When you’re getting ready to sell your home, it’s natural to want to make it look its absolute best, addressing any flaws and sprucing everything up. You want your place to shine in a competitive market, especially in popular areas like Los Angeles where new listings pop up often and bidding wars are common. But be careful: not every improvement you make will actually add value when it comes time to sell.
The data reveals a clear picture: many homeowners are investing significantly in their properties, with the average American household spending $9,322 on home improvement projects in 2024, according to Angi’s annual State of Home Spending report. Yet, this substantial investment doesn’t always guarantee a return. The key takeaway here is profoundly simple yet frequently overlooked: not every home renovation project will increase the resale value of a home. Before you commit time, effort, and finances to a new feature, a crucial question must be asked: will this project genuinely pay itself off by attracting prospective buyers and securing a better sale price?
Understanding which renovations actively deter buyers or simply fail to generate a positive return on investment is paramount. This insight can help you avoid costly mistakes, prevent unnecessary delays in your sale, and ensure that your efforts are directed towards truly value-adding improvements. Let’s explore some common home improvement projects that, surprisingly, could decrease the value of your home, starting with the first six crucial items homeowners should think twice about before tackling.
1. **Too Much Wallpaper**Wallpaper has undeniably made a significant comeback in interior design trends, offering an immediate way to inject personality and style into a room. However, what you adore in terms of pattern and color scheme might not resonate with the broad spectrum of potential buyers walking through your door. Personal aesthetic choices, especially bold ones, are inherently subjective, and betting your home’s appeal on them can be a risky strategy when selling.
The financial outlay for wallpaper installation alone can be considerable. According to home improvement information site Fixr, installing wallpaper typically costs homeowners between $800 to $1,200, with many spending around $1,000 for a standard 12-foot-by-18-foot room using vinyl wallpaper. This isn’t a small sum to begin with, but the real issue arises when you consider its recovery upon sale.
More often than not, this cost will not be recouped. Furthermore, the removal of wallpaper is notoriously time-consuming, messy, and can even damage walls if not done properly. Alex Capozzolo, co-founder of Brotherly Love Real Estate, highlights this concern, stating, “The quality deteriorates over time and most future owners of your home will want to remove it, which can be a cumbersome process.” When preparing your home for sale, a fresh, neutral coat of paint offers a far more universally appealing and cost-effective solution than personalizing with wallpaper.
2. Many homeowners are tempted by the idea of built-in electronics, envisioning a sleek home theater or a smart home system that’s seamlessly integrated. It sounds so convenient and luxurious, promising a sophisticated and immersive living experience that you’ll truly enjoy. However, these high-tech features can actually cause a lot of headaches when you decide it’s time to put your house on the market.
The biggest problem with built-in electronics is how quickly technology changes. What seems cutting-edge today can easily become outdated or even obsolete in just a few short years. That fancy upgrade you loved might end up making your home look older instead of newer, which is the opposite of what you want when you’re trying to sell.
Prospective buyers often look for flexibility and the opportunity to imprint their own style and technology preferences on a new home. Discovering a home laden with personalized, fixed electronics that may no longer meet their needs or integrate with their preferred systems can be a major turn-off. This type of customization, unfortunately, tends to decrease home value by limiting its appeal to a niche market rather than broadening it.
3. **Wall-To-Wall Carpeting**The decision to install or keep wall-to-wall carpeting, particularly over existing hardwood floors, is a common misstep for homeowners preparing to sell. While carpeting can provide warmth and sound dampening, its impact on resale value is generally negative. Alex Capozzolo offers straightforward advice: “If you have existing hardwood floors, don’t cover them with carpet. Most new homeowners prefer to remove carpets if they are of poor quality. Carpeting adds no value to a property.”
This preference for hardwood is not merely anecdotal; it is strongly supported by industry data. According to the National Association of Realtors (NAR) 2022 Remodeling Impact Report, interior home projects involving hardwood floors yield some of the highest cost recoveries. Refinishing existing hardwood floors saw an impressive 147% cost recovery, while installing new hardwood flooring recovered 118% of its cost.
