5 Home Improvements That Aren’t Worth the Money

When it comes to home improvement, the list of potential projects can be daunting — especially for homeowners looking to sell in the near future. Buyers may appreciate upgrades you make, but chances are they won’t be willing to pay more for them.

Before you embark on any of the following projects, weigh what makes sense for you as a current owner against your timeline for selling the home.

And of course, if you have your heart set on one of these home improvements, go for it — not everything is about money.

Major kitchen remodel

It can be tempting to entirely retrofit your kitchen in hopes of garnering a higher selling price. However, a major kitchen remodel is expensive — the national average is nearly $60,000.

More importantly, according to “Zillow Talk,” a kitchen remodel only yields around a $0.50 return for every $1 spent, which is one of the lowest numbers on this list for such a high financial output.

If you’re planning on selling in the next couple of years, you may want to leave the full-scale remodel to the new owners.

Minor kitchen updates, on the other hand, can be worth your time and money. Remodel the aspects of your kitchen that you use the most, and skip the extras.

Swimming pools

Pools seem like a sure bet for increasing the value of your home, but the truth is they aren’t always worth the investment when it comes to selling.

Swimming pools are very expensive to install — about $30,000 at the bottom end — and only recoup about $10,000 to $20,000 in home value.

Take climate into account too: A pool in the year-round warm weather of Florida is worth more than a few months of bliss in Indiana. Some home buyers also see pools as a liability — a major expense they may or may not be willing to take on.

If a swimming pool is your ultimate dream, and if this kind of renovation fits in your budget (and works for your climate!), the relaxation a pool provides might help you drift away from any money concerns.

Finished basements

Finished basements can be a gamble. If you’re planning on living in your house for a while, then it could be a practical addition to your living space. As an added bonus, buyers love them.

Unfortunately, they aren’t always willing to pay for them. If you can DIY a finished basement, chances are you may recoup a good portion of your money.

But a full-scale contractor renovation could take more time and money than you can recoup when you sell the home. “Zillow Talk” estimates that a basement renovation returns only $0.48 per every $1 spent.

Buyers also love the mere potential of a finished basement in their future, so if you don’t think you’ll be needing the extra space soon, keep the basement unfinished and advertise the potential when you sell.

Additions

A space for the kids, a house for the in-laws, more room for your hobbies — there are many reasons homeowners consider an addition.

Beware, though: If you’re looking for a big return, additions to the footprint of the house are almost never worth it, even for small houses.

A bathroom addition has the lowest return on the list at just 56 percent, according to data from Remodeling magazine. Deck additions have a higher return, between 64-75 percent, and family room additions hold a 68 percent return. Master suite addition returns 64 percent, and a full second-story addition offers a return of 69 percent.

These projects all cost thousands of dollars, so make sure you want an addition, and don’t necessarily count on seeing a return.

Backup power generator

A backup power generator may seem like a no-brainer for adding value to your home, but that isn’t the case. While potential buyers will likely be impressed, your $12,000 investment will only yield a 59 percent return.

Unless you live in an area where these are plentiful and necessary, it might be better to invest in the more basic structures of the house, which are what buyers are willing to pay for.

Of course, if you have a home business, a chronic medical condition or simply just can’t be without power, a backup power generator may be worth it for your own peace of mind.

Home improvement costs vary widely across the country, as do real estate markets. If you plan on selling in the next few years, track the features that are selling in your neighborhood to get a sense of the best renovations for your home.

If you plan on staying in your home for a long time, consider projects that you’re confident you’ll enjoy, regardless of how they’ll affect your home’s sale price down the road.

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