8 Home Upgrades That Aren't Worth Your Money
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- Опубліковано 27 сер 2024
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1. Removing rooms 1:37
2. Murals and wallpaper 2:05
3. Not so great DIY projects 3:33
4. Converting garage to gym 3:47
5. Wall to wall carpeting 4:04
6. An upscale deck 4:20
7. Solar panels 4:44
8. Fireplace mantels 4:58
I'm on my second house and lived in my first house for 10 years and had redone pretty much everything in it--bathrooms, kitchen, floors, landscaping, added a wood deck built myself, new roof, new windows--and had 5 offers in 24 hours and sold it for $60k more than I bought it for in 2010. That said I've been in my new house for 3 years and kept getting hung up on "adding value" when my friend pointed out I should just do whatever I want because the next person will probably come in and do whatever they want to fit their taste and lifestyle. It's all about location and property in my opinion. Otherwise, it's just personal opinion.
with all the renovations, did you make some money on the sale or just break even?
We sold a house with solar panels. All the potential buyers were excited about solar that was paid off. Now if the panels mean there’s a lien on the house buyers avoid it like the plague!
Going to guess most are making payments on solar...will be for awhile
I bought a house with brand new paid off solar panels and I love them!
Truth! We fell out of escrow a couple times because of our solar not being paid off.
@@markg999 yes, we financed our but paid it off with Covid stimulus. Ever grateful we did!!!
My solar panels are paid in full.
The moral of the story is if you do upgrades, do it for yourself.
Yes! We do as much as we can by watching diy youtube channels.
and no point in doing anything crazy before selling other than making sure essentials are working, people want to make it their own anyway
The only one i disagree with is the deck. If it adds large outdoor living space it's definitely worth the money at least I'm opinion. It's something many people in my area focus on.
At current prices, you will have fewer potential customers who can afford the higher price... many will choose the less expensive deckless house. its not the time for extras.
@@Goldzwiebel I guess it depends where you live. In my area there are no houses without a deck. I'm rural and people move here to spend time outdoors. A deck is mandatory.
It really depends because if the deck makes the price higher, then it may go over many people's budget and you may not get the money for it. You got to remember that what you want is not what everyone else wants. Just cause someone loves having a swimming pool does not mean that everyone wants one. I personally would not buy a house with a swimming pool because I hate pools. They take up too much space, not to mention the cost of keeping one up all the time. There are just some things that you have to think about before building something because not everyone wants what you want. That's something I'm doing right now. There are a lot of things that I would like to do to my home. But I have to make sure that I know that I may not get the money back from it. As long as you are ok with that, then do what you want for yourself. But don't always think that you'll make your money back or not lose money because of the deck. Not everyone likes to sit outside. For me, I'd love a big deck, but not everyone does and you have to realize that BEFORE building one.
Pretty confident that a garage is way way more valuable than a home gym. A garage saves loads of money on cars.
Yeah, a friend that I work with one time visited my house and he kind of laughed cause he was surprised that my car was in my garage. I guess most people have so much junk in their garages that they can't fit their car in there, or they have turned their garage into a gym or some other room. I guess I'm in the minority of actually using my garage for the purpose of my car. LOL
If you've turned your garage into a gym then you've likely invested hundreds or thousands into the equipment. It isn't as if you would leave it for the next person. You'd take it to your next house, or sell it if you're moving somewhere it isn't feasible to have it. Not a good tip imo
@@dyj321 i had 2 similar vehicles. 1 parked into a garage, the other left outside. The one outside had massive rust fairly quickly.
I park two cars in the garage and have a weight rack in the back. I have to pull one car out to workout though. I spent a little over $1,200 in used gym equipment. I also borrowed some weights and a bench from my friend who had extra equipment. During Covid I installed a 65” LG OLED and a 7.2 surround system. I use a leaf blower, vacuum and mop to keep the garage clean. I clean the floors daily. It is fully finished and looks like a usable room. I could not have a house without a garage.
If the upgrades give you pride or enjoyment, go for it and pay for it in cash.
