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HOME IMPROVEMENT THAT MAY NOT BE WORTH IT IN THE LONG RUN

Adding value to your property is a smart decision. But beware; there are some projects that sound good in theory but will cost you more than the equity payout.  Here are some projects to avoid:

Home Office Remodel

The home office is a popular space in most homes today. If your home office leaves a lot to be desired kept your improvements simple; a pleasant paint color, better lighting or a nice desk.  Don’t try to remodel it unless there’s a real problem or serious and necessary repair.  Home office remodels return approximately 50 percent of your improvement investment so, don’t knock out any walls.

Installing that Pool

Swimming pools sound wonderful especially in California’s warm weather but, for some homebuyers it’s truly a major hassle, and can be a deal breaker.  Possible investment recovery is roughly 30 percent once the yearly maintenance cost is added in.  Not to mention the new owners utility bills will increase…again, a possible deal breaker.

Put in a master bedroom

Adding a deluxe master bedroom sound great but it’s expensive and calculates as an add-on to your home. This addition can cost up to $100,000 depending on how and where you make the addition.  It’s more cost effective to make smaller changes to your existing master bedroom.  Considering the new homeowners may not like your changes and that the average ROI is 53 percent, it’s likely that your best choice is to keep it simple.

Adding a bathroom

Contingent on what you do it still cost a lot of money to add a bathroom? The essentials of plumbing, electrical, flooring or structural changes add up quickly.  Not to mention appliances and décor you must have just to function.  A basic bathroom could cost between $20,000 and $40,000 while an extravagant bathroom will cost upwards of $70,000.  With the approximate resale value of 59 percent you’re probably better remodeling or renovating an existing bathroom.

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