While some renovations add value, in our latest post, we want to let you know about the worst projects for adding ROI to your Fort Myers property.
Not every renovation project is good for your bottom line. Some renovations simply aren’t worth it. Below, we will discuss some of the worst projects for adding ROI to your investment property.
Adding A Bathroom
Adding an extra bathroom is frequently desired by buyers, but the high cost of construction can deter potential purchasers. The average expense of a bathroom addition exceeds $40,000. However, upon resale, the property’s value may only increase by approximately $20,000, which is substantially less than the cost of the addition. Consequently, while desirable, adding a bathroom may not necessarily result in a significant return on investment during the selling process.
Major Remodels
While some believe that fully remodeling their kitchen or bathroom will entice buyers, this approach may not always yield the desired results in terms of added value for a sale. Major renovations can be expensive and may result in unexpected additional repairs, leading to escalating costs without a proportional increase in home value. Furthermore, highly personalized renovations might deter potential buyers who don’t share the same style preferences. Offering buyers a credit to make repairs according to their own tastes can be a more practical and appealing incentive, allowing them to customize the space to their liking.
Sunroom
While the concept of adding a sunroom is appealing, the associated expenses can be substantial. Additional insulation, construction costs, and ongoing maintenance quickly accumulate. While a sunroom can provide immense enjoyment, the return on investment upon selling your home is likely to be relatively modest. Moreover, the addition of a sunroom can potentially raise your monthly heating and cooling expenses. Implementing excellent insulation can help regulate temperature fluctuations, mitigating excessive heating or cooling costs.
The allure of owning a pool is undeniable. However, while having a pool can be enjoyable, it often doesn’t significantly increase the value of your home. Pool maintenance can also be costly and may deter potential buyers who would otherwise be interested in your property. If a buyer desires a pool, they can always add one themselves after purchasing the property. Alternatively, if pools are popular in your neighborhood, you might consider providing a schematic illustrating how a pool could be incorporated into the backyard. This visual aid allows buyers to envision the potential, helping them to imagine the property with a pool.
Before undertaking any renovations on an investment property, carefully consider the potential return on investment. While some projects can enhance the property, others may not provide a substantial return. Crunching the numbers is essential to determine which improvements and renovations are worthwhile for your investment property in Fort Myers.
Garage Addition
Garages undoubtedly offer practical utility, whether for parking vehicles or storing belongings. However, the overall increase in your home’s value may not justify the expense of building a garage. Costs associated with permits, materials, and construction can accumulate, rendering a garage addition financially unfavorable if your goal is to maximize profit margins upon resale. As an alternative, you can inform potential buyers about the possibility of adding a garage and provide estimates of associated costs as a bonus feature.
Pool
Who doesn’t love the idea of floating in a pool? Having a pool is wonderful, but it doesn’t add much to the value of your home. Pool maintenance can be expensive and may even deter some buyers who would have been interested in your property otherwise. If the new owner wants a pool in their backyard, let them add one after the sale. If pools are a popular feature in your neighborhood, you could always offer a schematic showing what one would look like in your backyard. This way the buyer will be able to visually see the potential, helping them paint a picture in their mind of what a pool could look like.
Before making any renovations to an investment property, consider what the return will be like for you. Some projects will be great additions to the house, but won’t provide much of a return on your investment. Run the numbers to really understand which improvements and renovations you should be making to your Fort Myers investment property.