It is every homeowner’s primary intention and goal to get a good ROI (Return On Investment) on all the upgrades and improvements they make to their property. Many of the homeowners try to add expensive and premium looking decorations/ add-ons to their home before listing it for sale.
But not everything you add to your home gives a good ROI, in fact, some renovations might even hurt the value of your property. These upgrades are not that cheap and must not be taken lightly. Here is a brief list of the most common mistakes homeowners make that might negatively affect your house’s value.
- Adding a swimming pool:
This first one is somewhat tricky. While adding a pool might be your go-to upgrade to earn a good ROI, it might actually prove to be counterproductive. Only add the pool if your client demands it prior to making a deal Otherwise you will never get the Return on your Investment you are looking for the minute the gunite cures. On the other hand, add your pool if you intend to enjoy it for at least several years.
- Focusing mainly on the kitchen and bathroom:
This is one of the most common mistakes investors and resellers make. A professional real estate seller would never overspend on kitchens and bathrooms. Most of the bathroom and kitchen décor offers very little to even no ROI at all.
There should be a limit to what you add to your bathrooms and kitchens. So, always consult an expert and add only those things which offer a decent ROI.
- Spending on overpriced things:
The pricing of your house must match the prices of your neighborhood property. So, try to spend decently and avoid overspending on useless expensive stuff. That would increase your investment input and would force a high price tag for your property.
If your price escalates too much as compared to your neighbors’ houses, that would force the clients to look for cheaper, more bang-for-the-buck alternatives.
- Not knowing about more “efficient” investments:
By efficient, we mean an investment that gives more ROI. The art of the deal is to spend just on 20% improvements that have an 80% or higher ROI. But most of the novice real estate investors never hire an expert and eventually end up overspending on useless, low ROI investments. So, always try to consult an expert before deciding where to spend your money.
These are just a few of the upgrades a home owner may want to avoid or at least consult with a professional before spending too much on the addition if your thought is to eventually sell. In a future post we will delve into upgrades that will return a good ROI. Covenant Realty Corporation has experts that can help you decide what you should and should not do with upgrades in your home, give us a call today. We want to be your “go to” source for all your real estate needs!