Renovations that won’t give you good return on investment

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If you're renovating to increase the value of your home, you need to think about your renovations more carefully.

You only want to invest in a pool if you plan on using it. If you invest in a pool to attract a higher selling price, you will probably be disappointed. Pools have a few disadvantages:

Many home buyers don't want a pool.

Pools are expensive to install but don't add their full value to the sale price.

A pool takes up an enormous amount of backyard space. Home buyers might want to use that space for something else.

Rather than investing in a pool, use a pool as a selling point.

Home buyers want to see a neat and tidy kitchen, but that doesn't mean you should pull out all the stops and install an expensive new kitchen. Kitchen designers know that every client has their own taste and style. A kitchen renovation can cost $30,000 or more if you choose high-end materials and appliances but probably won't give you a greater return on your investment. It's better to make cosmetic improvements to your existing kitchen than to invest a lot of money in a trendy kitchen that won't give you a good ROI.

Gyms, wine cellars and other rooms dedicated to limited activities can be great investments if you're planning on staying in the same location for many years. If you're selling your home, though, dedicating a room to a limited use can backfire on you. You won't get your money back and you may lose potential buyers who don't want to go to the expense of renovating the room to suit their purposes.

You feel like your master bedroom is too small and decide to knock out a wall and combine two bedrooms. Removing a room like this can be a big mistake. You won't recoup the cost and potential buyers may be looking for an extra bedroom.

Rendering can rejuvenate a home, but if you're selling, rendering and other expensive exterior treatments can backfire on you. Many home buyers want a home that blends in with other homes in the street. If your home exterior looks worn, clean or repaint it, but don't spend more money than you need to.

You do want to make your home presentable, but going overboard is not the way to go. Your renovations can turn away buyers who might otherwise be interested in your property.

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