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If you're renovating your home solely to increase its resale value, you may be disappointed. Most home improvement projects do not provide a full return on investment (ROI), and some can even detract from your home's appeal to future buyers. According to the Remodeling 2024 Cost vs. Value Report, only a handful of projects—like garage door replacement—consistently boost value. This article outlines 11 common upgrades that often fail to pay off financially, helping you prioritize maintenance and targeted updates over costly, trendy renovations.
Why Don't All Home Improvements Add Value? Buyer preferences are subjective and change over time. A feature that seems desirable today might be considered dated in a few years. Furthermore, big-ticket items like major remodels rarely recoup their full cost. The most reliable way to protect your home's value is through consistent maintenance. Research from Thumbtack suggests a well-maintained home can sell for about 10% more than a similar home in average condition.
Which Renovations Offer a Poor Financial Return? Based on recent sales data and industry reports, here are 11 projects that may not pencil out when you sell.
1. Will an All-White Kitchen Help My Home Sell? While a fresh, neutral kitchen is appealing, an entirely white kitchen can be a detriment. Industry research into paint color preferences found that white kitchens can actually hurt a home’s sales price. Today's buyers often prefer darker, neutral tones like charcoal gray. If you love a white kitchen, consider repainting in a more modern neutral before listing.
2. Is Adding a Walk-In Closet a Good Investment? Converting a bedroom into a spacious walk-in closet is typically a poor financial decision. A home's value is heavily influenced by its bedroom count. Our 2024 analysis of listings data indicates that while walk-in closets are nice to have, they are associated with a slight decrease in value (0.5%). A bedroom is almost always more valuable to a buyer than a closet.
3. Does a New Deck Increase Home Value? A new deck enhances your living experience but not necessarily your sale price. The Cost vs. Value Report estimates that a wood deck costing around $17,600 only adds about $14,600 in value at resale. Composite decks have an even lower ROI. Build a deck for your enjoyment, not as a financial investment.
4. Should I Convert My Garage into a Bedroom? Generally, no. Garages provide valuable storage and secure parking, features that listings data shows carry a slight sales premium (0.3%). An exception might be converting the space into a permitted Accessory Dwelling Unit (ADU), a self-contained living area, which is growing in demand for rental potential. For most buyers, however, a garage is a more significant asset.
5. Is a Swimming Pool a Good Investment? A pool is the ultimate lifestyle upgrade, but its ROI is highly variable. Installation costs, including fencing and landscaping, can exceed $30,000. While saltwater pools can help a home sell slightly faster and for a bit more in certain markets, they can also be a liability for buyers concerned with maintenance and safety, potentially limiting your buyer pool.
6. Can Poor DIY Work Hurt My Home's Value? Poor-quality do-it-yourself (DIY) projects can significantly detract from value. While many small projects are DIY-friendly, complex tasks like tiling or flooring are best left to professionals if you lack experience. A botched job will force buyers to factor in the cost of repairs, lowering their offer.
7. Does a Bathroom Remodel Pay Off? Bathroom remodels are expensive and offer a low ROI. The Cost vs. Value Report indicates a mid-range remodel ($58,500) may only return about 35% of its cost. The more luxury features you add, the lower the percentage return tends to be.
8. Is Wall-to-Wall Carpeting a Good Choice? While comfortable, new wall-to-wall carpeting is not a selling feature. Listings mentioning new carpet actually sold for 0.2% less than comparable homes. Buyers show a stronger preference for hard-surface options like luxury vinyl plank (LVP) flooring, which can command a small premium.
9. Should I Install Laminate Countertops? Laminate countertops, despite improved designs, are not a value-add. Homes sold in 2023 that mentioned laminate countertops sold for about 1% less than comparable homes. For a better return, consider quartz or granite alternatives.
10. Are High-End Fixtures Worth the Cost? Splurging on ultra-high-end faucets or light fixtures is unlikely to influence a buyer's decision. They are a personal preference, not an investment. Choose cost-efficient, attractive, and well-made fixtures for updates instead.
11. Do Storm Shutters Add Value? While climate-resilient features are gaining popularity, storm shutters are falling out of favor. Homes with them sold for about 1% less and took longer to sell. Buyers may see them as an aesthetic negative or an unnecessary feature.
Practical Advice for Homeowners Focusing on regular maintenance is a more reliable strategy for preserving value than undertaking major, speculative renovations. Key tasks include cleaning gutters, resealing grout, and servicing HVAC systems. Before starting any project, consult a local real estate agent to understand what features are truly valued in your specific market. Ultimately, the best improvements are those you will enjoy, with a clear-eyed view that you may not recoup the full cost.
