If you’re currently in the midst of renovating your home with the intention of selling it, you’ve likely been advised that the most profitable renovations are typically found in the kitchen and bathroom. These are key areas that many potential buyers focus on when making their decision. However, not all renovations guarantee a significant increase in your home’s value. In fact, some renovations may even have the opposite effect and deter buyers while causing financial strain.
According to a survey conducted by BHG real estate agents, there are three major mistakes to avoid when renovating your kitchen or bathroom if you’re aiming for a good return on investment (ROI).
1. **Mismatched Interiors**: One common error is renovating the kitchen or bathroom in isolation from the rest of the house. While a sleek, modern design with all the latest amenities may look appealing on a listing, it can actually decrease your home’s value if it clashes with the overall aesthetic of the property. It’s essential to ensure that any expensive renovations align with the existing design of the house. The survey found that 52% of agents reported that trendy or unique design choices, color schemes, and fixtures in major kitchen or bath renovations can negatively impact the resale value of a home.
2. **Expensive Fixtures**: Another pitfall is investing in costly fixtures that may not be essential for most buyers. Features like jacuzzis, bidets, saunas in bathrooms, and high-end cabinets, hot water dispensers, or bar sinks in kitchens often do not provide a substantial ROI. Instead, focusing on affordable changes such as fresh paint, repairing old fixtures, and installing reasonably priced cabinets can be more beneficial.
3. **Removing Bathtubs for Steam Showers**: While some homeowners opt to replace bathtubs with showers to create a more spacious or modern look, this choice may not be the most financially savvy. Installing a steam shower as part of a bathroom renovation has been shown to offer a low ROI. If space permits and your home is likely to appeal to families, retaining the bathtub could be a wiser decision.
Although renovating the kitchen and bathroom can increase the value of your home, it’s crucial to make informed decisions that will yield a higher ROI. BHGRE agents note that current home buyers are particularly interested in renovated kitchens (79%), new kitchen appliances (65%), and modern bathrooms (62%). Therefore, prioritizing renovations that cater to these preferences over expensive cosmetic changes can attract buyers and enhance your property’s overall appeal.
