What Renos Do NOT Add Value?

If you’re planning on selling your home you want to make sure it is attractive to buyers, and ultimately sells for a great price. Therefore, there are some upgrades you may want to consider. Some sellers choose to do renovations to add value to their home. However, some renovations don’t actually add the value you want.

The definition of a Reno that does NOT add value is one that costs more up front than it will earn you later. So, while a renovation may add some value it won’t be more than you initially put into it. That means wasted time on your part, plus the disappointment of losing money on what you though would get you more! Some renos can even turn buyers away- especially renos that add features that will require ongoing maintenance.

So, potential seller, before you take on any projects read the list of...

What Renos Do NOT Add Value:

1. Removing a Bedroom to Make a Master Suite

While a master bedroom suite is a big selling feature, you should not remove another bedroom to create one (Unless it’s for yourself and you’re staying)! When selling a house the number of bedrooms will add much more value than the number of square feet in the master.

INSTEAD: Stage your current master with minimal clutter to make it look as spacious as possible. Also, clear out the closets, except for a few thought out items, to highlight the room’s storage in the best way.

2. A New Deck:

Building a deck is expensive, and isn’t the top priority of most buyers. Maybe at a cottage with a significant deck it would make sense to rebuild it if it was in rough shape, but in the city it won’t likely gain you as much value in the selling price as what you paid for it.

INSTEAD: Restain your deck. Restaining is a great way to make the deck look like new (or at least look much better) without the cost of an entire new one. If it doesn’t need paint, consider power-washing it.

3. Doing So Much That it’s Way More Expensive Than Other Homes in Your Area

While it’s the goal to make your home impressive to buyers, you have to remember the market. By doing extensive high-end renovations, or adding another storey, you run the risk of overpricing your home for the neighbourhood. If every home in the area is a bungalow, or much less expensive, yours could sit on the market for a long time.

Buyers will compare it to other homes in their price range in different areas. Or, if they’re looking for a home in your specific area, will probably choose a more affordable home they can add their own renovations to for less than it would cost them to buy your (overpriced) property.

INSTEAD: Get advice from your Realtor about what renos you could consider doing to get top dollar for your home without pricing it out of its market.

4. New windows

This one is fairly simple. It’s not that new windows aren’t appreciated by buyers- they definitely are. You should just know that the cost of replacing every window in your home is not often going to get you more money back than you put into replacing them.

INSTEAD: Replace any damaged trim around windows, repaint any peeling/yellowed trim, and clean them until they look as good as possible.

5. Basement Reno

Many sellers with unfinished basements ultimately choose not to renovate them. Buyers know basements usually aren’t the best, and even welcome a blank slate in that particular space.

INSTEAD: Clear everything out of the basement and clean it so buyers can see the size, and picture the potential for their own custom basement reno in the future.

6. Hidden Improvements

The expensive, and honestly boring, task of replacing an HVAC unit or electrical panel isn’t usually worth it. It’s best to leave them as is.

INSTEAD: Let buyers offer slightly less if their inspection reveals an older heating system. Let them replace it later. It sounds painful, but in reality it would cost more to replace it than you’ll lose in the sale price...So, it also won’t gain you more than you spent replacing it.

7. Pools and Custom Outdoor Features

There are much fewer buyers looking for pools than there are buyers who find the idea of maintaining them overwhelming. Maybe in a pool-obsessed US town adding one would be worth considering. However, in Toronto, buyers are not often looking for a pool, and may even walk away from the responsibility of owning a pool to buy a similar house without one. Same goes for basketball courts, fountains, elaborate gardens, and other very specific additions to the yard. These things are often seen as more maintenance than they’re worth to buyers.

INSTEAD: Manicure the grass/clean up the yard, add potted flowers, and stage with some nice patio furniture. Buyers who want a pool will still be able to see the space, while the majority of buyers will be happy to see a clean yard with potential for whatever they want.

8. Costly High End Fixtures

While that $3000 light fixture is a show-stopper, it isn’t going to get you $4000 back..or even what you paid for it! Don’t waste money on top of the line fixtures when selling. You can replace dated faucets, light fixtures, kitchen knobs, and other items without overspending (and losing, not gaining, money). There are many affordable fixtures that look stunning, add some value, and won’t hurt your wallet so much.

Instead, select less expensive fixtures or leave the ones that are there if they are not too dated. Put your quality taste toward picking out those extra touches for your new home instead!

Which brings us to…

9. Reno’s YOU Want - Rather than What Really Adds Value:

You always wanted your drab laundry room to have a chevron porcelain backsplash and a custom wooden folding table. That doesn’t mean it adds value. There are many little things that aggravate homeowners about their house over time, but if you’re selling you have to remember these renovations aren’t for you. Your specific ideas will look amazing in your new home, after you sell your current one!

INSTEAD: Know what actually adds value by researching and talking to your Realtor. See What Renos Add The Most Value?