Your Home, Can You Make It Too Nice?

Written on 04/02/2024
Cherish P.

Discover the surprising truth about home improvements – it's possible to make your home too nice! This could be the most crucial advice you'll ever receive on enhancing your living space without breaking the bank. The term "over improvement" in real estate might catch you off guard, revealing itself long after you've invested your hard-earned money, thinking it was a smart move.

We all love a fresh coat of paint or a new upgrade to brighten our homes, but how do you define an OVER improvement? A recent HGTV episode debunked the myth that homeowners can expect 200% to 300% returns on their improvement investments – the reality is often less than 100%.

Consider this: If you're contemplating adding a new deck today, the odds are you won't recoup the full cost when selling (if you plan on selling in the very near future). Yet, if you added that deck five years ago and enjoyed it, you could still fetch a reasonable return on your investment in the home sale. It's a common misconception that spending $10,000 automatically adds that amount to your home's value.

In my experience, investing $35,000 in a room addition rarely translates to a matching resale value. You might get $15,000 more, but never the full amount spent. If you're improving your home for personal enjoyment, it makes sense, but if it's solely to boost resale value, it might not be a wise investment.

The top three improvements that consistently pay off: A fresh coat of neutral paint, new carpet or flooring, and basic maintenance needs. Not only do these upgrades add resale value, but they also position your home as turn-key, potentially speeding up the selling process.

Before you embark on any improvements or additions, consult with your trusted real estate advisor. Most of us offer free advice over the phone with no obligation. So, take a moment to envision changes in your home – would improvements make sense, or is it time to explore a move to a home with those features already in place? Your happiness with your day-to-day life is the most important thing.

Do you Cherish Living in the home that you are in?