When buying a home, we all have a vision and a list of renovations that will make it ‘OUR HOME’. When you don’t have any immediate plans to sell off the home, this vision becomes much easier to execute. However, if you plan to use a property as an investment, making it fit completely to your own style can narrow down your buyer pool.
Since the buyer that looks at your property will also have their vision of a perfect home, they might plan to take down a number of home renovations that you undertook. This not only means that these renovations aren’t of use to them, but they will also have to spend extra money to take them down. Thus, they potentially will be willing to pay a little less than what your asking price for your residential property is.
To help you not end up in such a situation, here is a list of 10 Home Improvements that will reduce the resale value of your home.
1. DIY Projects
The pandemic didn’t just bring waves of Covid-19, it also brought about a wave of DIY Projects. While the DIY community was thriving even before the pandemic, everybody took part in it during the last two years.
This led to a lot of home renovations being done in a DIY fashion as well. Since people did not have access to outside labour and had a lot of extra time on their hands, the DIY home improvements scene flourished. Now unless you were an expert at building furniture or other home improvement projects, the finishing or the quality of a DIY home renovation will never be up to the standards of a property buyer. This is why we suggest staying away from them if you wish to have any home improvements increase the resale value of your house.
2. Hobby Rooms and Studios
Hobby rooms and studios are rooms dedicated to a hobby like fitness, painting, or watching movies. While these are constructive spaces and can be reused for other purposes by potential buyers, we would still suggest staying away from them.
Especially if you’re planning to undertake major remodelling and adding permanent fixtures to suit your hobby it would be best to keep the space much more versatile. A yoga studio with just good sunlight and a yoga mat is much more resaleable than a movie theatre with soundproofing, big recliners and a huge screen.
3. Ultra Luxury Furnishings and Finishes
This is another remodelling project that will not add any value to your property’s resale value and people fail to understand why. Simply because you have a Rs. 10,000 chandelier in your entryway, the buyer will not be willing to pay to keep it there. In fact, they might be inclined to let it be an add on during negotiations or even have you remove it and take it with you.
Thus, adding furnishings like wallpaper, tiling, or other finishes that are tagged as luxury will only deter a buyer from buying your house if they feel they’re paying a premium price for them.
4. Apocalypse Prep
The more high-end we get with property, the more prepared the property seems to sustain the residents during an apocalypse. Power backup and RO systems are a great addition to a house. However, when this apocalypse prep goes into massive underground bunkers, or large pantries to store months' worth of food, it becomes difficult to sell the property.
This is because most buyers don’t want to be prepared for the world to end. They would rather use that extra pantry space as a different room or a larger living area. Thus, keep the paranoia to a minimum or consider lowering your sale price to ensure buyers don’t feel like they’re paying for a panic room they didn’t ask for.
5. Expensive Pools and Hot Tubs
Similar to the point above, people might or might not want an expensive pool or a hot tub. Thus, paying for one might seem like an inconvenience that your buyer would rather avoid. Before adding an expensive pool to your property, ensure you’re doing it for yourself and your family as it might not add any value to the resale price of your villa in the future.
6. Too Much Customization
Making a house look exactly like your dream house can be an exciting project. No matter how far into this journey you are, be prepared for buyers to not like your dream house. It’s okay for you to make large amounts of customization on your property but do not expect a buyer to understand and love your vision enough to pay extra for it.
7. Extra Large or Extra Small Rooms
While constructing your house, you might want to have either a few too many rooms for the space you have or might be willing to compromise on the number of rooms just to have more space in each room.
The best way to go forward in such a case is to stick to the standard size of rooms. Since a potential buyer will also have a preference between the two scenarios mentioned above, it’s best to find a middle ground to open up your options for buyers.
8. Perfect Bathrooms or Kitchen
Bathrooms and kitchens are money pits. No amount of customization and renovations are ever enough. You can spend as much money as you want on remodelling your bathroom and kitchen and you’ll still end up finding a new remodelling project in a few weeks.
This is why we suggest always remembering that you’re undertaking these remodelling projects for your own quality of life in the house. A buyer will not pay extra for the super high tech kitchen or the swankiest bath and shower.
9. Renovations That Don’t Match The Locality
You might have a lot of money stored away to get renovations done to your house. Thus, you might end up adding luxury or quirky touches to your house that you love. But does the buyer pool that looks for a house in your locality also look for these touches?
An average Indian homebuyer does not look for a bathroom that houses a bathtub. They’ll be happy to have it, but if they’re in the market for an affordable house and feel like a bathtub is adding to the cost of the house and taking away space from a room due to a larger bathroom, they might walk away from the deal. Thus, ensure you’re catering to the locals and their style of living while renovating a house you wish to resell.
10. Multi-purpose Convertible Spaces
Multi-purpose convertible spaces are like living spaces that can be converted into entertainment zones or office studios cum gyms etc. While these sound like a great idea, a buyer looking at your house might not want an entertainment zone or gym at all. This means they’ll not be willing to pay you for the fact that these spaces are convertible or multi-purpose.
So, even though you may enjoy converting spaces into multifunctional zones, do not add that value to your resale price for your house.
Our advice to you at the end of the day would be to still listen to your heart. If you wish to make these renovations to your house, go ahead and do them. Just keep in mind that these won’t add any significant value to your home when you decide to sell it in the future. In an ideal world, if you find the right buyer, these renovations might add to the resale value of your house. But do not go into a property valuation with the expectation that it most certainly would.
Also read: Importance of Property Value and the Factors that Affect It