I am in the unique position of being in this industry for 23 years and compile statistics for my state. This includes the stats for List to Sale Price ratios. Everything but the solar is absolutely true. I can tell you for a fact that homes in the Midwest sell for higher overall price, as well as net a larger list to sale price, if it has a ‘paid for’ solar system installed. Now, if you have the system leased or on a payback plan, it’s not as significant, but does help a little. The home I bought 4 years ago had one and it was fully paid for and became a massive selling point for me. Knowing that you get to move in and only have to pay for the electric grid connection fees($10.65 a month year round) is a HUGE selling point. In addition to having a power backup system, which keeps you going during blackouts, you sell the extra back into the grid and makes your bill drop to 0 + connection fee.
I got lucky... since I have started upgrading my home and yards, it pushed my neighbors to also put in work and the neighborhood is starting to scale up. Sometimes it turns out that all a neighborhood needs is someone who sparks the interest. Homes in my are are now selling $30-60k of what they were selling even during the 2020-22 craziness.
The overspend on upgrades also applies to new builds - so easy to overspend in those showrooms! 🥴
I feel attacked 😂
Another factor to consider is how long you will enjoy the home improvement yourself. If you improve your home so you can enjoy it for ten years, it might be worth it. 'My' eighty-foot large boulder retaining wall was worth every penny because we were able to enjoy our yard more for several years. So much nicer than a block retaining wall. Return on investment? No idea.
My father came up with an ingenious selling perk with the deck on his prior home in NY (which they enjoyed for years before they decided to sell.) First, it was designed for free by my sister, a U-Cinci DAP- architecture program graduate, and constructed from high end composits. Even better though, it was built 'free standing,' an eighth on an inch from the house, but unattached. When the house was assessed for tax purposes, the unattached deck counted as a free standing structure, most closely resembling a 'shed.' In Upstate NY, that meant a LOT of tax revenue saved, and was a huge selling point. Only my father would be that clever.
Updates without overpricing your house. That's so true!
Solar panels will definitely pay for themselves in some states. It also is a bonus to say the house has "free electricity". Just depends what part of the country you are in.
The number 1 for me is don't rip out older kitchens, bathrooms, flooring, etc., UNLESS:
1) they're in terrible condition, and
2) you replace them with quality materials that match the home's era.
"They don't make 'em like they used to" is so true, and there are many of us who want that 50-100yo home with all the original parts we can get. Please stop gutting these beautiful old homes! There are many of us who will bring them back to life.
* and for the love of God, STOP PAINTING EVERYTHING CHALK WHITE AND GREY.
I agree, except in our case or similar cases where the bathroom floor and original floor is asbestos containing AND friable.
I 100% completely agree. The house has to match exterior and interior or it would be one confused house. A lot of folks are into remodeling when people should focus on restoring. Timeless over trends!
…and stop putting vinyl plank floors in, they are gross. Don’t you just feel embarrassed for sellers when they’ve put them in a lovely older home?
Sorry but I have to gut my kitchen
I think these apply to highly populated areas. Comparables for rural homes can be taken from towns 30 miles away. So in this way we set the homes value and they search for homes that actually compare.
I agree totally! So much depends on geographic area, and the number of home on the market (which right now is super low.)
Hi!
I worked for an appraiser who did rurals. We would much rather travel back in time to get comps than travel 30 miles. Rural areas can vary wildly based on community, available jobs, proximity to industrial farms, etc.
I think in most cases it would be inappropriate to compare homes that far apart
@@bricemckeel255 Well no one is traveling anywhere other than to the residence in question. Comps for recently sold properties can be accessed online ofcourse. In the case of legitimate rural locations driving 30 min is nothing. It takes that long to get to any town with a population above 1k.
I’m not saying you’re wrong, but I’ve ALWAYS heard the exact opposite about decks. And that they are one of the best things to add to your home if you really want one for yourself because when you go to sell your home they usually recoup most of the money you put into it. At least more than most other home investments. I’ve heard this is true because people will see it as extra living space despite it being outside. That it makes the buyer think they have a lot more square footage than they have inside that can actually be counted. I don’t know. That’s what I’ve always heard is that it is actually a really good investment to a home if you already want one for yourself while you’re living there because they will recoup their value when you go to sell down the line.
I hopefully have 30-35+ years left in my home (I'm still in my childhood home) before I go to sell it, but this is good advice for the future. Thanks Rachel.
