From the SOUND OFF column in the Greenwich Time, February 6th, 2015
Q: What renovations would not increase the value of a home for sale?
A: When considering undergoing a home renovation, it is important to weigh many factors that will determine the return on investment.
Is the intention of the renovation to sell in the near future, or does the owner plan on staying in the home for years? If an owner’s aim is to sell in the near future, it is important to consider the current trends in the market. Making personal choices that are not in style with these trends may be a costly mistake. If the owner’s outlook is to stay for a long period after the renovation, then using timeless finishes is best. Today’s style may no longer be acceptable to the market when it’s time to sell. Choices on finishes such as flooring, tile, countertops and light fixtures influence a buyer’s perception of value.
Cutting corners, or trying to save money in the wrong places, can also be a costly mistake when doing a renovation. For example, buying cheap tile and having it turn color when it is exposed to the wet thinset used when applied to the wall or floor can hurt.
Keeping up with technology is also a factor. In today’s world of Bluetooth and wireless electronics, it may not pay to have the house hard-wired for a sound system or security cameras. Lighting and thermostats can now be controlled remotely from a smartphone.
Lastly, specialty renovations are also a subject of concern. For instance, elaborate wine cellars are an expense that the next homeowner may not be interested in. I previewed a home today that had a 2,000-bottle climate-controlled wine cellar that the next buyer replaced with a sound studio for band practice. Put simply, be aware of the “personal touch” choices when renovating a home.
A closing thought: It is important not to be the most expensive house in the neighborhood because the value of a home is dependent on the market, therefore, the cost of the renovation should not exceed the value of the home.
See link to original article here