The American dream is to own a home, but the American hustle is to sell high and make an appreciable profit. For most Americans, the average price of a new home is about $380,000. Meanwhile, one out of every four homes lose some appreciable value. Some homes lose value due to the unpredictability of the housing market. Sometimes in life we cause our own worst suffering.
Like with home renovation. Unless you are undertaking a project that adds to your home’s value, like a kitchen renovation or exterior paint job, you may want to steer clear of any overindulgent, money pit renovation projects. They may not attract buyers, may cost you more to uninstall and renovate, and may unwittingly tank your home’s value.
Removing a Bedroom
People with multiple-bedroom homes have the freedom to remove a wall, eliminate bedrooms, and make new rooms. It might only cost a few hundred per non-load bearing wall, and more for load-bearing walls. Knock down a wall or two and its relatively easy to make a new exercise room or expanded closet. However, this is just a money pit endeavor.
One day, you might need to sell this home. Ask yourself this honest question if you were a potential home buyer: would you pay more money for a two-bedroom or three-bedroom home? Adequate living space is a major selling point for all home buyers. Why decrease the value of your home for an extra closet?
Built-In Wall Aquariums
Who would have thought that a show about craftsmen who construct luxury home aquariums would be a reality-TV hit for years? But here we are. Built-in and luxury aquariums seem to be very popular with homeowners for some reason. Unless you really love fish, and the chore of maintaining over-sized and custom-built fish tanks every day, you might want to pass on this idea.
You could pay hundreds or thousands of dollars for the installation. Then, you might pay hundreds, if not more, for the daily and weekly maintenance. Now, imagine that you want to sell your home. Unless you know for sure that the potential buyer loves the idea of constant maintenance for a custom fish tank, you might have to take a loss on the asking price.
Also, consider how much money you might have to pay to uninstall a built-in aquarium, along with any aesthetic renovations, to precipitate a sale. Unless you have no plans to sell anytime soon, you shouldn’t do this.
Built-In/Hidden Electronic Devices
It might be cool to have a flatscreen TV rising out of a floorboard. Or to have various other kinds of electronics, like audio speakers, deceptively hidden in the walls or structures of your home. However, the novelty will soon wear-off. The engaging mechanisms that deploy or reveal such devices will break down and require regular, expensive maintenance.
Moreover, the hottest electronic gadgets of this morning become old news by mid-afternoon. Also, it’s a gamble to assume that a potential home buyer might be attracted to such contrivances. Additionally, you might have to pay for soundproofing to ensure that noise pollution doesn’t encroach into adjacent rooms. The removal and renovating costs may outweigh the installation costs over the long run.
Choose Renovation Projects Carefully
Did you know that painting your front door in a darker color hue might increase the value of your home by $6,200? Research what kinds of renovation projects will increase the value of your home. And, be attractive to potential buyers in the future.
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Allen Francis was an academic advisor, librarian, and college adjunct for many years with no money, no financial literacy, and no responsibility when he had money. To him, the phrase “personal finance,” contains the power that anyone has to grow their own wealth. Allen is an advocate of best personal financial practices including focusing on your needs instead of your wants, asking for help when you need it, saving and investing in your own small business.
