You’re a homeowner now, you can kiss bland uniformity goodbye the moment you turn your apartment keys over to your now-former landlord. The world is your canvas — at least, that part of the world that you now are obligated to pay a monthly mortgage payment on — and you’re the artist that’ll mold it into a shape that tantalizes and delights the senses.
You may have big dreams for that new home, but cool your jets. This is a
time for careful consideration, not for hastily scribbled modern design notes
on cocktail napkins. Although there are certainly changes you can make that
will update or upgrade your new home, there are others that can potentially
devastate its value. This is no small thing.
If you thought that ugly entryway light fixture was a real turn-off,
just read on to learn about things potential buyers will find extremely
unappealing down the road.
There’s Good, There’s Bad and There’s
Ugly
Every homeowner will leave a mark on the homes they own, this is an
inevitable fact of life. The only question you need to ask yourself is if your
mark will be a good one. Will you be the homeowner who planted the gorgeous
maple tree that eventually turns into a beloved climbing tree or are you the
one that glued neon green shag carpet to the hardwood floors?
We’ve made a short list of some of the most dramatic ways to destroy
your home’s value without even trying all that hard so you can, hopefully,
avoid these problems when you go to sell. Now, this is an important point to
note: if you’re in your forever home, go hog wild. If you don’t need to sell
that puppy ever, feel free to do whatever thrills you. Just be aware that your
outlandish choices could prevent things like refinances and even reverse
mortgages down the road.
Having made those disclosures, let’s talk about home value-destroying
projects!
4 Things That Can Lower Your
Home’s Resell Value
Now that you own a
house, people will be giving you all sorts of weird advice. You’re going to
have to learn to tune it out, because generally, random people don’t know. Most
people own two or three homes in their lives, which doesn’t give them a whole
lot of experience with market values and making upgrades that will make a house
really pop.
Realtors, general
contractors and other home pros, on the other hand, make it their business to
know what’s just in vogue and what’s a classic, evergreen sort of modification
that will stand the test of time. These are the people to ask when you really
need a second set of eyes.
But, before you even
get that far, let’s count down some of the worst ideas for your new home.
#4 Really Personalizing the Place
Look, we know you’re
eager to make your house your own. But step away from the lime green wallpaper
and the orange tiles. Just for a minute. Think this through. Some buyers can
see past over-personalization, others simply cannot. There’s a reason Realtors
used to advise sellers to paint everything beige, it creates a blank pallet for
a buyer to start from.
If you want to use
quirky wallpaper, choose something that’s easy to remove when you go to sell.
You may want to choose a tile that is mostly neutral and scatter those orange
ones in just here and there like confetti. In short, tone it down a bit.
However, feel free to paint to your heart’s desire — just plan to repaint
before you put the house on the market.
When a buyer walks
into your home, the first impression they have informs every other thought they
have as they walk through. They’re simultaneously calculating two things in
their heads: “How much can I afford to pay for this house?” and “How much will
I have to pay to fix this place?” Each intolerable thing they encounter, like
that orange tile, is another thing that goes in the repair budget. As it grows,
the price they’re willing to pay shrinks.
Oh, you left the
flamingo wallpaper in your bedroom? The repair budget’s getting pretty heavy.
And these are just the immediately visible things, they haven’t yet gotten to
the inspection period. The point here is: do you, but do it in a way that can
be reversed before anyone shows the house.
#3. Converting the Garage to Anything Else
There’s a difference
between using your garage as a gym and making it a gym permanently. When it’s a
permanent gym, you can’t push some stuff out of the way and pull the car in
real quick to get it out of the rain. In fact, you probably don’t even have a
garage door anymore!
Many people have made
this hasty decision, turning their garages into master suites, home gyms,
playrooms and home offices, not considering the long term ramifications. Then,
after dumping thousands of dollars into the project, they find out that it’s
extremely difficult to resell their home.
No matter how
professionally the conversion was done (and some are done very well), the buyer
says to themselves, “Where am I going to stash my lawnmower?” Even if the
yard’s a postage stamp, it’s a valid question.
Buyers come into a
transaction with a certain set of expectations and, frankly, when they’re
looking at houses in certain areas or certain prices that typically come with
garages, it sort of breaks their brains to find one that doesn’t quite fit the
model. That’s the beginning of the price chopping spiral. Eventually you’ll
discount the house much more than you ever intended or just give up on selling
and rent it out or not move at all.
#2. Tearing Down (Some) Walls
This one is actually
not a hard and fast rule. There are sometimes walls that should come out. But
don’t make this call without consulting with an architect or a general
contractor because there are several things to consider, including the
structural integrity and flow of the home.
The walls that you
definitely should never tear out are the ones that reduce bathroom or bedroom
number, unless you have something like five or more beds and three or more
baths. At that point, you have a little wiggle room. As long as you maintain
the American standard of a three bedroom, two bath home (or whatever is
standard in your neighborhood), you’re probably ok.
However, turning a
three bedroom home into a two bedroom home because you wanted to expand a
bedroom is a value killer. If you think about it from a market perspective, it
might make a bit more sense. A larger, or more mature, family is most likely to
buy a three bedroom home. They’re going to have a bigger budget because there
are two incomes, they need more partitioned spaces because there are possibly teenagers
involved.
The same house with
the same square footage, but with two bedrooms, is more likely to be shown to
young families with small children, possibly only one income while one parent
stays home to raise the toddlers, or even single people. Their budgets are
smaller, which means that the two bedroom market simply doesn’t support the
higher prices of the three bedroom market.
When your home is
appraised, your appraiser will be pulling comparable homes based on things like
neighborhood, square footage and numbers of bedrooms and baths. So, if the
other two bedroom homes are selling for $30k less than three bedrooms, that
means yours is going to appraise somewhere well below where you might expect,
maybe even below what you paid for it.
Bottom line: Don’t
knock out walls without professional consultations with your Realtor and an
architect or general contractor at minimum so you can understand the full
impact of this decision.
#1. Unprofessional DIY Repairs
There are two kinds of
DIYers: those with significant trade experience and those without. If your main
qualifications involve eighth grade shop class, you probably should not try to
handle any big jobs on your own. Start small and work your way up, watch lots
of YouTube videos, practice on test materials that don’t affect your home and
for the sake of your house and your financial future, recognize and accept when
you’re in over your head.
A home pro is often
less expensive than you might imagine if you just call them in first. When
they’re asked to clean up a bad repair and still make the original correction,
it can cost a lot extra.
Finding these sorts of
obvious DIY repairs in a home is a terrifying prospect for potential buyers.
When they see them, they wonder what else you’ve tried to repair on your own.
Did you rewire the electrical box? Is the house going to burn down in the night
because you did something to the HVAC?
Because they don’t
know you or your level of competency, they just see that one botched repair and
hyperfocus on it until they either run away or submit an offer significantly
lower than what you were expecting.
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