Many people justify remodeling their homes by convincing themselves that they’re boosting their property value. Unfortunately, there are a few home modifications that will never recoup their initial costs. If you’re selling a home this season, make sure to avoid these four bad investments:
1) A Swimming Pool – A swimming pool is far and away the poorest real estate investment a homeowner can make. Although they’re rewarding to use, they’re also very costly to maintain, and as a result many buyers will refuse to pay more for a house just because it has a pool. When you consider that the going rate for an in-ground pool is around $30,000, it all becomes clear: this is one luxury that you should simply forget. A pool won’t help your property value.
2) Gaudy décor – Colorful paint jobs and lots of assorted knick knacks might be your style, but they’re sure to be a turn-off for any interested buyers. When selling a home, you should make it look as neutral as possible. This means avoiding bold patterns, screamingly bright colors and anything you think looks “exotic.” Seriously, you’ll thank us later.
3) New Windows – Installing new argon-filled windows in your house is a great way to improve its insulation, but a poor way to raise your property value. Double rung windows cost at least $200 per item plus a hefty installation fee that you won’t see a return on. Unless your windows are so bad that they’re detracting from your property value, its best to leave them alone.
4) Landscaping – Gardens are great, but you’ll never recoup the cost of planting one, even if your buyer has a green thumb. The same goes for hardscaping like stone walls, paths and fences. While they look pretty, buyers won’t add them into their value equation when making you an offer.
These real estate investments aren’t necessarily bad financial decisions. If you want a swimming pool or an elaborate garden because you enjoy them, then by all means spend your money. However, if the only reason you’re putting money into these things is to see a return on your property value, you should make the right decision and keep your wallet in your pocket.
