Many homeowners assume that any improvement will lead to a higher resale value when renovating a home. While certain updates can make a property more appealing, not all renovations provide a good return on investment.
Some improvements may even reduce the value of your home or make it harder to sell. If you’re considering a major home project or planning to sell soon, it’s important to understand which upgrades may not add value and could cost you more in the long run.
This guide will help you identify home improvements unlikely to boost your property’s worth.
Let’s get straight to the point.
Not all home improvements add value to a property; some can even decrease its appeal or resale price. Extensive landscaping, upgrading utilities, solar panels, new roofs, and luxury renovations may yield a poor investment return.
Features like swimming pools, hot tubs, quirky wallpaper, and DIY projects can turn potential buyers away. Large-scale additions, garage conversions, and room expansions that reduce bedrooms can hurt resale value.
Focus on essential repairs and neutral, timeless designs to appeal to a broader range of buyers and ensure better marketability.
Common Home Improvements That Fail To Increase Value
1. Extensive Professional Landscaping
While a beautifully landscaped garden can enhance a property’s aesthetic appeal, it doesn’t guarantee increased value. Expensive features like ponds, waterfalls, or custom-built pergolas might appeal to only some buyers.
Some buyers may view elaborate landscaping as a costly maintenance burden rather than an attractive feature. Therefore, if you’re investing in extensive landscaping, do it for your enjoyment, not profit.
2. Upgrading Utilities
Replacing outdated plumbing or upgrading your electrical system may seem like a smart move, but it typically won’t increase your home’s resale value. Most buyers expect functional utilities as a given rather than as a bonus.
Significant upgrades are unlikely to provide a good return on investment if your home’s systems function adequately.
3. Solar Panels
Installing solar panels is often promoted as a way to boost your home’s value. However, while solar panels can reduce energy bills, they do not always add significant value to the home.
Buyers may be hesitant if the panels are leased, as they won’t own them after purchasing the home. The initial installation cost may still need to be recovered in the sale price, especially as solar technology evolves.
4. New Roof
A new roof is often seen as a necessary maintenance rather than a value-adding improvement. Buyers appreciate knowing they won’t need to replace the roof anytime soon, but this doesn’t translate into a higher selling price.
While it may help your home sell faster, expect to see a small return on the investment.
5. New Windows
Replacing old windows can improve energy efficiency, but it is one of those upgrades that only sometimes yields a high return. New windows are often expensive, and while they may attract eco-conscious buyers, most will not be willing to pay significantly more for this upgrade.
If your windows are in good condition, replacing them is unlikely to boost your home’s value.
6. Updating Outdated Decor
Changing your home’s decor to reflect current trends is a quick way to make it more appealing to buyers, but be cautious. Trends change fast, and what is fashionable today may not be tomorrow. Installing trendy fixtures or flooring that may fall out of style can limit your pool of potential buyers.
Neutral, timeless decor is always a safer bet when selling a home.
Luxury Upgrades That Offer Poor Return On Investment
1. Custom Luxury Renovations
High-end, luxury renovations—such as extravagant kitchens or custom-built bathrooms—may not yield a good investment return. According to industry data, minor kitchen remodels typically have a better return (around 77%) than high-end renovations (54%).
Buyers often doubtfully appreciate the cost of luxury materials and may see these upgrades as “nice to have” rather than essential features.
2. Wine Cellars
Building a wine cellar may appeal to a niche group of buyers, but it will not significantly boost the overall value of your property. Wine cellars are expensive to build and maintain, and if the buyer is an avid wine collector, they might see the value in this feature. This addition is more of a luxury than a necessity for most homebuyers.
Home Additions That May Reduce Value
1. Large-Scale Home Additions
Adding a large extension or second storey to your home may not provide the return you expect, particularly if it makes your home much larger than others in the neighbourhood.
Buyers often look for homes that fit the size and price range of the surrounding area. A significantly larger home may seem out of place and be harder to sell.
