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Non-ImprovementsBy Jim Sulski Summary: Home improvement projects may seem like a good idea, but some renovations come with financial and real estate consequences that can make home owner's regret their non-improvement. Hot tubs in the bedroom. Tennis courts blotting out the backyard. Bidets in the bathroom. Bedrooms in the basement.
Home improvements? Or home horrors? While there's nothing particularly wrong with any of the above projects, some home improvements can go awry from both a usability and resale standpoint, say real estate experts. Hence, any improvement out of the ordinary should take some consideration. The big question with any improvement is will it be something the homeowner will use or just a trendy item?' For example, there are hobbyists out there who have sunk thousands of dollars into state-of-the-art basement workshops that begin to collect dust afterwards. There are more practical aspects to such improvements. For example, even the addition of bedroom space to a home should be carefully plotted out. What would be considered a wasteful home improvement is the conversion of an attic into a large bedroom for a teenage son, only to see that son move out for college in a year or two and then watch the space go unused. However, if you plan that space out right, you can later convert it to a master bedroom suite, and turn a downstairs bedroom into a guest room or a room for an elderly in-law who may come to live with you. Hence, real estate officials suggest designing any new space so that it gives the homeowner the greatest amount of flexibility down the road. There's also the concern about resale. With certain home improvements, you'll see a great return on your investment when it comes time to sell the home, say real estate experts. On others, you won't see that much of a return or a return at all. Real estate experts tag improvements that offer a minimal payback as "non-improvements" or "liabilities". In other words, if you spend $3,000 or $4,000 to improve your home, don't expect to be able to raise the sale price of your home by the same amount. Here are a few more examples of non-improvements that homeowners want to carefully consider before making: HOBBY HUTS: Any home improvement projects that focus on a person's hobbies - such as adding a bowling lane, shooting range or woodworking shop in the basement - should be considered a non-improvement. For example, Let's take a home where people have spent money to build large aquariums into walls, creating permanent and elaborate room dividers. A project like that will not retain any of its value for the homeowner. ENERGY CONSERVATION PROJECTS: While a new energy-efficient water heater and strong insulation values are great ways to cut energy costs and give your home a selling edge, more elaborate energy-savings systems may not be. For example, buyers may not be interested in a solar water heater or a Photovoltaic solar electricity-generating system because of the maintenance involved. Most people are not that dedicated to energy conservation. UPGRADED FIXTURES: Another common non-improvement is expensive plumbing and electrical fixtures. Will you actually use a bidet or is it a status symbol? Don't buy fancy where good will do. From a resale perspective, most buyers don't appreciate chandeliers that cost hundreds of dollars or gold-plated bathroom fixtures. About the most notorious non-improvement of our times are whirlpool tubs. They often go unused and take up lots of space in a bathroom. And they really don't make a difference in selling your home. WOOD UPGRADES can also be a risky improvement. If you install hardwood floors in a home at a cost of $2,000 to $3,000 a room, don't expect a return on that. And some buyers may have a hard time justifying the cost of expensive cherrywood kitchen cabinetry when less expensive and more traditional oak cabinets will do fine. BASEMENT IMPROVEMENTS should be carefully thought out by homeowners as they usually offer little return on their initial investment. Putting carpeting and cabinetry in basements is not a good idea as people are always worried about flooding. While every potential homebuyer appreciates a basement, not many want to pay for finished basement living space. LANDSCAPING: Homeowners should be careful not to over invest in landscaping and gardens mostly from a maintenance standpoint. That maintenance can also scare away potential buyers. Decks, although extremely popular now, can also be overbuilt. Experts recommend that 75 percent of the yard be designated to green space, and 25 percent to a deck. OUTDOOR RECREATION: In addition to pools, there are other outdoor projects that may be non-improvements, such as constructing a tennis court in your backyard. Eventually, you may get tired of playing tennis. In addition, you have to find a tennis player to buy your home. Elaborate outdoor gyms for children - including swing sets and tree forts - can also be risky home improvement investments. A potential buyer who has older children is not going to be interested in such an improvement. GARAGES: Overbuilding garages can also be a wasted investment. A four to five car garage is okay if the home has the value of a four or five car garage. Otherwise, avoid it. And tearing down a garage to create more yard space can also be a hindrance to the sale of a home. Other improvements that experts are cautious about include hot houses or greenhouses, which are believed to be high maintenance rooms. Carpeting in the kitchen is also a quirky improvement and it never looks right.
© June 10, 2005. NOTE: This column is distributed by Real Estate Matters Syndicate, PO Box 366, Glencoe, Illinois, 60022. This column may not be resold, reprinted, resyndicated or redistributed without written permission from the publisher. © 2005 by Ilyce R. Glink. Distributed by Real Estate Matters Syndicate. |
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