I'm a Contractor: 5 Home Upgrades That Rarely Pay You Back
A renovation can make a house more livable, yet still lose money the day it goes up for sale. Sometimes, the upgrades homeowners love most are the same ones buyers are least willing to pay extra for.
Jeri Goodkin Dausey, president and certified general contractor of SBC | Expert Construction Services, and John Salvatore Gelfusa, licensed builder and author of The Smart Way To Remodel, both see the same pattern play out with clients who assume every upgrade equals added value.
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While no renovation comes with a guaranteed return, certain projects are more prone to disappoint when it comes to a payoffs. Here are five expensive home upgrades experts say can make selling harder and even leave homeowners far short of recouping what they spent.
1. The Overbuilt Kitchen
A kitchen built around the owner's exact taste doesn't often translate to what the next buyer actually wants. Dausey said a luxury kitchen renovation can run $150,000 to $300,000 or more, but buyers frequently don't share the seller's preferences in cabinetry, stone or appliance layout.
"Depending on the market, the seller could fall $75,000 to $200,000 short of recovering the investment," she said.
2. Eliminating or Converting a Bedroom
Both experts flagged this one independently, and for similar reasons. Dausey said combining two bedrooms into a larger primary suite can cost $30,000 to $100,000, while restoring the original layout later runs another $15,000 to $50,000. Shrinking the bedroom count also shrinks the pool of interested buyers.
Gelfusa saw this quite a bit during the pandemic, when clients converted guest bedrooms into home offices complete with custom cabinetry and stone countertops.
"Our clients spent tens of thousands creating luxury workspaces only to later realize the house would appraise for less after losing a bedroom," he said. He added that the next homeowner may need to spend thousands undoing that custom office, which makes the house harder to sell in the meantime.
3. The Resort-Style Pool and Outdoor Complex
A well-designed pool can help a listing, but the extras rarely pay for themselves. Waterfalls, grottos, oversized spas and commercial-style outdoor kitchens push these projects to $100,000 or well over $300,000, according to Dausey.
"Buyers may focus on maintenance, insurance, safety and energy expenses, potentially leaving the seller $50,000 to $200,000 short," she said.
4. The Ultra-Luxury Bathroom
Steam showers, saunas, oversized jetted tubs and imported stone can push a bathroom renovation to $80,000 to $150,000 or more. Dausey said sellers could easily leave $40,000 to $100,000 of that unrecovered, since these features are taste-specific and come with their own maintenance concerns.
Gelfusa was explicitly against the curbless shower.
"This style shower has its place if a barrier free shower entry is necessary for your independence, but for many it's just a stylish choice," he said. Without a curb, water drains more slowly across the floor, which accelerates wear over time. "You may find yourself having to remodel sooner or accept a lesser value for your home when it comes time to sell."
5. Whole-Home Automation and Built-In AV Systems
Technology moves faster than most renovation budgets account for. Dausey said a $25,000 to $150,000 automation or built-in audiovisual system may already feel outdated by the time a house hits the market, and buyers often prefer to install their own preferred platform anyway.
"Sellers should not expect the equipment's original cost to translate directly into added home value," she said.
What To Do Instead
Dausey's overall advice came down to matching the renovation to the neighborhood, the likely buyer and how long the reversal would take if the upgrade needs to be undone. If you're thinking about selling anytime soon, she said the better return usually comes from fixing deferred maintenance and making neutral, smaller improvements (rather than expensive or personalized ones).
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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