Renovations That Could Decrease the Value of Your Home

Adapted from The Daryl King Team – http://www.darylking.ca

Often, renovating can be a great way to increase the resale value of your home. While it may not always be possible to recoup the full cost of renovations, upgrades and improvements to your home can speed up the selling process and ultimately earn your property a higher price tag. And then of course, there’s also the added advantage of being able to enjoy the updated space yourself for a certain time if you renovate before putting it on the market.

But in some cases, renovations can be disadvantageous. Not only will they not substantially increase your bottom line, they could actually decrease the value of your home if they give potential buyers a negative first impression.

Some buyers might be inclined to make changes to the property themselves until it is to their liking, or are willing to look the other way on features they don’t like if the other benefits of the property outweigh the down sides… for example, a highly desirable location. But if many similar homes nearby are also on the market, your supposed improvements might cost you a sale.

If you don’t plan on keeping your home forever, it’s generally best to keep your renovations tasteful and neutral to ensure they will appeal to the broadest possible selection of potential buyers when it comes time to put your property on the market. In a 2015 Cost vs. Value report conducted by Remodeling magazine, it was found that the renovations that bring the greatest return to sellers are new entry doors, new garage doors, and a new stone veneer exterior. Conversely, additions of a sunroom or of a bathroom and remodeling to create a home office were found to bring the smallest returns.

Below are some examples of things you could do to your home that might damage its selling price and make it stay on the market longer.

1) Converting a garage: Though converting a garage into an alternate living space can be a cheaper alternative to building an addition, many buyers would still prefer the original garage to an extra room. This is especially true in cold and rainy climates, where the room will never warm up properly.

2) Eliminating a bedroom or a powder room: Since many of today’s homeowners prefer large, open spaces, combining an older home’s smaller rooms into a larger living area might add to the property’s overall value. However, turning a bedroom into a walk-in closet, or creating a large master suite by combining two bedrooms, could harm the value of your home, as you are losing out on living space. It is almost never a good idea to eliminate a powder room… think of your guests’ comfort!

3) Personalizing too heavily: We all want our homes to reflect our personalities. But if you bring touches to the property that are too precise or unique, such as customizing the space with unconventional furniture or appliances, remember that such changes may not appeal to everyone.

4) Adding too much colour: If you’re a fan of colourful walls, be prepared to paint over them in a neutral tone when it’s time to put your home on the market. Everyone has strong preferences when it comes to colour, and potential buyers can easily be put off by anything too bright or striking. Neutral colours are a simple way to avoid a negative first impression.

5) Putting in a pool: We don’t all live in year-round sunshine. If your home’s location is subject to cooler and more volatile weather, it is less conducive for a pool. They can be costly and a source of hassle for their owners who have to close their pools during colder months, and re-open them every time the seasons change. Knowing this, potential buyers might not view a pool advantageously, seeing only the additional upkeep/maintenance costs instead!

6) Renovating without a permit: Permits for major, and sometimes even minor, renovations are required in almost every municipality. Therefore ensure that all improvements to your home are up to code. Ask to be provided with copies of permits – particularly discerning buyers will know to ask about them, and inspections are mandatory in some cities before a home is sold. Unpermitted renovations can ultimately incur additional costs if the city issues a fine or later decides the work needs to be redone.

Green Living: Home Renovations

So, you’ve bought yourself a new home. But it may not necessarily be new, and renovations may need to get done. This generally happens if you end up buying a home that’s more than 10 years old. But instead of completely renovating the entire house or entire rooms in the house, take a good look and see what really needs to be renovated, and what rooms just need a few things here or there fixed up. Not only will you be saving yourself some money by doing this, but you’ll also be going green and helping the environment.

Kitchen Renovations

Not too long ago, a client of mine purchased a great loft that was about 10 years old. The kitchen was original and needed some freshening up. We had spoken about it while we were viewing the home before they purchased it and I had suggested a couple of ways to achieve that on a budget. Once they had moved in they felt a bit overwhelmed and called me for advice. I went over to their loft and showed them that the kitchen was modular–made of those white boxes that attached to the wall. All they needed to do was measure the existing cabinet doors and replace them with doors of the same size. The hinges on the doors were modern, only 10 years old, so I suggested they keep those too. They would have been pitching them and replacing them with the similar hinges. They wanted to go with a different cabinetry colour so I pointed out the veneer exterior on the side of one cabinet that they would have to purchase, and the kick plate.

Redoing an entire room in your house when it isn’t necessary isn’t only a waste of money for you, but it’s also not good for the environment. While there are recycling centers or places that will refurbish old floors or cabinets, most of the time people will end up throwing out their old cabinets or flooring at a waste center. Sending it to a waste center will end up releasing even more toxins and waste into the environment. In Canada you can donate to Habitat for Humanity and they will repurpose your kitchen in affordable housing.

Are Renovations Necessary?

One of the first things to think about, even before you buy your home, is to figure out if a complete renovation is even necessary. You’ve heard me say, “live in the space for a year to figure out how you use it” and this applies to changing a floor plan or updating a kitchen design. Sometimes, it just takes a quick paint job or refinishing to get your new kitchen cabinets looking fresh and new, but if the kitchen layout doesn’t work for you take notes and keep them in a file to help you redesign when the time comes. Buying environmentally friendly appliances, cabinets, paint, etc. is easy these days. Buy recycled materials when renovating and redecorating your new home. The big trend now is to use reclaimed wood on the floor, doors, furniture and accessories. Gorgeous!

Save Your Money!

Making sure that you’re investing in the right things for your new home is important. Where you may just need to refinish your floors instead of buy brand new ones, you could put the money towards home staging, new furniture or renovating a room that actually needs it. Ask the advice of your real estate agent when looking to buy an older home. Most likely, they’ll have some ideas on what you can do to save your money while making your home environmentally friendly.