Be Wary of Four Renovations that Decrease Home Value
As sellers encounter a lack of Florida home mortgage enthusiasm, many look to renovate their abodes. The thinking makes sense: pretty up my residence and people will flock to it. Such enhancements will also increase the home’s value.
Not always, however. If you own a fixer-upper, or any type of house, think twice (or three times) before making the following changes. They could actually bring down the price of your home.
The Swimming Pool
In some areas, especially hot-weather spots such as Arizona and the Florida housing market, a pool is a must-have. In the Southwest, adding one boosts your home’s value by 11 percent on average, according to a National Association of Realtors study.
But elsewhere it can just as easily turn off buyers. How is this possible? Many will worry about affording the upkeep and insurance. Moreover, if the potential buyer has a family with small children, think long and hard before installing a pool.
“People with younger children may be leery of houses with pools for safety reasons,” says Barry Graziano, a real estate agent with Prudential Rand Realty in White Plains, N.Y. “I’ve had families walk away. A pool can cut down on the number of people who will want to buy your house.”
The Addition
It’s true, that great room and master bedroom wing will let the family spread out. But what you probably haven’t considered is what the space will look like from the outside.
“A badly designed addition can kill your resale value,” says Sal Alfano, the editorial director of Remodeling. “People focus on the floor plan and the flow, but not on how it fits into the neighborhood or even the house itself.”
Watch out for boxy, poorly detailed additions. Proportions matter.
Trendy Finishes
When you invite potential Florida mortgage loan applicants into your open house, be careful of a style that will look dated. Spotting the trend that’s on its way out is trickier than you think. While it’s easy to assume that sleek red European kitchen cabinetry is tomorrow’s harvest gold fridge, for example, other design staples that seem like sure bets can quickly drift into obscurity, too.
That’s what Mark Johnson, a Whirlpool design manager, says is happening to stainless-steel appliances. “For a period of time, people aspired to a commercial kitchen,” he says. “What I am seeing is more interest in warmer finishes.”
You want a design trend with legs. Johnson says custom panels that dress appliances in maple or mahogany finishes are likely to remain popular for several years.
The Jacuzzi
We know, we know: how can a hot tub ever be a bad thing?!? Won’t this increase the chance of a home sale? But while an elaborate master bath is okay, a big circular tub with 15 jets that can pulse or massage is risky.
According to Holly Slaughter, brand manager at RealEstate.com, you’re better off with an oversized shower that has a rain showerhead and multiple jets. Busy boomers have little time to spend hanging out in the bathtub, and parents with small kids prefer a conventional tub.
This may seem like small notes, but sellers need every advantage they can get in the current, buyer’s market. Studies show that you have a better chance at finding Florida home loan applicants and meeting your asking price if you avoid these four renovations.
