Many clients are concerned about a house being a “money pit” so we have tackled the topic of what 5 things do not add value to a house. This way you can better avoid spending money on your house that really won’t help the value.
It’s incredible how often some homeowners think that they are making an investment that will increase the value of their home. There are a number of decisions that homeowners make that simply does not aid in their value. This is fine as long as they are doing it for their own purposes versus things that these cost outputs will benefit them in the long run.
5 Things You Would Think Add Value To Your Home But Really Don’t!
1. Swimming Pools
I get this question a lot! (yes, even in Toronto where there are few properties that are big enough for a backyard pool). You may be a fish or love to sun tan but that cost will not be recuperated on the eventual sale, in fact, it may lower your value! The cost to upkeep a pool can be too high for those buyers who are not absolutely attached to the idea of a pool. Also, the buyer may desire a usable backyard versus a cement pond!
2. Don’t Over Build Your Home
What I mean by this is if your average home value is 800K in your neighbourhood it wouldn’t be a wise decision to spend 600K on your home as it would likely be far and above a realistic resale expectation, i.e. it is once again unlikely that someone would pay 1.4+ million for your renovation/build.
3. Over-the-Top Landscaping
Don’t do too much to your garden to the point where it will be laborious work to the prospective buyer. Perhaps the buyer won’t take the time to keep the yard up nor wish to pay a small fortune to have the pros manage it.
4. High-end Upgrades
Just because you love your marble floors stained with 17th century Bordeaux red wine it is highly unlikely that the buyer will pay extra for this as it is really a subjective value. Upgrade your features according to the neighbourhood no matter what your love of classical France is.
5. Invisible Improvements
Okay, I know this sounds ridiculous but hear me out on this one…New plumbing, roof, HVAC (heating, ventilation and air conditioning), etc. These are expected in a house. Not having one of these will hurt the value, but no one will pay you to have kept your home up to a reasonable standard.