Renovations that May Lower Your Asking Price

Posted by Gurpreet Ghatehora on Sunday, November 8th, 2015 at 9:10pm.

In today’s market, many home sellers are looking for anything that can give them a competitive price and increase their asking price, but many don’t understand the buyer’s mindset before they start renovations. There are many projects that can actually increase your home’s asking price, and see it sold faster, but these following projects will probably do the exact opposite.

1. A Pool or Hot Tub

Who doesn’t love having a pool in their backyard? Well, it turns out most people hate it. Pools and hot tubs are not only money vacuums, they also turn people off most houses. The reasons are diverse, but can include worrying about young kids’ safety and the costs involved with keeping a pool or hot tub operational every year. Many families also dislike their size, often taking up large portions of the backyard that prospective buyers may want to use for other purposes. And especially in Edmonton, a pool is simply unusable for a vast portion of the year. A more sound investment for your backyard is some simple plants and upkeep: make your backyard look appealing and people will keep looking. Limit its usefulness and potential buyers will look elsewhere.

 

2. Paint Jobs

The latest colours and techniques may look great, but very rarely does the cost of extensive painting actually pay off when it comes to asking prices. Most buyers will come into a home knowing theyre going to paint it differently, even if you think you have a great eye for colour and design. The reasons, just like with pools, comes down to options and choices. People moving in will have very different visions and come with their own furniture that will probably look bad with any trendy, brand-new paint schemes. If your house looks like it hasnt seen a fresh brush in awhile, it can make the home look rundown, but neutral colours are a much better choice than something bold. Keep it simple and let the buyers imagination run wild.

3. Skylights

Natural light is a big draw for most prospective buyers, but theres a right and wrong way to getting sunlight into your home. The wrong way in almost every instance is a skylight. Not only are skylights expensive to install, lowering your chances of recouping the costs in the asking price, theyre also notorious amongst home buyers. Skylights tend to make homes hotter in the summer, increasing air conditioning bills, and cooler in the winter, lending a spike to heating costs. So while they may bring that natural light, installing bigger windows may be a better idea if your home severely lacks for that natural light.

If you want to gain a competitive edge for your home, some renovations may be in order, but try to avoid the projects above. Not only can they decrease your homes value, they could end up making you sit on your property for much longer than expected.

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