It’s no secret that updating your home can be a great way to increase its value. But not all home improvements are created equal. Some offer very little in terms of return on investment (ROI). Here are a few common home improvement projects with a low ROI.

Home Improvement Projects with a Low ROI

Some home improvement projects offer less return on investment than others, and it’s important to understand the value of an upgrade before diving in. If you’re considering renovations to your property but are concerned about recouping your costs at resale time, stick with projects that are known to boost property value. Below are three popular projects that don’t offer a great ROI.

1. Adding a Swimming Pool

If your family enjoys swimming, a pool may be an excellent addition, especially if you spend a lot on gym memberships or public pool usage. However, installing a swimming pool in the backyard will not do much for your home’s resale value. In some markets, it can hurt your chances of selling by turning away potential buyers who don’t want the hassle and expense of maintaining a pool. Homebuyers with young children might see the pool as a safety hazard instead of a positive selling point.

2. Creating a Hobby Room

Whether you enjoy playing music, constructing model trains, sewing, or collecting sports memorabilia, a room dedicated to your hobby may appeal to you. However, if you plan to sell the home, it’s essential to understand your hobby room won’t attract most buyers. Often a spare bedroom is converted, and most homebuyers shop for properties based on the number of bedrooms. A designated hobby space can actually devalue your house.

When remodeling a space, keep in mind the home will be worth more if you convert the area back into a bedroom before listing.

3. Converting a Garage Into Living Space

If you don’t need a garage and are tight on living space, it may seem like converting your garage into an extra bedroom, or family room is a no-brainer. But beware; this project tends to be costly, and DIYers often create a living space that is often not up to code (regarding insulation, wiring, heating/cooling, etc.). As such, a garage conversion doesn’t offer a great return on investment come resale time.

There is one exception here: if you live in an area with high demand for housing (San Francisco, CA, is a good example), converting the garage into living space may help you sell your home faster and for a higher price. The new owner could rent out the bonus space as short-term housing. However, this project isn’t often worth the investment if you live in other parts of the country.

Choose Carefully Before Diving Into Home Improvement Projects with a Low ROI

Improvements to your home are a great way to enjoy where you live while increasing its resale value. But not all projects offer an excellent ROI. Choose carefully before undertaking major renovations. Spending too much money on updates with little value can leave you upside down when it comes time to sell. If you’re unsure whether a particular project will boost property value in your local market, talk to a real estate agent or contractor before getting started.

Altamont Inspections provides inspection services to customers in Western North Carolina. Contact us to schedule an appointment.