If you’re planning on selling your home now or down the road, then there may be some home improvements and renovations you’ll want to tackle to attract potential buyers. But be sure to do your research, because focusing on the wrong home improvement projects could cost you. Here are six things that could actually depreciate your home’s value.
The majority of potential homebuyers have long preferred hardwoods over carpet—and Realtor.com says that the average return on investment for installing hardwood floors is 70 to 80 percent. What’s more, hardwoods can boost the resale price of your home by as much as 2.5 percent.
2. Heating & Cooling Systems
More and more homebuyers are interested in energy-efficient homes—and a recent National Association of Home Builders survey found that buyers are willing to pay an additional $8,728 upfront to save $1,000 in annual energy bills. When you’re updating your appliances, think energy efficiency and avoid skimping on good quality systems, even though it may be a big initial investment. It could be one that pays off in the long run.
3. Swimming Pools
Swimming pools are fun, but don’t expect your aquatic investment to match the return. Investopedia says that while a pool can increase the market value of your home, homeowners should only expect returns of between 15 and 25 percent for a pool that costs between $5,000 and $12,800.
4. Professional Landscaping
While landscaping can be an integral feature of the overall look of your home, putting a lot of money into your outdoor space could come with a downside. It’s often better to take a DIY approach to landscaping rather than hiring a professional. It’s also wise to maintain your yard all year long and avoid sinking a lot of money into personalized, custom features. Plus, potential buyers may view extensive landscaping as a burden to maintain.
5. High-End Upgrades
Every home needs an upgrade once in a while, particularly when you’re thinking of putting your house on the market. But keep in mind that it’s important to invest money in the right places. Installing stainless steel appliances or imported tile might not matter as much to buyers as new flooring would. Specific, high-end upgrades may appeal to some, but having a home that is both functional and livable is important to most prospective buyers.
6. Anything Trendy
It’s best to keep things simple when it comes to home décor in a house that’s for sale, and to always remember that not everyone shares your tastes. Try to stay away from bright paint colors, busy tiling, ornate fixtures, and patterned wallpaper. Your spaces should be minimalistic, neutral, and relaxing. Having too much going on in a space could be distracting to potential buyers.
No matter where you are on your journey to homeownership, Mr. Cooper can be a great partner. Learn how Mr. Cooper can help you buy or sell a home and get in touch with a mortgage pro today.