These figures underscore a powerful financial incentive. If you invest $20,000 in new wood flooring, you could realistically see an additional $23,600 added to your home’s sale price, effectively turning a profit on the renovation. This significant return, however, is contingent on the specific house and the type and design of the hardwood floors chosen. Therefore, preserving or revealing existing hardwood, or investing in new, high-quality hardwood, is a far wiser strategy than installing or maintaining wall-to-wall carpeting.
4. **Swimming Pool**The dream of owning a swimming pool often conjures images of endless summer fun and a luxurious lifestyle. However, when it comes to boosting your home’s value, a swimming pool often fails to deliver a positive return, especially in regions that aren’t consistently hot for the majority of the year. For many buyers, a pool represents a significant financial and time commitment, not an added benefit.
Building an in-ground swimming pool is a major undertaking, with the average cost coming in around $65,909 according to Angi. But that’s just the start of the expense; potential buyers know that owning a pool means ongoing costs for maintenance, which can run $3,000 to $5,000 annually, and possibly higher insurance premiums due to the increased liability.
While Angi notes that a pool could increase a home’s value by anywhere from 5% to 56%, this wide range highlights the unpredictability of its return. Factors such as climate, local market demand, and the type of pool (in-ground versus above-ground, with in-ground pools typically offering a higher return) heavily influence its value proposition. Ultimately, the question arises: if you can’t swim year-round, is a pool truly worth the immense investment from a resale perspective? For many buyers, the answer is a resounding no.
5. **Garage Conversions**Converting a garage into a livable space, such as a studio apartment, a home gym, or an additional bedroom, can seem like an ingenious way to maximize your home’s square footage and potentially generate rental income. Homeowners typically spend between $6,002 and $27,705 on such projects, according to Angi. Yet, despite the substantial investment and the creation of new interior space, this renovation project rarely adds value to the home and often has the opposite effect.
Real estate expert Alex Capozzolo advises strongly against this particular renovation, stating, “Keep the garage as is.” His reasoning is straightforward and practical: many homebuyers are actively searching for properties that include a functional garage to park their vehicles, store belongings, or use as a workshop. When you alter the garage layout too significantly, it loses its fundamental purpose and value in the eyes of these buyers.
The perceived benefit of an additional living area is often outweighed by the loss of designated parking and storage space. Buyers often prioritize practical elements like vehicle protection and ample storage, especially in areas where street parking is at a premium. Consequently, a converted garage can narrow your pool of potential buyers and may even lead to lower offers, as new owners might factor in the cost and effort of converting it back to a traditional garage.
6. **DIY Projects**For many homeowners, undertaking DIY renovation projects is an appealing prospect. It offers a seemingly budget-friendly option to update a home, instill a sense of personal accomplishment, and potentially add value without the hefty costs of professional labor. While simple, well-executed DIY improvements can indeed be beneficial, the risk significantly increases when projects are tackled without the necessary expertise or precision, potentially leading to unforeseen consequences during a home sale.
The truth is, even seemingly straightforward DIY home improvement projects can go horribly wrong if not handled correctly. Buyers are incredibly discerning, and they possess a keen eye for quality. Visible flaws, shortcuts, or substandard finishes from a DIY effort are not only noticeable but can actively detract from your home’s overall appeal and perceived value. What might look “good enough” to an untrained eye could signal larger underlying issues to a professional home inspector or an experienced buyer.
Ultimately, while saving money on labor costs might be the initial motivation for a DIY project, the long-term impact on your home’s resale value can be detrimental. Spending the extra money to have the job done correctly by a skilled professional often yields a much better return on your investment. It ensures high-quality results, instills buyer confidence, and avoids the need for subsequent repairs or price reductions that could easily erase any initial DIY savings.
Continuing our journey through the renovations that astute homeowners should think twice about, we turn our attention to additional projects that might seem appealing but can, in reality, diminish your property’s value and appeal to potential buyers. As you prepare your home for sale, especially in a dynamic market like Los Angeles where homes receive multiple offers but buyer expectations are high, understanding these pitfalls is key to maximizing your return and ensuring a smooth transaction.
