2020 Boise Idaho Real Estate Blog
Four Home Improvements to Avoid Because They Do Not Pay for Themselves Main Idaho Real Estate Insights

If home and garden shows are inspiring you to improve your house so that it has a revolutionary WOW factor, understand that it is expensive and the next buyer will not be paying full price for the upgrades you gave them.

Before you start a renovation fantasy, evaluate whether the renovation will pay back when you sell. Plenty of home improvements add value, like paint and windows but others do not do it.

Expand the Master Suite

Knock down a wall to open up and enlarge the master bedroom. Re-design the master bathroom to include the master closet to create a Master Spa. These grandios ideas may sound dreamy but what is the return on your investment when you go to sell? Losing a bedroom in a smaller house could mean a lower selling price. Also, once you take the closet out of a bedroom, to a buyer, that no longer looks like a bedroom.

Gourmet Kitchens

A high-end kitchen is the ultimate gift for chefs and people that love to cook and entertain; unfortunately, a massive overhaul will not impact the resale value as much as you might expect. A luxury kitchen renovation recoups just 54% of its cost in added value, according to Remodeling magazine's 2020 Cost vs. Value report.

Upgrading to marble countertops and top of the line appliances like Thermador or Wolfe, you could spend $60,000, and it doesn't  mean your house is worth an extra $60,000.

You are better off, at least investment and resale wise, to do a smaller kitchen upgrade. This will yileld a bigger payoff. Think granite rather than marble, and GE instead of Sub-Zero.

Wall to Wall Carpeting

Carpet is especially unattractive to first-time home buyers, who are used to landlords that update carpet between renters. So, carpet to first time home buyers could say  "rental" not "home", especially if it looks used or outdated!

It can also drop the price of your home by $3,900. And carpeting in the master bedroom causes a $3,800 plunge, according to Opendoor. Conversely, a 2019 report from the National Association of Realtors estimated that sellers could recoup the entire cost of refinishing hardwood floors. New wood flooring could actually add value, with sellers getting $1.06 for every dollar spent according to NAR.

Swimming Pools

Any pool can be seen as a drawback, infinity edge or above-ground. Buyers who don't want to deal with maintenance or insurance plus here in Idaho the season is actually pretty short for living in a desert. If you're thinking about resale, it's not worth it — you'll won't recoup the cost.

How to make and informed decision about upgrades and remodels

First, if you really want it, got to have or can't live without it, go ahead. Life is too short not to enjoy what you can have and afford. This post just analyzes the return on investment.

Timeline

If you're going to be in the home for 15+ years, you can do just about anything. Looking to sell in the near future? Pay closer attention to whether your choices will appeal to a potential buyer.

Talk to an Expert

Avoid making misinformed choices that are going to work against you in five to 10 years. An interior designer, contractor and real estate agents can help you better understand trends from future classics. A contractor can also explain what kind of work a proposed renovation would entail and costs.

Compare your home to others in the area

Look at comparable homes for sale near you and go to open houses to make sure your improvements align with the norms for your neighborhood. No sense in going Hollywood when you live next to the Clampets?

Interested in a free home valuation?

 
Posted by tlangford at 2/13/2020 9:31:00 PM
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Michelle Penick, Build Idaho Client Real Estate Services

Michelle Penick

Client Care Team
208.629.0217
[email protected]

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