump and many people have decided to wait it out and not sell their home. That said, many of these people are developing plans to add-on, so that when the market does come back, they will be able to sell quickly and for profit.
There are a great many additions that you can install in your home if you want to increase its value and overall salability – if you plan to move some day. However, there are some projects that might seem like great ideas, until the day comes to sell and you find out you wasted thousands of dollars and are now stuck in that home.
This article is going to break down some of the money-pits you could find yourself in if you aren’t careful!
In-Ground Swimming Pool
Time Magazine placed the average cost of a pool right around $22,000, but depending on size and type of pool installed, can reach up to $75,000. It may seem like a great idea, because you’ll make it back, and then some, when you sell in a few years – right?Well, not necessarily.
According to The Wall Street Journal, an in-ground pool can boost your house value by around 7.7 percent – but, that is dependent on your region.For example, if you live in an area with a traditionally hot climate (Southern California, the Deep South, etc.) you may recoup about 30 to 50 percent of your investment. If you live outside of these areas, you can forget about even making that much.
Many potential buyers view a pool as an expense that they do not want to take on, and may filter your home out of their search options based purely on the presence of one.
It may seem like a dream to come home from a hard day of work and take a dip into your huge whirlpool bathtub. While that is likely true for most people, if your intent behind the installation is purely profit-driven you may be mistaken, many buyers will not pay extra for a new whirlpool bath. Often times, homeowners will install the luxury bathtub only to find that they also have to invest in a larger hot water tank for it operate properly. Additionally, you may incur extra charges, such as a higher energy bill or monthly maintenance costs.
Home Office Remodel
The average person with an average family don’t need luxury home offices. Fixr estimates that it costs around $28,000 to complete a full home office remodel – with only a 46 percent return on this renovation, it is not an ideal choice if you are looking to get your money back. Technology moves at a rapid pace and quickly becomes outdated, so investing in expensive rewiring or other home office amenities may need to be replaced and won’t generate additional income at the time of the sale.
The average family can turn any unused room into a home office, if they need it. If you must add-on to the home, try a pleasant mood-lighting setup.
It makes sense for a homeowner to add amenities to their set up if they are going to be their long term. In the same way that a commercial natural gas standby generator makes sense for a business owner to install. They are practical and important to the future of the owner. But, if reselling is your main objective when purchasing a home, you should stay away from the above installations.