Here in the country there’s always the fact of space /acres they quit making dirt a long time ago. Lol.
Having the most expensive house in a neighborhood is only a bad idea if you have a short resale window and ROI is your major concern. But if you are looking for a house for the long term, renovating a house in an older neighborhood may be a better value from a lifestyle standpoint and as others have commented may spur others to upgrade their homes.
I am renovating a 200k single story ranch that was built in 1951 that has three additions and is over 2400 SF. I am 73 years old and will be putting over 100k in renovations with an eye on being able to age in place. The house is on a double lot and has a 100 year old maple tree in the back yard along with other mature trees including redbud, willow, hawthorne, walnut and mulberry. It is within walking distance to all of the public schools, a health clinic, four churches and several parks. The local supermarket has online ordering and delivers. I will have the same amount invested in this house as I would for a comparable new build. But the new build would be in a converted corn field and I don't have time to wait for a sapling to grow into a shade tree.
A swimming pool is a major hindrance too.
Depends on where you live. If you live in an area where every home has a pool and your home does not it may really affect the value. In Thousand Oaks, CA. if you do not have a pool it can ding you anywhere from $15,000-$55,000 depending on the type of home. -Speaking as an appraiser.
@@livinginventuracounty1071 many folks don’t want to maintain them. I’d personally never entertain owning one.
Having the nicest house on the block is great for resale value - just not yours. Your neighbors will love your new high water mark 😁👍
I'm in a worse situation.. we bought a undeveloped lot in a subdivision that has been around 57 years. Most of those homes were built in the $100K - $150K price range. Even building the cheapest home we can.. it is still going to be upwards of $400K! So, it's not just remodels that can lose value.. so can a new home in an older subdivision!
I built a $315k house in a $200k neighborhood, then 10 other people built in the $350-400k.
they’re probably already selling for more and new owners will catch up to you if you stick around longer term
OMG! Great topic! I need to hear this - I have a hard time prioritizing house projects and what needs to be updated next.
I tured my garage into a family room years ago, the kids loved it
people noticing craftsmanship , my sides went to orbit. All people care about is it looking good, tell them you fixed the sump system so they never got to worry about it again, or replaced the insulation so their maintaince bill wont be high.
In my neighborhood all the houses that have had major upgrades have sold for one hundred thousand over those that haven’t.
Get the basics done first such as Electrical, Plumbing and heating, then worry about the other upgrades later
Unfortunately, many homeowners and potential buyers don't see the benefit of upgrading the electrical and plumbing because they can't see it. All they care about is whether the lights come on and the toilet flushes. But I agree with updating the furnace and sometimes the water heater because can be seen.
On swimming pools, I’d say that was true prior to 2020, but we just went through the process of selling and buying in north Houston, and pools, especially new ones, are actually pushing values up. My neighbors’ home, which has less square footage, sold for about $30k higher than ours because of the pool. It’s definitely happening here
here in NJ, with this real estate market, I could sell a house falling down for top dollar ... upgrades on homes here for the sake of increasing the value of your home is senseless ... a house that has everything up to date will sell for the same price as the one that hasn't made any improvements ... just the nature of the real estate market right now. In a buyer's market then you'll need to some upgrades.
I live in Florida. Pools add value to your property here. Not great advice
I also live in FL and I know plenty of people who sold houses to get out from under pools or won’t buy a house if it has a pool. Pools are a huge maintenance item and also increase HO insurance even more than it already is in FL. Having a lot that can accommodate a pool might be a selling point but having a pool already is not.
What i love about her show is that she shows u how to apply the frugality of bwing a good steward of what Gods given us after becoming debt free on a daily basis. This is really great for those of us who wanna safe as much as we can, but realize we must get groceries& skincare, or - know we must maintain our homes & want the beat value out of it. Sure saves us from making renovation mistakes!
- not that- anyone in HI would want a fireplace, but decks& pools for sure
Just basic updates. I agree with "Art or murals" waste $$. Buyers will do their own thing.
Perfect timing!! My husband and I have so many home projects in mind and we weren't sure if they're worth the money or not
Projects can still be worth it if it increases your enjoyment of the space. While it is great to be mindful of resale, making the house work for you and your family in the present is important. Life can change quickly, and the 7 years you wanted to stay home could turn 10-15.
