Money Pit Projects That Will Tank Your Home’s Value
As I get older, I steadily realize that a homeowner must assume a banker’s mindset relative to home maintenance. The value of home and property must be maintained at all costs. That can be hard to do, considering how often a person moves around in a lifetime. Between the ages of 18 and 44, the average American moves about 10 times.
After the age of 45, most people only move twice, if that. One reason for that may be that most people begin to appreciate the value of money more as they age. And, the value of their homes. The average price of a new house is about $380,000. A “starter home,” may be half of such a price. The more often that you move, the more likely you are to take a loss on the value of your home or asking price, depending on the state of the real estate market.
If you want to sell a home, you want to sell high and on your own terms. That may be impossible to do if you opt to initiate any overindulgent home renovation projects that detract instead of add to the home value.
Owning a home is akin to having the power to initiate spontaneous construction projects at will. There is always an idea, project, or renovation that you may want to enact. Like converting a bedroom into a storage room, fitness room, crafts room, or anything else that strikes your fancy. Knocking down a non-load bearing wall may cost a hundred dollars per wall. Removing load-bearing walls may cost more.
However, a few hundred or few thousand’s dollars worth of home projects might as well cost tens or hundreds of thousands of dollars. Home buyers pay money that is commensurate to the number of rooms that a home has in it. People sell one-bedroom homes and get bigger homes when they start families.
If you ever sell your home, why would anyone pay you more money for a three-bedroom home that’s been converted into a two-bedroom home?
Basement Beautification Project
Who doesn’t want a maturity-defying basement man-cave? Or a reality decompression basement lounge to go to get away from the pressures of life? The potential future buyers of your home, that’s who! Renovating the kitchen or driveway will add more value to your home more than a basement beautification project.
The next potential owners of your home may just want a basement for storage and laundry use. Potential home buyers are not going to want to pay to undo all the work you put in to make your basement function as anything except a basement.
Trying to become a fish tank king could end up making you a home value loser. Built-in fish tanks could cost you hundreds if not thousands of dollars in installation costs. Owning one could cost you just as much in maintenance and upkeep costs as well. Imagine the effort required to feed the fish and clean the tank consistently.
Assume that a potential buyer interested in your home wants to buy a house and not a lifestyle as a luxury fish tank owner. A potential home buyer is interested in overall property value and living space. Not assuming your maintenance responsibilities for a built-into-the-wall fish tank.
Think About It First
You can do whatever you want to your home. The point is that, before you endeavor to knock down some walls to convert a bedroom into a personal lounge, ask yourself, “How doe this add to the value of my home?”
- Mortgage Payment Hacks That Can Save You Big Money
- Preparing For A Home Renovation
- Tips for Finding the Right Contractor for Your Home