Many homeowners can’t resist pouring thousands of dollars into home improvement, believing it’s always an excellent investment. However, the reality is not all investments are created equal. Some may even drain your wallet without adding any value.
So, should you avoid all home upgrades? Of course not. But you’ll need to be strategic about what upgrades you make. At the very least, you need to understand the upgrades you’re making before spending any money. Here’s our list of home improvements that won’t offer a return on your investment. Hopefully, it will save you time and money along the way!
1. High-End Kitchen Renovation
Although kitchen upgrades may seem like a surefire investment, high-end kitchens are not. Why? High-end kitchens require specialized maintenance for appliances and other materials.
Minor kitchen renovations can cost $10,000–$20,000. High-end kitchen upgrades can cost $70,000–$130,000! Something else to consider is what this value will do to your home. If your home is valued higher than most homes in your neighborhood, it will be harder to sell. Unless you plan to keep your home in the long term, high-end kitchen upgrades aren’t worth the cost.
2. Luxury Bathroom Upgrades
Bathrooms are also an obvious choice to go all out with. Think again. Bathroom renovations cost $15,000–$25,000 for most homeowners. However, despite investing this much money, expect only to recoup 60%–70% of your investment when you sell.
3. Wall-to-Wall Carpeting
Wall-to-wall carpeting, usually bought in long wide rolls, tends to be more complex and challenging to install. Also, consider that you will waste 5%–15% of rolls after cutting sections to align with each room. Pricing for wall-to-wall carpeting ranges from $300–$600, depending on the scope of your project.
Wall-to-wall carpeting isn’t worth the cost unless you’re covering a large space. Instead, consider carpet tiles, small squares of carpet that you can install and often combine uniquely.
4. Built-in Electronics
Going big on adding built-in electronics around your home isn’t a smart move. These electronics include refrigerators, ovens, microwaves, wine coolers, and much more. Consider that technology is rapidly changing. Today’s technology can quickly become obsolete in a few months!
This doesn’t mean you should hold onto outdated electronics. Just be mindful when you add new ones to your home.
5. Sunroom Additions
Sunrooms add a unique section to your home so you and your family can enjoy pleasant weather on those summer days. However, they can also cost you a pretty penny, with prices ranging from $30,000–$75,000.
You should also consider the approvals required from your city. Electrical wiring, insulation, windows, and doors are additional costs that drive up the price. If the costs weren’t bad enough, sunrooms typically aren’t included in your home’s square footage.
6. Swimming Pools
Having a swimming pool in your backyard may seem like a wise investment, but think again. If you live in Maine, for example, where winters can be rough, adding a pool to your home won’t add much value.
Above-ground pools cost up to $2,000 but net the least value, if any. In-ground pools can cost up to $50,000. On average, in-ground pools net you 5%–7% of your investment. If your home is worth $400,000, expect to raise your home’s value by $28,000. You don’t have to be a mathematician to understand spending $50,000 and only increasing your home’s value by $28,000 is a bad financial move.
7. Extensive Landscaping
Installing gravel paths, plants, or exterior decor may make you feel good, but it can quickly drain your wallet if not done right. Although landscaping generally increases the value of homes, not all investments are worth the cost.
For example, ponds may look aesthetically pleasing, but they can also pose a risk to kids. Additionally, outdoor kitchens or tennis courts, which may look appealing, can drive your home’s value way past your neighbors’.
Instead, focus on simple upgrades that are easy to maintain. Landscape lighting, sprinkler systems, and mature trees are worthwhile landscape investments that generally net a return on your money.
8. Roof Upgrades Beyond Standard
Like other upgrades, consider that you’ll likely recoup up to 70% of your investment when adding a new roof to your home. Additionally, if your roof drives up your home’s value, while it may look good on paper, it will be harder to sell.
Ultimately, you may end up with an expensive roof that looks and performs well but won’t recover much of its cost.
9. Garage Conversions
If done right, garage conversions can at least break even. Converting your garage adds to your home space and removes space for your vehicles. This may not matter if you have more than one garage, but it’s something to consider. Otherwise, you may end up lowering your home’s value!
Additionally, you will require permits. Be prepared to spend $6,000–$27,000. Whether or not you’ll recoup your investment will vary, but if you don’t have additional storage for vehicles, you may be doing more harm than good.
10. Home Office Overhauls
More people now work from the comfort of their homes, so a home office upgrade seems smart, right? However, building a home office can cost thousands of dollars, depending on your taste. As with anything, whether you recoup money or not depends on how much you spend on your upgrades.
Converting a bedroom into an office may do more harm than good if your home only has two bedrooms. However, investing in an adjustable desk, computer monitors, and lighting for a spare room might be a wise move. Be careful not to go overboard with what you add to your home office.
11. Solar Panel Leasing
Although solar panels may appear like a smart move at first, it will be challenging to transfer your home if your solar contract isn’t up. Solar panel installation will also be easier in some states due to different solar policies.
When installing solar panels in your home, it is essential to understand your state’s policies, determine how much money you’ll save, and then make your move. If you unthinkingly follow the hype around solar panels, you may quickly lose money on this investment. Expect to pay upwards of $25,000 to install solar panels in your home.
12. Invisible Pet Fences
Beauty is in the eye of the beholder, right? Although electric fences can add value to your home, they are more challenging to justify. Additionally, they may not protect your furry friends from external danger.
Expect to pay a few hundred or thousand, depending on the size of your yard. If you’re absolutely sold on getting one for your pets, know that this investment will likely not increase your home’s value.