Updating your home can be a rewarding process, but if you’re thinking about selling in the next three to five years, it’s crucial to avoid spending money on updates that don’t add value. According to Jen Sylvester, a YouTuber and realtor, not all home improvements are created equal. In a recent video, she highlights the top updates that won’t give you a good return on investment.
1. High-End Landscaping and Hardscaping
Sylvester warns against over-customizing your landscaping with features like koi ponds, water features, outdoor kitchens, and custom barbecues. These elements can be expensive to install and maintain, and they typically appeal to a small audience. Elaborate gardens may also deter potential buyers who are not interested in high-maintenance yards.
2. Swimming Pools
While swimming pools can be a valuable addition in some regions, Sylvester advises caution. In the Northeast, for instance, pools add little to no value. Even in southern states where pools are more common, over-customizing with hot tubs or unusually shaped pools can limit your home’s appeal. It’s essential to research what’s typical in your area before investing in a pool.
3. Solar Panels
Solar panels are great for the environment and can reduce energy bills, but Sylvester points out that the return on investment is usually low. The average ROI for solar panels is only about 10-20% of the installation cost, with a recapture period of 6-12 years. If you plan to sell your home before recouping these costs, it may not be worth the investment.
4. Sunrooms
Sunrooms can be a delightful addition, but they rarely offer a good return on investment. Basic sunrooms, like screened-in porches, or fully insulated, heated rooms, often don’t recoup their costs. Sylvester recommends considering whether sunrooms are common in your neighborhood before proceeding with this kind of update.
5. Unusual Paint Colors
Customizing your home with bold or unusual paint colors can make it feel personal, but it may not appeal to potential buyers. Sylvester advises sticking with neutral colors if you’re planning to sell soon. You may need to repaint or remove wallpaper to attract buyers, and you won’t get back the money spent on those custom colors.
6. Carpet Flooring
Carpet is becoming less popular as buyers prefer hardwood, laminate, or other solid surface flooring. If your carpet is old or needs replacing, Sylvester suggests not opting for more carpet. Replacing it with more desirable flooring options can make your home more appealing to potential buyers.
7. Combining or Converting Rooms
Merging two bedrooms into one or converting a dining room to a bedroom can reduce your property’s value. Sylvester emphasizes that the number of bedrooms is a critical factor in property valuation. Converting garages into living spaces can also detract from your home’s appeal, especially in regions where garages are essential for weather protection or storage.
8. High-End Updates in Modest Homes
Over-improving a single area of your home while neglecting others can lead to inconsistency and lower returns. Sylvester advises against investing heavily in one room, like a luxury bathroom or kitchen, if the rest of the home is outdated. Consistency in the quality of updates throughout your home is key to maximizing your return.
Prioritizing Smart Investments
At the end of the day, your home should reflect your personal tastes and needs. However, if you’re looking to sell in the near future, it’s crucial to make smart investment choices. Avoiding these costly updates that don’t add value can help ensure you get the best return on your hard-earned money. As Sylvester suggests, consult with a real estate agent to understand buyer demands in your area and make informed decisions about your home improvements.
These insights from Jen Sylvester highlight the importance of careful planning and consideration when it comes to home updates. By prioritizing the right projects, you can enjoy your home while also ensuring it appeals to future buyers.
Balancing Taste with Resale Value
What are your thoughts? How do you balance personal taste with potential resale value when making home improvements? What factors would influence your decision to invest in an update that might not offer a high return on investment? Are there any home updates you regret making because they didn’t add value or were too costly?
Explore the full insights by viewing the video on Jen Sylvester’s YouTube channel here.
