Renovating your home? Not everything you do results in a good ‘ROI’

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Published Date 1/19/2022

When it comes to home renovations, there are ones you do for your own comfort or style, and those that can also mean more money in your pocket when you sell. Redfin’s Jenna Hall offers a checklist of changes to add, avoid or modify if you’re selling anytime soon and you’d like to see a decent ROI — return on investment — from your endeavors.

The first is to avoid removing closet space. Bedrooms are often determined by rooms that contain closets and the bedroom/bath count is one of the main factors that determines your home’s value. “It’s better to have a bedroom with a smaller closet than to create a large walk-in closet and lose a neighboring bedroom in the process,” says Hall. The alternative? Install closet organizers or create storage solutions like built-ins to make small closets more practical.

Love those fancy bulb-less LED light chandeliers that look like works of art? High end fixtures may upgrade the look of a home, but replacing your current fixtures with expensive alternatives is a home improvement that doesn’t add value. “Installing custom faucets, ceiling fans, or lighting fixtures may sound like an easy way to elevate a room in your home, but these improvements won’t increase your home’s value enough to cover the cost it takes to purchase and install them,” says Hall. “Plus, potential buyers won’t pay more for a home just for high-end fixtures.” She says it’s better to install affordable, high quality fixtures that offer a facelift without developing hole-in-pocket syndrome.

Sunrooms are more valued in some parts of the U.S. more than others. Some homebuyers love them while others find them unnecessary. Enclosing a patio or deck to create a sunroom can be expensive, and while it makes your house appear more spacious, it will not be included in your home’s square footage, thereby not adding to its value. What WILL add value is transforming your deck or patio into a great bonus area for entertaining guests. Spiff up the deck by re-staining it or throw an outdoor rug down on a patio, add plants and outdoor furniture, and make your outdoor space feel like an inviting oasis.

Bold wallpaper and creative accent/art walls are fun if you’re the homeowner who thought them up. But not everyone has the same taste, and some homebuyers may see your creative genius and consider it both time and money they won’t want to spend to change it back to “normal.” Move-in ready homes are represented as “project free,” so just the idea of having to repaint a wall may turn them away. If you do want to repaint, use neutral colors that can match any color palette. “This is one of the best home improvements that add value to your home and it is easy to accomplish,” says Hall. “Repainting walls in neutral colors creates a blank slate for homebuyers and it can make your home look modern and move-in ready.” Don’t want to sacrifice all those gorgeous saturated colors you love so much? Add them to the equation with throws, pillows, rugs and other accessories to brighten up the place but don’t come with the house attached to them.

People still see at least one bathtub in the home as a necessary feature, even if it’s not that old acrylic garden tub in the main bath that got ripped out in favor of a double-wide walk-in shower. Instead, leave at least one bathtub intact somewhere in your home, even if you want to tear out an old one and replace it with a newer variety. Some buyers may like soaking in the tub, and others may have small children that need regular (reachable) maintenance.

Avoid trendy. There was a time that orange shag carpeting, lime green bathroom, and foiled wallpaper were all the rage — kind of like midi-skirts, Fu Manchu mustaches and beehive hairstyles that arrived and left us with few people thinking nostalgically about them. “Trends tend to go out of style fast,” says Hall, who warns that features that seem novel to you might make your home look outdated in short order. While design trends are constantly changing, there are a few staples that will never go out of style: neutral paint colors, solid color tile, and simple decor will make your house look great to any potential buyer – no matter their style.

As for the kitchen, it’s tempting to replace outdated appliances with state-of-the-art appliances or stylized varieties (like refrigerators or stoves that look like the 1950s), but you’ll likely not get a good bang for your ROI buck. If you want to facelift your kitchen without major surgery, consider repainting or refacing cabinets, upgrading light fixtures, or swapping out the main kitchen faucet — all of which add value and appeal to your home while being budget-friendly.

While it used to be a necessary change-out when selling a home, replacing carpeting with more carpeting simply doesn’t fly well anymore. “Many homeowners are looking for homes with hardwood floors, and you don’t want to spend money installing brand new carpet just to hear potential buyers say they would prefer a home with hardwood throughout,” says Hall. “Homes with mostly hardwood floors often appraise for higher than homes that have equal parts hardwood and carpeted flooring,” she says, recommending installing hardwood or a hardwood alternative, like tile, to areas that need new flooring. “If you choose to stick with carpeting, install carpets that are neutral and budget-friendly.”

And lastly, a swimming pool is a feature that can get a sketchy return on investment. Depending on your location (homes with a pool in the Sun Belt will likely increase in value since it can be enjoyed year-round), Indiana or Minnesota homes will likely not see this same increase in value because some homebuyers may see this as something that can only be used a few months out of the year. The rest of the year they look like a covered hole in your yard. Pools are also considered liabilities rather than perks by many buyers. Not only can some moms picture their kids finding a way through the pool fence when they aren’t looking; it also takes time and money to maintain a pool.

Redfin, TBWS

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