Remodeling? Avoid These 10 Home Improvements That Do Not Add Value

In one instance, Suits had a client who completed a DIY bathroom remodel with unappealing results. The client attached a frame to a built-in frameless mirror but only added the frame to three of the four sides. They were also considering adding fake linoleum wood to replace the existing tile, but Suits advised against it. “I recommended they spend their money on doing one project well so they could get more bang for their buck.”

Beyond disappointing results, DIY projects often end up costing sellers more than they expect. The more you spend on a project, the less you may actually get back when it’s time to sell.

“We tend to watch a lot of HGTV, and it’s amazing to see what these people can do to a home. But there [are] a lot of risks behind closed doors to those projects. You could easily end up spending more money than you planned,” comments Ray Mihara, a top agent in Tampa, FL, who sells 66% more single-family homes than the average agent.

If you’re thinking of starting some DIY projects, proceed with caution. You’ll need thorough planning, hard work, and solid craftsmanship to pull DIY off successfully.

2. Garage conversions

Whether you need an in-law suite or a home office space, there are plenty of reasons why you might consider a garage conversion. But if you’re wondering, “Should I convert my garage to a living space?” it’s worth thinking twice before moving forward if you plan to sell anytime soon.

On average, homeowners spend around $17,000 to convert their garage into a living space, but unfortunately, this home improvement does not add value to their home.

The reason? Most buyers prefer a functional garage to an extended living area. Most buyers prefer having a usable garage over extra living space. In fact, losing a garage can be a dealbreaker for some buyers, especially in areas with limited street parking. It can make your home feel less practical compared to similar listings, which can hurt your resale appeal.

Additionally, many real estate agents share that most buyers, especially those in colder climates, want the option to store cars inside the garage to keep their vehicles clean and frost-free.

3. Solar panels

If you aim to reduce your carbon footprint and monthly electricity bills, installing solar panels might seem like a no-brainer. However, solar panels do not typically increase home sale prices.

Solar panel cost and ROI vary widely based on location and solar panel type. But on average, solar panel installation costs an average of $27,000 for a standard home, but it only results in a modest gain of about 3% to 5% in home value.

The value solar panels add also depends on whether you lease or purchase the panels outright. Since leased solar panels belong to the solar company, not the homeowner, they do not add value to your home.

Purchased solar panels, on the other hand, may contribute to your home’s value. However, this value-add decreases over time, as the panels age and improved models enter the market.

4. Quirky wallpaper

A fun wallpaper may seem like a quick, low-cost way to add personality and make a space “Instagram-worthy.” It’s easy to assume that bold visual upgrades stand out to buyers and translate into higher perceived value. However, that’s not always the case.

Most homeowners spend between $325 and $825 to wallpaper a room, a cost they’re unlikely to recoup at resale. Wallpaper is highly personal, and a pattern that appeals to you may or may not appeal to a wide range of buyers.

In fact, most real estate agents recommend removing wallpaper before selling your home to create a neutral interior with mass appeal. If you’re thinking of revamping your walls, consider hiring a professional to apply a fresh coat of light gray, beige, or white paint instead.

5. Custom luxury upgrades

If you want to make extravagant upgrades to your home, be warned that custom, luxury home improvements typically only recoup a fraction of project costs. For example, according to Remodeling Magazine’s 2020 Cost vs. Value Report, a high-end kitchen remodel only recoups around 36% of the costs, significantly lower than a minor kitchen remodel, which recoups 113% of costs on average.

Suits experienced this firsthand when she had a client who installed a high-end custom kitchen before selling:

“He put in a great kitchen, but the rest of the house didn’t match. The master bath wasn’t great, and he probably would have gotten more money back if he [had] put in more work in other areas of the house.”

Suits explains that the reason luxury home improvements do not add value is that these remodels are often highly personal. Homeowners tend to splurge on high-end materials and finishes based on their personal preferences. When buyers tour a home, they often see luxury upgrades as a “nice bonus” rather than a must-have, and they usually don’t know what the project actually cost or how much the materials matter.

6. Wine cellars

If you’re selling soon, Suits says it’s not advisable to “spend big money on items like a wine cellar” since even the most passionate wine connoisseurs are unlikely to spend more for this bonus feature.

Even serious wine collectors usually already have their own systems or specific preferences for storing their collection, so a built-in cellar may not match what they actually want. It can also feel like a feature that’s tailored to a past owner’s lifestyle rather than something universally useful to most buyers. As a result, it often gets viewed as a niche luxury rather than a value-driving upgrade in the eyes of the market.