2. Garage Conversions
Converting a garage into a living space is a good way to add square footage, but many buyers still prefer having a garage. Losing a garage can be a dealbreaker for families with multiple vehicles or those who value extra storage space.
Converting a garage could limit your home’s appeal to potential buyers, which may result in a lower selling price.
3. Renovated Basements And Attics
While finishing a basement or attic can add usable space, it does not always provide a high return on investment. The cost of these renovations can be high, and the potential resale value often needs to justify the expense.
Studies show that finished basements generally return about 70% of the investment, while attics offer an even lower return of 56%. These spaces are seen as bonuses rather than essential living areas.
Features That Might Discourage Potential Buyers
1. Swimming Pools And Hot Tubs
Swimming pools and hot tubs may look great on TV, but buyers often view them as high-maintenance and expensive to repair. Many buyers, particularly those with young children, view pools as a safety concern.
If you install a pool or hot tub, do so for your enjoyment, not because you expect it to increase the value of your property.
2. Quirky Wallpaper And Unusual Finishes
Wallpaper trends come and go, but they are highly subjective. Installing quirky wallpaper can make it harder to sell your home, as potential buyers may need to share your taste.
Most real estate agents recommend removing wallpaper before listing a home to create a more neutral, appealing space. It is often better to stick with light, neutral paint colours that appeal to a wider range of buyers.
High-Cost Appliances And DIY Projects
1. Expensive Appliances
Upgrading to high-end appliances might make your kitchen more enjoyable, but it sometimes translates into added value. When you sell the house, many buyers won’t pay extra for premium appliances, particularly older models.
Consider more cost-effective upgrades that will appeal to a broader audience.
2. DIY Home Improvements
While DIY projects can be fun and save money, they can backfire if not done well. Amateur artistry often attracts buyers and can reduce a home’s perceived value. DIY projects may be seen as “shortcuts” rather than proper improvements, raising concerns about the quality of work throughout the house.
Hiring professionals for critical renovations is usually better to ensure they are done correctly.
Conclusion
Not all home improvements are created equal, and some can have little to no impact—or even a negative impact—on your home’s value. Before embarking on a renovation project, it’s important to research which upgrades will provide the best return on investment and which are better left as personal projects for your enjoyment.
Focus on essential repairs and maintenance, such as updating old plumbing, ensuring the roof is in good condition, and keeping heating and cooling systems functional. These improvements will appeal to most buyers and help your home sell faster, even if they don’t dramatically increase its price.
When considering major upgrades or cosmetic changes, opt for neutral, timeless designs that appeal to many buyers. If you’re unsure about the value of a particular project, consult a real estate professional who can provide insights specific to your market.
FAQs About Home Improvements
What Brings Down Property Value?
Closure of facilities – public services, employment, amenities; if any of these services close, it could impact the value of your house as they’re often appealing to buyers. Low school ratings – buyers pay to live in areas with good schools because they want their children to have access to the best education.
What Causes A House To Depreciate?
A house’s value is ultimately what someone is willing to pay for it. Damage to your home caused by mold or bug infestation, fire or weather damage, sewage problems, or structural problems especially in the basement or the roof will devalue a property.
Do Kitchen Appliances Increase Home Value?
While it may be unlikely that one or two new appliances alone can increase the overall value of your home, upgrading key rooms-particularly the kitchen-can net you an excellent return on investment when you’re selling.
Does Having No Bath Devalue A House?
A bathroom is a must-have for families, whether it be for bathing the kids or when you want a moment to relax. As a result, if you are thinking about turning a bathtub into a shower, the short simple answer is no – you should avoid removing a bath at all costs to prevent devaluing your home.
Do Wall Ovens Increase Resale Value?
The biggest money-making features were steam ovens, wall ovens that pump in steam to cook food in a healthier manner. These netted a 34% sales premium, higher than any other feature. Of the 10 home features that generated the biggest boost in the home’s sales price, six were kitchen-related.
