Many people view home improvements primarily as a way to boost their property’s resale value, but some additions can actually reduce the home’s appeal.
The popular renovation job of turning smaller bedrooms into a walk-in closet can reduce a home’s value.
A space that may seem like a luxurious area to store clothes for the current homeowner might not be as appealing to potential buyers who prioritize the number of bedrooms.
‘In general, a walk-in closet is an appealing feature, but it shouldn’t sacrifice an extra bedroom,’ explained Tyler Forte, CEO of Felix Homes in Nashville, in an interview with the realtor website Melissa Stevenson.
Forte estimates that converting a bedroom into a closet lowers a home’s value by $7,500. That figure does not include the money put in to the project in materials and labor.
Kris Lindahl, CEO and founder of Kris Lindahl Real Estate, agreed that is is not a wise investment move.
‘Converting a bedroom into a larger master closet will likely not increase value because you lost a bedroom,’ he told the publication.
Realtors also warn against six further changes that can decrease the value of your home.
Creating a walk-in closet from a bedroom can dramatically alter a home’s sale price
1. Combining two bedrooms into a master suite
Combining two small bedrooms into a larger room – an issue that particularly effects older homes – can hit a home’s sale price.
‘Homeowners, in a misguided attempt to make an old house more “current” combine two bedrooms into a larger one or create a master suite at the expense of another bedroom,’ Greg Kurzner, president of Resideum, explains.
‘But if you turn a 4-bedroom home into a 3-bedroom home – when comparable homes have 4 bedrooms, the house might be worth less after the improvement.’
2. Irreversible customization
The process of making a house a home often involved imposing your taste on the blank canvas of a building. However, realtors have warned against doing anything that is not easy to neutralize or change back once you decide to put your home on the market.
‘Bright colored stone or tile, an all-black bathroom, or bright blue cabinets in the kitchen will appeal to very specific taste and are not easily or inexpensively undone,’ New York real estate broker Lisa K. Lippman said.
‘When a buyer feels like they will need to “undo” your improvement and “redo” it over, the improvement has backfired and has likely cost you,’ Kurzner agreed.
A home’s resale value should always be considered when renovating, experts warn
Any irreversible customizations should not be undertaken lightly, realtors advise
Tyler Forte, CEO at Felix Homes in Nashville, advises against walk-in closet renovations
3. Bold paint colors
Although paint is easier to undo than other renovation jobs, buyers can still be put off by the time and expense it would take to repaint.
‘Painting your home, either the interior or exterior, in non-neutral colors can decrease the value of your home,’ realtor Chris Fajkos, from Tahoe, California told the outlet.
‘Current interior design trends continue to suggest that buyers want and expect neutral colors, and if you go against the grain, you may end up putting off buyers who would’ve paid top dollar for your home,’ he warned.
4. Not respecting architectural features
Adding features that are out of keeping with a home’s overall architectural style can significantly damage a property’s resale price.
‘If you have a Tudor style home with diamond-paned windows, and you replace them with plain vinyl windows that don’t match the home’s style, you will decrease your home’s value,’ Georgia realtor Bill Golden argues.
‘Yes, you have new windows, but if you’ve ruined the architectural style of the home, you have not improved its value, and more than likely you have decreased its value.’
Lowering ceilings can also hit home values
Adding a swimming pool can be an expensive undertaking that may never be recouped
5. Lowering ceilings
Homeowners sometimes opt to lower a house’s ceilings to save on energy bills or to make lighting and wiring more simple.
However, buyers tend to favor high ceilings that make rooms appear larger and more airy.
‘Lowering ceilings has long been a simple solution for lighting, wiring, or to create a delineation between an entrance gallery and living space,’ says Lippman.
‘However, lowering a ceiling should be done sparingly, as it can also lower the property’s value.’
6. Building a swimming pool
Adding a pool to a home can increase its value in hotter climates such as California or Georgia.
However, in cooler areas of the country a pool can be seen as an expensive liability that turns buyers off.
‘Installing a pool can be a downside to many potential buyers, and thereby have the effect of decreasing a home’s value given the limited amount of time you can use a pool in Minnesota and the costs associated with maintenance and repair,’ Lindahl, CEO and founder of Kris Lindahl Real Estate said.
Even in warmer climates the cost of installing and maintaining a pool may never be recouped in the resale price.
‘That’s one of those home improvement projects that isn’t going to return a reasonable percentage of the cost of the improvement,’ Kurzner argued.
‘No matter how nice the pool, many people don’t want them or the maintenance and costs associated, so that can negatively affect value.’
