If you live in an area where homes are selling like hot cakes, you may be feeling exceptionally confident in the value of your property. And as a result, you may be considering a home upgrade you've been dreaming of for years. Perhaps you want to add a pool, or maybe you want to add more square footage to your home. Or maybe you're just aching to do something because you've been watching way too much HGTV.
Before you dip into your savings account or apply for a home equity loan, experts say you should think long and hard about your financial investment and your choices. Just because a specific upgrade seems like a good idea right now doesn't mean it will pay off later. Plus, there are some upgrades that many homeowners regret almost instantly, either because they wind up overspending or because were a bad idea in the first place.
Seven Home Improvements You May Live to Regret
Home remodelers, beware. Spending money to "upgrade" your home doesn't always pay off, and it could even hurt your home's value in the long run. Here are some upgrades the experts suggest you steer clear of:
#1: Garage conversion
A garage conversion can seem like a good idea if you need more living space and don't mind parking in the driveway or street. However, this remodeling project comes with plenty of risk. Not only are garage
conversions often done poorly and in a way that makes them look obvious - and awkward - but you can face problems if you remodel your garage without getting proper permits.
Vincent Nepolitan of Planet Home Lending points out another potential problem: When you go to sell, you may find a more limited pool of potential buyers. Not having a garage for buyers to park their vehicle can limit the number of people you get through the door, thus preventing you from getting the sales price you want for your home. This is especially true in areas where all the neighboring homes have garages, Nepolitan says, and in areas with hard winters or sizzling-hot summers.
#2: Converting a bedroom for another purpose
With more people working remotely than ever before, it may seem like a good idea to convert a spare bedroom into an office. This can be a good idea if you only make superficial upgrades like replacing a bed with a freestanding desk. But there could be financial consequences if you pour a lot of resources into the renovation or make structural changes - converting the closet into a built-in desk area, for example - so the room no longer qualifies as a bedroom afterward.
The reason for this? Homes with more bedrooms can fetch a higher sales price and tend to attract a larger pool of buyers, says Georgia-based real estate investor Shawn Breyer. A buyer with two children might insist on having three bedrooms, for example, and be unwilling to consider any two-bedroom homes. They might also be willing to pay a premium to secure a home with a fourth bedroom they could use as a guest room.
The bottom line: When it comes to a home's value, the more bedrooms the better - so don't think long and hard before getting rid of one.
#3: Adding a pool
It's easy to think having a pool would make your life more fun and more relaxing. After all, what's better than spending a lazy day floating in the water with a cold drink or a good book?
Unfortunately, the reality of pool ownership doesn't always line up with expectations. Pools may be great for summer, but they're often expensive to maintain over the long haul, says CEO of Patch Homes Sahil Gupta, and require a lot of work, from adding chemicals to cleaning and maintenance.
And, you may not find your pool quite as fun in a few years' time. Gupta notes that pools tend to go unused during winters and once kids leave the house, and that they may eventually become a safety hazard for grandkids or pets. (In fact, a pool can increase your home insurance premiums.)
Finally, only a limited number of buyers will even want a pool in certain parts of the country, so you might wind up selling your home for less than you wanted or waiting longer for a buyer as a result.
#4: Kid-related upgrades
While pools are commonly added by families with kids, there are other kid-related upgrades homeowners may rush into without thinking them through, says Julie Gurner, senior real estate analyst at TheClose.com. "Some upgrades consumers tend to regret are, for example, linked to children and their temporary place in the home," says Gurner.
A solid example would be adding a basketball court to your backyard because your child is really into the sport. "Sports courts require maintenance and take up a large portion of the backyard recreation space," says Gurner. And not every buyer will want a basketball court in their yard when you go to sell.
Before you go through with a costly upgrade that may only be needed for a few years, consider whether there are less permanent and less costly options available.