Home improvements can be a great way to add value to your home. However, it’s essential to understand that not all upgrades will have the same return on investment (ROI). Choose updates that add value if you plan to put your home on the market. Here are a few improvements with a low ROI.
Updates and Improvements with a Low ROI
Installing carpeting improves the look and feel of any room in your house, but it won’t necessarily increase its value when you’re ready to sell. Carpeting is an inexpensive option for flooring because it doesn’t require as much labor or materials as hardwood floors. Still, many buyers prefer hardwoods because they are easier to clean and last longer than carpets. That means investing in new carpeting won’t necessarily offer a good ROI at resale time.
Swimming Pools and Hot Tubs are Improvements with a Low ROI
Adding a swimming pool or hot tub can be an excellent way to make your backyard more enjoyable. However, these features may not give you much return when it comes time to put your house on the market. Prospective buyers often view swimming pools and hot tubs as costly investments due to their maintenance costs, and buyers with young children may see a pool as a safety hazard, so they might shy away from them when shopping for homes.
If you’re considering a luxury bathroom remodel, ensure the investment is worth it. While home improvements can boost property value and add comfort and convenience, some renovations have a lower return on investment (ROI) than others.
A luxury bathroom remodel is one of these projects that may not substantially increase your house’s value. This update usually involves extensive renovations, such as adding tiles and installing new fixtures, lighting, and plumbing systems. Luxury remodels also require costly materials such as marble countertops and custom cabinets, making it an expensive undertaking with no guarantee of increasing the resale value of your home.
However, if you plan on staying in your house for many years, investing in a luxurious bathroom is worth considering for personal enjoyment.
While some home improvements offer significant returns at resale time, others don’t guarantee the same value, at least not from a financial perspective. If you’ll live in the home for several years, installing updates and modifications to keep you and your family comfortable is expected. However, it is important to understand prospective buyers may not see value in your improvements. Knowing which projects have a low ROI can help you decide how best to spend your money when considering renovations for your home.
HomeSpec provides home inspections for customers in North Mississippi and Southwest Tennessee. Contact us to request our services.