For most of us, a home is one of the biggest investment we’ll ever make, isn’t it – yet most of the people are clueless about their home’s value, counting the things that can ruin it. Yes, from expensive yet unattractive renovations to extravagant fittings and fixtures, there are numerous home features that can devalue your greatest investment.
Let’s face it, when it comes to real estate, impression does matter; in fact, it’s more than it was ever before. But, there’s are rule of thumb when it comes to planning your investments – “You Should Aim For A Three-For-One Rule”. Basically, aim to add three dollars back from every dollar spent.
So, if you want to more return on investments from your property, you should be knowing where not to spend your money. We’ve rounded up 5 threats that could dampen your home’s value.
5 Home Features That Add Very Less Value To A Property
1. No Landscaping Or Extravagant Landscaping
A study by the University of Michigan found that consumers value a landscaped home 11.3 percent higher than the same home without good landscaping. Owing to this homeowners invest hugely in landscaping, but most of the times they are clueless on exactly which improvements pay off.
Finding the right balance is the mantra when it comes to landscaping. Note, no landscaping is a big turn off, just as much as a highly manicured one. Keep it simple, a simple lawn, easy to maintain and design; don’t overboard it with cladding, hidden gardens, and water features.
2. Extravagant Fittings And Fixtures
Disagreements over profligate fixtures and fittings during a property transaction are very common. These days we can see we have seen all sorts of high-end products being introduced to try to win points. Fancy fittings and fixtures do add to the allure of a home but a buying decision is not based on them.
Basically, the things that look fancy to you might not be the style your buyers might be looking for. Bottom line, fixtures and fittings will not give you a good ROI if you spend big bucks on them.
3. The Practically Invisibles
Things you cannot see are very unlikely to boost your returns, isn’t it? Ceiling insulation, double glazing, new air-con systems and stumps are few examples, these are great additions for your long-term home, but if you are planning to sell they might not add to your resale value.
The idea should be not mark them as a selling feature, as such systems are expected to be well-maintained and in working order by house-buyers. Also, buyers are perfectly ok even if such home features are absent. Changes to a heating, ventilation and air conditioning — or HVAC — system cannot be seen and are considered basic equipment unless additions include exceptional improvements such as green technology or heat pumps that introduce potential savings.
5. Swimming Pools
A home with a pool is a dream-come-true, but how much does it cost and will you regret it? Swimming pools might sound like a great idea at the time, specifically if you have just come back from a fun outing where there was a pool, but this truly can be a costly addition.
Data reveals swimming pools were the home feature that tended to add the least value to a property’s eventual sales price. Splashing out on a pool also cost the average homeowner nearly double of what it cost to install an outdoor deck. Also, in many cases, people have spent thousands of dollars on constructing indoor pools and haven’t been able to recover the outlay when they plan to sell.
5. Wall-To-Wall Carpeting
While real estate listings may still brag “new carpeting throughout” as a selling feature, potential home buyers may flinch at the idea of having wall-to-wall carpeting. When it comes to purchase and installation, carpeting is damn expensive, also there is a growing concern over the healthfulness of carpeting mainly due to the amount of chemicals used in its processing and the potential for allergens.
Adding to that is the probability that the carpet style and colour that you like might not be perfect for some else.
The Bottom Line
It is quite difficult to imagine that after spending thousands of rupees on a home-improvement project it doesn’t pay back in the home’s value when it’s time to sell. There is no perfect formula to determine which projects will reap the highest return or the most bang for your buck. Few of it also depends on the local market and even the age and style of the house.
Homeowners need to make smart choices between improvement that they would really love to have and the ones which would prove to be a better investment.
Curated by editor at Wienerberger India