Raising your property value is foremost on many owners’ minds. When you’re selling a home, you should be looking for anything that may give an edge or increase your property value. However, it is not always as simple a matter as adding to the home or giving it extra amenities. Some features may have a neutral or even negative effect on a home’s value. Here are some common home improvement projects that may not increase your property value.
May Not Increase Property Value: Sun Room, Deck, or Patio
Patios, decks, and sun rooms are some of the most popular exterior additions for a home, both for use and for seeking value. They are not, however, equal in terms of the actual value that is added. Unsurprisingly, the cost to add or fix these features is the most prominent concern. Patios tend to be the least expensive, followed by wooden and composite decks. You are unlikely to pay more than $15,000 for a deck or $6,000 for a patio. Repairs or maintenance to existing structures cost even less. Meanwhile, a sun room will likely cost upwards of $75,000. While it is possible to recoup nearly the entire value of a deck or patio, the large price tag of a sun room makes it highly unlikely to see an equal return on investment when selling your home later on.
Pools vs Hot Tubs
Pools and hot tubs are both water features that homeowners feel may increase the overall value of their property. However, they are tricky to appraise and value properly. Some buyers seek out homes with these features, but others may be entirely turned off by the added cost, maintenance, and risk. Buyers are also going to take if your pool is not following your local building codes into account. In general, a pool will add more value, especially here in Florida. For a hot tub, the difference is whether it is permanent and built-in or portable and removable. Portable hot tubs will usually have less value. Often times, it would be considered a used hot tub, regardless of when it was bought. In this case, it may be best to sell it independently or take it with you if possible.
May Not Increase Property Value: Extensive Professional Landscaping
Landscaping may be somewhat of a catch-all term, but when discussing value, it can have a big impact. Some attention to landscaping is always a plus. A tidy lawn, well-placed shade trees, trimmed bushes and shrubs, and colorful flowers are all bright spots and help the property look great. Less value comes from major projects, including water features like koi ponds and waterfalls or extensive gardens. The high amount of maintenance and upkeep required of extensive landscaping, plus potential dangers to small children with water features, tends to scare off more buyers than it attracts.
Ultimately, when it comes to selling a home, not all features are equal. Some tend to add a lot of value, especially compared to their upfront costs. Other renovations tend to be neutral or even detrimental to the value. Understanding the long-term outlook of a new project can help you make an informed choice on what home improvements to make to increase home value.
Here’s another article you might like: Staging: Why It Matters and How to Do It
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The Southwest Florida Real Estate Investment Association is the leading source of SWFL real estate investing events that provide investment education and networking in southwest Florida. We analyze the housing market and foreclosures and provide information, education and networking events in order to build a network and knowledge base for investors and potential investors. Our members include real estate agents, brokers, investors, hedge fund managers, rehabbers, wholesalers and more.
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One of the premier sources for real estate investing networking and education is the SWFL REIA. In the real estate world, the SWFL REIA is different in that it does not do information product sales. Their meetings are focusing on the best ways of investing in real estate by collaborating with other property investors who are sharing their experiences.
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