Renovations that will hurt your house price tag!
Thursday Dec 01st, 2022
How many of you have decided of redesigning our own kitchen, bathrooms, floors, wall paints, etc, and how many of you got burned, when you were trying to sell your home, and the feedback in regards to those renovations was upsetting?
My goal is to share some practical tips, so you don't make the same, costly mistakes, as many people did.
The Most Important thing you need to make clear is, how long do you plan on living in this home?
Clear answer to that question will be a crucial on which way your "designing imagination" should go.
If your plan is to sell the property in the next few years, your "imagination station" should be going in one direction, and If you are renovating to live in the same property for many years to come (10 or more), feel free to release that imagination monster! :).
Things you need to be careful are design styles, material types, color palettes etc.
If you are planning to sell the house in next few years, don't spend to much on unique and expensive materials.
I am not suggesting you go "cheap". I am simply stating don't do Brazilian ebony hardwood floor, or marble, heated flooring in the bathroom, in a small townhouse.
The new buyers will not pay the premium because of it! If there is a similar townhouse in the neighborhood, with a simple oak hardwood flooring and nice porcelain tiles, for 50K less, they will go there, very likely. Even if they could afford it, what if they absolutely hate dark hardwood floors, or want black tiles in the bathroom? (I have many clients like that).
Some time ago, I've showed a property to my clients. The house was ok, but when we entered the kitchen, I was amazed by the mosaic backsplash that was done by an artist homeowner. However, my clients didn't share my enthusiasm, and didn't care much about the backsplash. Even though it was hard to put a price tag on something as unique as that backsplash, it seemed that my clients didn't share the same vision with the sellers. End result, we've moved on.
The moral of this story is that, one side may see it as adding value to the property, and another side sees it as a devaluing the property. Same goes for unique landscaping, pools etc.
Another example you should think twice before proceeding.
If you would like to have a kitchen with unusual colors, lets say pink, and you are planning to sell the house in next few years, i would strongly advise you to reconsider that decision. How many people are out there who would share the same style taste? If you are advertising the kitchen as a "newly custom built kitchen", and most of the buyers are not so fond of the pink kitchen, you might loose a huge market opportunity.
BUT, if you are planning to live in the same house for the next 10 years or more, GO FOR IT!! Design and enjoy your home to the fullest! By the time you decide to sell it, you will fully enjoy your investment and you wont feel bad if new buyers come in and paint it... blue... :)
There are some renovations that you should definitely do, and something you should NOT spend money on.
The rule of thumb is, if you are planning to sell in next few years, go neutral and/or skip some renovations, and let it be reflected in the price. If you are planing to live there for many years to come, go as bold as you like, and can afford, of course:)
If you would like to know more of what is good way of renovating your home and what could be a potential problem, feel free to reach out anytime.