We’ve talked about some quick fixes to help your home sell, but if you’re thinking of making some larger renovations and invest a much larger amount, read this first.
Of course, you should choose to remodel your home the way that you want. But if increasing your home’s value is important to you now, or may be down the road, it’s important to consider that before making large scale reno choices. Here are the top three worst home renovations for the money:
1. Home Office Remodel
Average Price: $29,000
Average Return: 45.8%
Repurposing a room into a home office with serious updates such as built in floor to ceiling bookshelves tops the list for worst home fixes for home value- expect only 45.8% at resale. Times are changing- with laptops and more opportunities to work outside of home, like a coffee shop, the need for a designated room for work is decreasing. Also, home office remodels don’t excite potential buyers like other rooms, such as a home theater or updated kitchen would. If you are planning a office remodel however, make sure to choose finishes that would make it easy to convert back to a bedroom.
2. Room Additions
Average Price: $70,000
Average Return: 48.6%
Additions, like a sunroom or bathroom for example, are always risky investments because of their high cost. Yes, more square footage is always a great selling point. But an addition is a major renovation that comes with a major expense. HGTV reports that the average cost for a sunroom addition is about $70,000 and owners can expect to only see a return of about 48.6% when they go to sell. The average upscale bathroom addition return is about 60% (source). If an additional room is a must for you, always hire a professional and always, always pull permits.
3. Upscale Garage Addition
Average Price: $90,000
Average Return: 53.6%
Believe it or not, there’s a new trend in garages. Garages that are spacious, heated, easy to clean, with built in storage spaces, windows for natural light and some room for two or three cars has become a popular reno update in the past several years. But because of the high price tag (on average of about $90,000) and the fact that only a small group of buyers will want that upscale of a garage makes this a risky investment. Expect only 53.6% return on investment when you sell.
For more advice on renovations to increase your home value, or for answers for any of your real estate questions, please feel free to reach out!