Four better options for home improvement
It鈥檚 nice to live in a home that鈥檚 designed just the way you like, even if you have to spend money on remodeling. But when it comes to increasing a home鈥檚 value, some pricey home improvements won鈥檛 come close to matching the amount of money you put in.
If you don鈥檛 plan on moving in the near future, recouping money may not be as important as knowing you鈥檒l enjoy the remodeled space. But if your plan is to increase the value of your home, you may want to avoid聽projects that don鈥檛 offer a good return.
Here are four home improvements that usually don鈥檛 recoup costs, along with alternatives that offer a better bargain.
1. Bathroom remodel
Add up the cost of a new tub, sink, toilet, tile and labor, and it鈥檚 easy to see how a major bathroom remodel can run close to $18,000, as reported by Remodeling magazine.
The finished product may resemble a luxury spa, but homeowners shouldn鈥檛 expect the value of their homes to increase by the full amount they spent on the聽upgrade. Homeowners typically recoup less than 66% in terms of increased value, according to the most recent Cost vs. Value Report from the magazine.
Better bargain: Instead of overhauling the entire bathroom, focus on smaller but highly visible upgrades, such as new sink fixtures and showerheads. Even if you don鈥檛 recoup 100% of the money you spend, at least you won鈥檛 be out thousands of dollars.
2. Room addition
Building an extra room can set you back anywhere from $40,000 (to add a new bathroom) to more than聽$115,000 (for a master suite). You鈥檒l gain square footage, but you probably won鈥檛 gain as much value when it comes to the selling price,聽especially if your home鈥檚 size before the addition was in line with other houses in your neighborhood. Most room additions recoup around 65% of their cost in terms of added home value, according to the report.
Better bargain: Hire an architect or interior designer to find ways to maximize your existing space. For example, you may be able to knock down some walls or eliminate a closet to get more usable space. These alternatives are usually much less costly than a room addition.
If those solutions don鈥檛 work and your family needs more space, it may be a good idea to and find a bigger one.
3. Major kitchen upgrade
A major kitchen remodel can include new appliances, flooring, custom lighting, countertops and an island. But聽the kind of features you see in dream home magazines聽are expensive. The average major kitchen remodel costs close to $60,000, and homeowners usually recoup only about 65% of that in added home value.
Better bargain: Consider a minor kitchen remodel. Instead of replacing entire cabinets, you could change the cabinet fronts and hardware. And instead of replacing countertops and appliances, you could add聽a fresh coat of paint on the walls for a new look.
A minor kitchen remodel is one of the 聽to recoup your money. The cost is usually less than half that of a major upgrade, but it returns about 83% of the value on average.
4. In-ground swimming pool
The cost to build an in-ground pool can top $20,000, though the price can go much higher if you want options such as heating, a concrete lining and an attached hot tub. Pools also require a lot of upkeep: cleaning, adding chemicals, changing filters and installing a聽cover in the off-season. So even after you pay off the installation, you鈥檒l still spend time and money to maintain it.
The value a pool adds to a house varies widely by region, often running higher in warmer areas where people can enjoy pools year-round. But if there aren鈥檛 a lot of homes on your street with in-ground pools, don鈥檛 expect your home鈥檚 worth to skyrocket after you install one.
In some places, homeowners could recoup as little as 30% of the cost of installation. Some buyers may even see a pool as a negative, because聽it requires so much work to maintain and could be a safety issue.
Better bargain: If you want a water feature in your backyard, consider installing a small pond instead of a pool. An eco-friendly pond may blend better with its natural surroundings and require less upkeep. The typical price to install a small pond is $3,000, so it鈥檚 much less costly than a pool.
Completing certain remodeling projects can make your home look great, but you may not get your money鈥檚 worth when it comes to overall home value. To get the most value, consider skipping these four money-losing upgrades, and go for the better bargain home improvements instead.
Margarette Burnette is a staff writer at NerdWallet, a personal finance website. Email: mburnette@nerdwallet.com. Twitter: . This article first appeared in .