@@ahastar1141
I agree, especially if it is your forever home. Not everything is about resale value.
Sorry I live in a desert community where homes without pools sell for so much less
I'm in Vegas and pools are very desirable.
she did say it for most. if you live in a higher end area, what she says may not matter. for example, where i am, the smallest homes go for around 1.5+ million. (while their appraisals are around a million or a bit less). some homes go for 2.5+.
I live in the midwest and pools just bring down home values
There are almost no houses in our whole town like ours. It posed a problem getting the appraisal when we bought it. There was one comp. I’m going to guess it’s going to be a problem when we sell as well.
I don’t have to upgrade my home to increase its value. Property tax people are all to eager to do it for me.
😂😂😂
Sorry, but owned solar panels in California are definitely a value adder. Especially now that net metering agreements have been modified in favor of the utility suppliers, a grandfathered/owned solar system is worth its weight in gold given 25+ year lifespans and electricity rates continuing to go up with no end in sight.
Don't forget solar panels contracts come with the house. So you might be paying more for a house with solar panels.
Most people don’t think of resale when doing home improvements. They buy the improvements for their enjoyment.
I don't see how having a gym would affect anyone from buying a house. It's not like a gym requires any special modifications. You literally put down some horse stall mats and place equipment on top of it. When I move I take it all with me. I'm certainly not leaving thousands of dollars of equipment behind. Most garages I see are full of peoples garbage. My gym is clean and organized. I think that presents a much better look than piles of junk stacked up to prospective buyers.
I think she means converting it into a room. Replace the garage doors with drywall and putting in a new floor etc.
I have a home gym at the back of my garage but I need to pull one car out to be able to use it.
@@mocheen4837 I park my cars in the driveway. I only have a small space in the middle of my garage where I nose the cars in to change the oil. The rest of my garage is full of gym equipment. It's probably a good thing I don't have more room, or else I'd buy more equipment 😆.
7 a local appraiser does give value and Zillow real estate software did hard data it improves the value 4% on average. Dave endorses solar companies in many markets.
As an appraiser and real estate agent who has worked in 2 different states, I can honestly say that it depends. If the solar panels are leased then the appraiser is not allowed to give it value. Also, homes with leased solar tend to stay on the market longer and sell for less because the buyer has to also qualify for the lease as well as the home. As for owned solar, I have seen the contributory value for owned solar range from $0-$35,000. In our current market, we are starting to see a lot of Tesla batteries also. While these cost a pretty penny there are not enough homes that have sold to tell an appraiser how the market values them yet. These would be seen as an over-improvement right now. However, down the road, they may give tons of value. An appraiser can only given contributory value if they have the data to support it.
So I renovated the hallway bath - took out the old tub and installed a shower (safer for my elderly parents who I moved in with me). But now, I don't have any bathtubs in the house, all 3 are showers. My cousin says that'll decrease the value/make it harder to sell in the future. Is this true?
From a person standpoint, yes. If your house is in a "starter home" price range, people who are starting a family think about having a bathtub for the kids. The lack of a tub iterally made us walk away from a home when we were first house hunting and had our first child.
No bath tub means there’s no way to bath children. Typically under age 10 children only take baths.
Id need at least 1 bath tub in the house..
It depends on many things… if the buyers love rest of the house, meaning location, schools, overall state of the house luck of bathtub should not be a big issue…
This list only matters for people selling their house and have caveats. I also don't get how some are issues either. A garage gym is usually nothing permanent. Solar is fine assuming you didn't lease the panels etc.
Definitely not a video for HCOL areas - the outdoor area of the house next door to us is what drove it to sell for 250k over asking last week.
The value is in the eye of the beholder or in this case the owner or the buyer. As a buyer if it meets their needs they will pay more for that need. Appraisers are just another layer in the GAME and their guidelines are formed by the industry they serve. Value is and will always be in the eye of the beholder and the property is only worth what someone will pay for it no matter who is injected into the GAME.
