Making improvements to your home might not sound like it could ever be a negative thing. But did you know that some home improvements could be detrimental to your bottom line when you sell your home? There are plenty of home renovation projects that don’t bring much of a return on investment at all. We took a look at the 2018 Cost Vs. Value report, which takes the average cost of a project and weighs it against its resale value to get the potential return on investment (ROI). This year, home improvement projects across the board took a hit, with the biggest dips in ROI falling under the “upscale” range. Let’s look at six of the worst home renovations for your money in 2018.
Having a nice entertaining space in the backyard might seem like a great, cost effective way to up the value of your home. According to the 2018 Cost vs. Value report, it’s really not. A backyard patio only nets a 47.6% return on average. If you’re going to add or update a back patio, we suggest a small scale project.
Master Suite Addition
It’s one thing to desire a large master suite for living purposes. But if you’re looking to add a master suite simply to add square footage, don’t do it. On average, a midrange master suite addition only has a resale value of 56.6% off its cost. An upscale master suite has an even lower ROI at 48.3%.
Major Kitchen Remodel
The kitchen is a huge selling point for buyers, and it’s usually the first place people start their home remodels. Before you do that complete kitchen overhaul, think about these numbers. A midrange kitchen remodel nets a 59% return, while an upscale remodel is valued at about 53.5%. A minor kitchen remodel should get you 81.1% of your investment back, so it’s better to go small. You likely won’t see enough of a return to make a major remodel worth your time and money.
Thinking of adding another bathroom to your house? If you need the space, go for it. But don’t expect to completely recoup the costs when you sell. A midrange bathroom addition will get you about a 60% return. If you don’t absolutely need the extra space, go for a remodel of an existing bath. Bathroom remodels will give you a slightly higher return at around 70%.
Okay, so sometimes there’s no getting around the need to replace a roof. If your roof is old or damaged and actually needs replacing, doing it now will save you headaches when you go to sell. But replacing a roof just because you want to upgrade won’t get you much of a return. A total midrange roof replacement has a resale value of about 68.4% of its cost.
New Fiberglass Door
If you need to replace your front entry door, wood or fiberglass aren’t your only options. A fiberglass door will give you roughly 67% back when you sell. A steel door, however, costs less and has a return of 91.3%. Steel doors are also great if security and durability top your list of concerns. They won’t ever crack or warp, and dents or dings can be easily repaired with an auto body repair kit.