Wednesday, February 12, 2014

8 Worst Home Improvements

“With many factors to consider such as cost and time, deciding what remodeling projects to undertake can be a difficult decision for homeowners,” said National Association of Realtors® President Steve Brown. “Every neighborhood is different and the desirability and resale value of a particular remodeling project varies by region and metro area. Before undertaking a remodeling project, homeowners should consult a Realtor® as they are the best resource when deciding what projects will provide the most return upon resale,” said Brown.
  1.       Home office remodel: You will only get back about half of the money you invest to create a home office when you sell your home. That's because even though more people are working out of their homes these days, not all buyers want a space dedicated exclusively to work. Such features can make it hard for a new owner to use the space as a bedroom if they wanted to. 
  2.       Sunroom addition: Homeowners who add a sunroom to their house recoup on average sellers are lucky to recoup about half of their investments. Homeowners who are willing to sink $73,000—the average cost of a sunroom addition—into their house would be better off investing in a different home improvement project.
  3.       Bathroom addition: Homeowners who build a bathroom addition recoup on average only about 60 percent of the project's cost when they sell the home, according to the report. However, homeowner's true return on this particular investment depends on how many bathrooms they already have. Homes with one less bathroom than comparable properties in the neighborhood would be better served by this project. If you are a bathroom short compared to other homes in your neighborhood, then it is going to make more sense.      
  4.     Backup power generator: Homeowners who obtain a backup power generator recoup on average only about 59 percent of the project's cost when they sell the home, according to the report. Although most homeowners don't consider a backup power generator essential, its popularity varies a great deal from one region to another. 
  5.     Garage addition: Homeowners who build a garage addition recoup on average about 62 percent of the project's cost when they sell the home, according to a report by National Association of Realtors  The limited versatility of a garage doesn't necessarily justify its high cost, which can average more than $58,000. A garage addition project is a labor intensive effort, often requiring builders to pour a slab, construct walls, and build a roof, among other things.
  6.     Master Suites unless you plan on living in your home for many years to come you will only get about 60% return on your investment.
  7.     Family Room Addition: The average cost of adding a family room can add as much as $80,000. If you really want to do add the room, do it for your family, not for the ROI.
  8.       Pools. In ground pools are costly and do not add to the home’s value. Some buyers are turned off because of the high maintenance and insurance costs.


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