A custom wine cellar can add elegance and a “wow” factor to your home, but for an average cost of $40,000, it’s unlikely to recoup the majority of the respective project cost.

7. An oversized home addition

Before you significantly increase your home’s size, research the average square footage for homes in your neighborhood. If a second story or home addition makes your home the largest in the neighborhood, you could struggle to sell your home down the line.

Homes in a neighborhood tend to be valued within a certain range, and going far above the typical square footage can make your property harder to price competitively. When a home is significantly larger than surrounding properties, buyers may not be willing to pay the premium, since it breaks the “neighborhood standard” that often guides value.

“You really have to pay attention to the price range in your neighborhood,” says Mihara. “It’s good not to get carried away. In a lot of cases, the more you do, the more it will sink the bottom line.”

8. Remodeled basements and attics

Are you thinking about clearing out the cobwebs and turning your basement into a cozy living space? Suits says a remodeled basement can help sell your home, but you won’t necessarily recoup all of your money on it.

According to data from Remodeling Magazine, a midrange finished basement typically recoups about 71% of its cost. So even in a “best-case” scenario, you’re still not getting all your money back at resale, which means homeowners end up taking a loss on a pretty expensive project. Buyers also tend to care more about above-ground living space, so a basement often doesn’t do much to move the needle when they’re comparing homes.

A finished attic offers an even lower ROI than a finished basement. On average, finishing an attic costs around $20,000, and converting it into a living space typically recovers about 67% of its cost.

This project tends to have lower cost recovery because buyers don’t always see it as “real” usable living space like bedrooms or main-floor rooms. It can also raise questions about things like access, ceiling height, and overall comfort, which makes buyers less likely to pay extra for it at resale.

9. New windows

When it comes to window replacement, a good rule of thumb is to only replace broken or leaky windows. Window replacement isn’t cheap: new windows cost between $300 and $2,100 on average. And while this upgrade increases a home’s marketability, it only recovers 50% to 75% of the project cost at resale.

If your windows are in bad shape, it’s best to upgrade to new vinyl windows since these offer a 76% return on average versus wood, which has a 70% return on average.

10. Swimming pools

The last item on our list leaves room for debate: swimming pools. Do swimming pools add value to a home?

Installing an in-ground pool costs about $66,000 on average, but the return usually sits anywhere from 5% to 56%. Even though in-ground pools do better than above-ground ones, they still don’t stack up well against upgrades like kitchens or landscaping. A big reason is that pools come with ongoing upkeep and costs, and not every buyer wants the extra responsibility.

However, Suits notes that this perception has shifted in recent years, especially during the pandemic, when outdoor living became a lot more important, and people started valuing their home spaces differently. He adds that pools used to be seen as a “break-even” feature, but now they’re viewed more depending on how much buyers care about outdoor leisure and staying at home.

“I never wanted a pool, but for the first time during a pandemic, I wanted one. We used to say with pools that you wouldn’t lose money, but you wouldn’t gain it either. But outdoor living has become considerably more desirable.”

How to fix or offset past renovation missteps

After looking at some of the top home improvements that don’t add value, it’s clear how easy it is to end up with upgrades that don’t really pay off at resale. Maybe it was a bold design choice, a big project that didn’t age well, or something that made sense at the time but doesn’t quite work for buyers now. The good news is you’re not stuck with it. Here’s how to reverse or soften the impact of past over-personalized or poorly executed renovations:

Home renovation value checklist: Will this hurt resale value?

Now that you’ve seen which home improvements don’t add value, it’s just as important to know how to spot trouble before you start a project. Not every renovation is a bad idea, but some can quietly drag down resale appeal if you’re not careful. This checklist helps you sanity-check your plans before spending a dime.

Not all home improvements add value

A final word to the wise: Consider your selling timeline before you embark on a home improvement that does not add value to your home. If you plan to sell your home in the near future, it’s best to spruce it up with a new coat of neutral paint and other improvements proven to add value and increase marketability.

On the other hand, if you plan to stay a while, Suits shares it’s okay to focus on home improvements that bring you joy, even if they don’t add significant value to your home:

“Do whatever makes you happy. To me, that is really what homeownership is all about. Just realize you might not get every dime back, or you might have to [modify] it. [But] chances are, if you love something, someone else might too.”

Header Image Source: (R ARCHITECTURE / Unsplash)