Top Ways Homeowners Devalue Properties

Homeowners devalue properties in a number of ways. Most of the time, it’s due to over-customization. Making the house too unique and out of the ordinary. But, devaluing a property can take different forms. Sure, if you’re in a house to stay for the rest of your life, some of these won’t do much harm. However, if you’re going to sell sometime in the future, you’ll need to take these things into serious consideration. If you don’t understand the consequences, you just might bring on big time issues. So, it’s best to know what’s most risky.

Best ROI Home Improvements

Every year, Remodeling Magazine conducts a survey to uncover home improvement trends and to learn which changes return the most (and least) money at resale. At the very top, bringing back more than its cost at over 100 percent is new insulation. Yes, it’s true. New insulation is the highest ROI performer. Installing new exterior manufactured stone veneer fetches over 90 percent ROI.

“Most homeowners think that all renovations or home improvement project ideas will increase the value of their property. After all, who wouldn’t love a super-deluxe kitchen, or a bathroom fancy enough to be in a five-star spa? Sure, we’d all love that. But the problem is that most people don’t want to pay extra for someone else’s pet project when it comes to buying a home. Homeowners should of course invest in renovations that are going to make them happy and improve quality of life. It is “home” after all! But if you’re going to be putting your home on the market any time soon or are in the business of flipping houses, certain upgrades could end up doing you more harm than good.” —US News and World Report

Also capturing over 90 percent is a new garage door, along with a new steel entry door. An upscale or high-end garage door likewise hits about 90 percent. But, not all deliver the same way. For instance, a master bedroom addition, a sunroom addition, and even a bathroom addition, all perform quite poorly.

Top Ways Homeowners Devalue Properties

But, although the later home improvements don’t return very much on investment, they do get something back. However, there are certain home improvements which actually decrease the overall value of a house:

  • Subpar renovations. Practically any sort of shoddy or unfinished work will do damage to the value of a house simply because of what it is. So, if you do chose to renovate, be sure to do it right or be prepared to take a substantial loss.
  • Garage conversion. Some homeowners believe that adding more livable square footage is always a good thing. It isn’t. If you convert a garage into living space, you’ve given up a fully functional space. Plus, you’re adding square footage where it doesn’t belong. You might even “over-build” for the neighborhood and that’s going to decrease the house’s value.
  • Irregular home maintenance. Little things add up quickly. And, if you let small things go, when it comes time to sell, you’ll have to fix every single issue, no matter how small. If you don’t, the house simply won’t sell at its otherwise normal asking price. Buyers will just move on and look for a less hassle-free property.
  • Above-ground pool installation. Okay, so a swimming pool isn’t that unique here in the Sunshine State. In fact, pools are ubiquitous. And, even an in-ground pool is a poor ROI performer. But, an above ground pool actually cause an 11 percent drop in value.

If you are considering buying or selling a house in Orlando’s Hunter’s Creek, or another community, contact us for the latest market information. We are local and experienced in all facets of residential real estate, here to help you, when you need it.