We’ve all been there – you get that extreme “Extreme Makeover: Home Edition” itch to completely renovate and transform your living space into the home of your dreams.
But don’t go rushing to your nearest Home Depot just yet! Some overzealous home improvements can actually make your property worth less when it comes time to sell.
So before you start swinging that demolition sledgehammer or scheduling contractors, try to learn more about the renovations that could seriously devalue your house.
1. The Bedroom Banisher
Converting bedrooms into other spaces like home offices or walk-in closets is one of the biggest home value killers. Each bedroom typically adds 10-15% to a home’s sale price, so removing even one can significantly decrease what buyers are willing to pay. (ref) You may love your cavernous closet, but families want those extra bedrooms.
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Potential buyers look at the number of bedrooms as a key selling point. Sacrificing one for your personal taste makes your home less appealing and functional for the masses. Unless you plan on being in the home forever, keep those bedrooms intact.
2. A Luxury Bathroom Fit for Royalty
There’s upgrading a bathroom, and then there’s going totally overboard into Buckingham Palace territory. Lavish touches like towel warmers, jetted tubs, and floors/walls made of rare imported materials are a huge turnoff for many buyers. They see it as impractical and too costly to maintain long-term.
You may have visions of your own personal spa oasis, but the average homebuyer wants a nice, functional bathroom – not one dripping in opulence. Keep renovations simple and neutral if you want to retain resale value.
3. Over-Customization Galore
Speaking of personal taste, any highly customized or quirky design choices tend to alienate buyers down the road. That wild, patterned wallpaper you adore? Most others will see it as an eyesore to remove. The built-in aquarium separating the living and dining rooms? Probably not going to be a huge selling point.
When it comes to renovations, the more unique and unconventional you go, the smaller your pool of interested buyers becomes. Stick to inoffensive design choices with widespread appeal to retain maximum value.
4. Inconsistent Upgrades & Mismatched Styles
Imagine walking into a home with a brand new, top-of-the-line kitchen…and then seeing the bathroom is straight out of the 1970s. It’s jarring, right? Buyers want a cohesive look, not a home with one extremely lavish space and other areas lagging behind.
The same goes for mismatched design styles and materials throughout the house. It can make everything look disjointed and sloppy. Any major renovations should fit with the overall aesthetic and quality level to avoid devaluing the entire property.
5. Garage-to-Living Space Conversions
You may be tempted to convert your garage into an extra room, home gym, or apartment, but this renovation rarely pays off. Most buyers want a garage to park cars and have storage space. By eliminating that, you make your listing much less appealing in their eyes.
6. Removing Closets for More Room
Along the same lines as not getting rid of bedrooms, you also don’t want to remove closet spaces. Ample storage is a must-have for the majority of homebuyers. By sacrificing closets to create more open room elsewhere, you’re drastically reducing your home’s functionality and value.
No matter how clever you think your storage workarounds are, buyers will see ample closet space as a requirement, not an inconvenience. Keep those closets intact when renovating to retain resale value.
7. In-Ground Pools: The Divisive Water Feature
Pools are a prime example of a renovation that is very subjective – some buyers love them, many see them as a hazard and money pit. An in-ground pool can cost $30,000-$50,000 to install, with high ongoing maintenance costs. (ref) For that investment, you likely won’t get much added value when selling.
Unless you live in an area like Arizona where pools are the norm, they’re generally not worth the cost and hassle for most buyers. An above-ground pool that’s easily removable is a safer investment if you crave a water feature.
8. Combining Rooms for an Open Concept
There’s been a huge trend towards open concept floor plans in recent years. But achieving that look by knocking down walls and combining smaller rooms like bedrooms is inadvisable if you want to retain value. The more self-contained rooms a home has, the better for resale.
Reducing the total room count makes your home’s layout less flexible and functional, especially for families. An open concept can look nice, but not at the expense of losing defined spaces that provide privacy when needed.
9. Highly Specialized Rooms
Speaking of inflexible spaces, any highly specialized rooms or features are a major red flag for buyers. Home theaters, wine cellars, safe rooms – they may be cool amenities if you’re an enthusiast, but they provide no added value to the general population of homebuyers.
These super niche spaces just get written off as wasted square footage by most. Unless you live in an area with a strong market for such specific amenities, they’re best avoided if you want a good return on investment.
10. Removing Parking Spaces
If your home didn’t come with a garage or other off-street parking options, the last thing you want to do is eliminate what little parking you do have. Buyers expect a place to park their cars, so removing spaces or converting garages into living areas is a major no-no in most markets.
11. Elaborate Landscaping Nightmares
While basic landscaping like trimmed trees, planted flowers, and a green lawn can boost curb appeal, going overboard is a fast way to turn off buyers. Intricate garden designs, koi ponds, waterfalls and other high-maintenance outdoor “enhancements” just look like a chore to the average homebuyer.
Your meticulously manicured Japanese garden may be a point of pride, but most will see it as a reason to knock money off their offer to offset the future costs of upkeep. Stick to simple, low-maintenance landscaping for best results.
12. Bright, Bold Colors Everywhere
A fresh coat of paint in a neutral color like greige can make a home look bright and updated. But using loud, bold colors like purples, greens and reds tends to turn buyers off universally. They see it as an extra project to repaint everything when they move in.
While pops of color can look great as accents, overwhelming a space with bright tones is a major turn-off. Buyers want a blank canvas they can move into without having to do a full repaint right away. Stick to inoffensive shades when renovating to maximize value.
The Bottom Line on Value-Killing Renovations
So there you have it – the worst home improvements that can actually make your property worth less.
From over-customization to eliminating rooms and parking, some renovations just don’t pay off in the long run.
But by keeping things relatively neutral and focused on improving livability without going overboard, you can update your home while still protecting its resale value. An experienced real estate agent can provide further guidance on home improvements that are wise investments versus those to avoid in your local market.
Davin is a jack-of-all-trades but has professional training and experience in various home and garden subjects. He leans on other experts when needed and edits and fact-checks all articles.