A Major Renovation Doesn’t Always Increase Your Home’s Resale Value—Here's Why

If you are in the process of renovating your house before putting it on the market, you have definitely heard that renovations with the highest return on investments are in the kitchen and bathroom. And loads of buyers look to these rooms as a deal maker or breaker. 

But these renovations do not always cause your home value to skyrocket. The wrong renovations can push buyers away and serve only as a financial burden. A survey with BHG real estate agents revealed the three biggest mistakes you can make while renovating your kitchen or bathroom that will not result in a significant return on investment (ROI). 

1. Renovations Clash with the Interiors

Many people will choose to renovate their bathroom or kitchen right before they sell, draining bank accounts for a modern design with the latest amenities. While that looks good on a listing online, it will seem disjointed and out of place if it does not match the design of the rest of the house. You always want to plan how an expensive renovation will yield a room that fits right into the home. In a survey done with BHGRE, 52% of the agents say they’ve seen major kitchen or bath renovations ultimately hurt the resale value of a home based on trendy or unique design choices, color schemes, and fixtures. 

For functional spaces like kitchens and bathrooms, cosmetic changes matter, but not as much as they do for other rooms. A clean bathroom that matches the house’s interiors is likely to improve home value more than a brand-new bathroom decked out with trendy appliances and bright paint and tile colors. 

2. Unpopular and Expensive Fixtures 

Another renovation folly is to pay hefty prices for expensive fixtures in bathrooms like jacuzzis, bidets, and saunas; for kitchens, it is usually new high-end cabinets, hot water dispensers, or bar sinks. But these fixtures will not yield a much higher return on your investment because they are not a must-have for most buyers. It’s better to invest in changes that are affordable and will always improve home value, like a fresh coat of paint, fixing any broken or old fixtures and appliances, and putting in reasonably priced cabinets. 

3. Replacing a Bathtub With a Steam Shower

Some homeowners might replace their bathtubs with a shower to free up space in a bathroom or because they want a sleek look. But you might want to think about leaving that bathtub as is. Installing a steam shower as part of a bathroom renovation has a low ROI, so if your home is meant for a family to live in and your bathroom can afford the space for a bathtub, leave it.

But don't get us wrong—if you are looking to boost the value of your home by renovating, your safest bet is fixing up the kitchen and bathroom. BHGRE agents say that current home buyers show the highest interest in renovated kitchens (79%), new kitchen appliances (65%), and modern bathrooms (62%), so be sure to make educated renovation decisions that will yield a higher ROI instead of expensive cosmetic changes that will deter buyers.


Source: Aksha Mittapalli, bhg.com