The following Remodels in your home likely won’t increase your home value.
A home office – Now I’m not referring to simply throwing a small desk with a lamp on it in your guest room and calling it a home office. I’m talking about a full on, floor to ceiling renovation to make a spare room an actual working office. According to Remodeling Magazine, the estimated home office renovation costs $28,000. Unfortunately, in most cases, home buyers aren’t interested in home offices – it’s not a selling point and your return on investment will be incredibly low.
Master suite addition – Unless you are living in a neighborhood where home values are upwards of $1 million, adding a mini-hotel room and calling it a master suite won’t get you the return you want. Even a moderate suite addition of under 400 sq. ft., according to Remodeling Magazine, can cost near $100,000.
Adding on a bathroom – Remodeling Magazine estimates that a bathroom addition that adds to the square footage of the home and extends the foundation and roof will cost you almost $40,000. While bathrooms are one of the big things that buyers look for, adding on an additional bathroom will only yield you an average return on investment of 60%.
So what should you remodel? Well, the two big things that buyers usually consider high on the list of must-have updated items are kitchens and bathrooms, and the secret is to keep renovations moderately priced. Unless you are in a multi-million dollar neighborhood, chances are, your investment won’t see a full return if you choose to splurge for overly luxurious features. Keep in mind when renovating that a lot of it can be inexpensive – things like painting your room a different color or adding a statement wall can really change the feel of the room.
Want to know which remodels can add value? Check out our related blog post.
Don’t have a home to remodel yet? Check out our First Time Home Buyer’s Study Guide – it will tell you everything you need to know before you begin the search for your dream home.