These 4 Home Renos Are a Waste of Money

Do you flip through House & Home magazine and make grand plans for your own home? Do you want to update your home so you can update the price when you sell? While this can be a great way to increase the value of your home, you want to make sure you’re getting the best return on your investment. Here are four renovations to sidestep if you want to save money:

Upscale Master Suite Addition

I’m not talking about a fresh coat of paint and some new carpet; this would be like dropping a 600 square foot high-end hotel suite into your home. This would be an addition - complete with kitchenette, fireplace, sitting room and spa-quality bathroom. Any time you are adding on to the foundation with a home addition, it will cost big bucks. These things usually return about 56% on investment if you go top of the line.

Go for a stylish update instead. Pay attention to the bathroom and closets when you are thinking about remodeling, buyers like big, roomy closets and double sinks and vanities and nice showers.

High End Garage Addition

This would be the kind of addition you could move into with your family. It’s a large two-car detached insulated garage complete with climate control. It would be completely finished with drywall, paint, and molding around the doors and window. There would be a dazzling array of organized shelving, cupboards and work benches for projects and storage. These additions only return about 58 percent on your original investment.

Alternatively, a more modest garage that was built by a professional but unfinished inside and fluorescent lighting will yield a better return at 69% at resale. People love garages and storage options so this could be a good bet.

Luxurious Bathroom Addition

This kind of add-on spares no expense with a designer glass shower with body-spray features, a stand-alone tub with jet spray, marble double vanities and a separate water closet with door and fan. These kinds of upgrades can cost in upwards of $70,000 and return 61% on investment.

Instead, try utilizing the space already available in your home and add some extra value by putting a master bathroom on the main floor. While this might seem counter-intuitive, adding a master bathroom on the main floor could add a unique feature that will appeal to buyers.

Sunroom Addition

These might sound like a wonderful idea – an oasis of peace and serenity with your very own sunroom. While it sounds like it will be a selling feature, adding a 200 square foot room onto your home complete with skylights, energy efficient windows, and remote control shades will cost you a fortune.

Resale value on something like this will vary by region but your return will very rarely return what you’ve invested into this project.

A few final points about remodeling your home: always make sure you have the proper permits to get the work done and ensure that you have umbrella home insurance to protect you and your assets. Compare home insurance rates if you need to update your coverage.

Now that you’re armed with your newfound knowledge about renos, make sure you compare mortgage rates so you can be confident that you’ve found the best refinancing rates.

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