There are a lot of things I'd like to do to my house. Fortunately, nothing too crazy. But before I do too much on something, I have to ask myself if I plan on staying here a long time or if I'm only going to be here another 5 years or so. Obviously, if you want an in ground pool, an Italian design kitchen, or knocking down walls, those can all be expensive projects that may actually hurt the price of your home instead of helping it. But if you are planning on staying in your home for the next 20 years, then knock yourself out and do what you like. This video came at a great time. I've been trying to figure out what I can do that I would love without actually over pricing my house or even worse, making it impossible to sell cause I'm the only one in the city that likes a certain design. Love this video. Everything you said on it is so true. Don't price yourself out of the neighborhood cause you'll lose money on the house instead of making money on the house.
I wonder how people can afford all of these upgrades. My friend upgrades his house every 10 years and spends $100,000 each time.
We want to get out of our home in the next 5 years
Something about insurance
If you're upgrading to sell it, only do the basics. Especially if you're paying someone else to do the work. If you're doing the work yourself, do the things you like and the things that will make tou happy while living there.
Every upgrade: “Listen, I’m all for this upgrade, and it’s cool, but not if you’re going to sell.”
That’s weird- I’ve read several articles stating a deck does in fact add a lot of value to your home
In CA, without solar panels you would never be able to afford electricity.
Ugh there is nothing efficient about a solar panel lol. Efficient would imply that the panels are low cost to make but produce the highest amount of energy compared to other sources.
Home gyms aren't permanent. Idk anyone who sells their home gym with the house
The first no no was my house. The previous owner knocked a wall down to have a very large, but awkward bedroom. I had to put it back up.
Really nice!
Lost me at insurance
I bought probably the worst house and have made it a great house...i think anyway...i possibly have over done it with an extension but im not planning on moving
nice!
Spending a tone of money on upgrades for a house one is selling is beyond pointless because at the end of the day, when people buy a house, they imagine the house being done up in THEIR personal taste, and no one buying a house is going to stick with whatever the house comes with just because it's new. A new floor that does nothing for the new owners is NOT going to stay there, for instance. New carpeting is a no-go because someone with allergies can not live in a house with carpeting no matter how nice or new it is. A new WHITE kitchen would not work for everyone, and a new buyer is just going to gut the place to really make it their own. I'm looking to buy right now, and I scrutinize every house and how much it's going to cost me to make it mine with massive re-modelization, so no amount of "this or that is newly installed" is going to sell me if it's going to cost me too much to replace.
Negative because most was an ad for term life. Nothing new I. The video
I agree with everything you said! Nice job
I hate wallpaper
Wallpaper is from the devil. Period.
In addendum to my previous comment...
There are few ways to declare your hatred of someone which are more aggressive and dark, than wallpapering your house, and selling it to them. If you know, you know.
Totally terrible advice, couldn’t be further from the truth. Solar increases not opposite
Solar panels? Really? They sure will and are very desirable…
Not exactly, if they come with a payment then no. Electricity is not that expensive. In kansas my water bill is much much more expensive than electricity. My last water bill was $188 for the month of april. No I dont own any water feature or pool. In july when the yard needs water to stay brown it jumps to near $500/mo in july and august. Even my winter water bills start at $75/mo. People here have started to not even open their pools because of the $1000 water bills that go with them
@@thedude5040 well, in California, for example, electricity bills easily run up to $500-800 a month. So, solar panels totally worth it.
@@damirjon85 my electric averages about $120/mo, but in the summer can creep to 190-$210 and thats because I keep the AC set to 73 deg all day every day irregardless if its 115 outside or if Im not home.
@@damirjon85 ive had solar sales people tun me down because my electric bill is too low, even though I have 3 refridgerators/freezers, lots of always on computers, and always on hepa air purifiers. I also drive my wife into insanity because I rarely turn off lights even though Ive tried explaining to her its essentially free to leave the lights on. My parents even have cheaper electric bills, thanks the coal plant and abundance of wind energy they are paying like $0.06/kwhr
@@damirjon85 I live in Burbank. My electric bill is close to $400.00 only 2 months out of the year. A solar company came to our door to sell us one and decided it wouldn't be worth it for us to get solar after looking at our bills and we have two houses on our lot.
Don't refer to money as "the bag".... its cringy as can be.