All upgrades add value to your home is one real estate myth that you must never fall for if you don't want your investment down the drain. A fact, on the other hand, is that you may never recoup the full costs of your home upgrades.
When doing upgrades to increase your home's value above and beyond the amount you spent on renovations, the right mindset is that what matters to you will not always meet with the potential buyer's preference.
So, if you are looking at doing an upgrade, trulia.com and Yahoo! Homes would like you to know these 5 home upgrades that will make you lose money so you don't end up in regret:
Swimming Pools
Unless you live in an area with a warm-weather climate, then adding a pool may not be the wisest idea. It really is a hit or miss, and concerning value, it promises very low return.
Some buyers may find an issue with safety especially if they have small kids. Others may just not have the cash to pay for this extra feature. While there are some, who would consider owning one, but they will immediately realize the cost that comes with operating and maintaining and may quickly change their mind.
In short, the chance of recouping what you spent on installation and maintenance is pretty low.
Built-in Electronics
The problem with splurging on built-in electronics is that they don't stay top-of-the-line for long; your 'latest' home entertainment system only stays 'latest' until the newer and sleeker version comes along - and they come quickly, most of the time. Potential buyers, after a year of installation, may already find the feature outdated and you will not be getting paid for that.
Highly Custom Design
You would want to avoid going for ideas that are too personalized unless you plan to keep the house for a very long time. Your idea of a dream kitchen may not be the potential buyer's idea of a dream kitchen, so you would like to stick with neutral, builder-grade decisions.
These custom features may even cost you come listing time if there are too many things that the buyer wants to change to suit their preference.
Overimproving
You would not want your property to be the odd one out. As much as possible, keep your home upgrade down low, ensuring that you stick to the base level of the neighborhood you belong to. It's two cases: the potential buyer who feels drawn to the neighborhood may not be able to afford the property, or those who can afford would end up looking for a ritzier area.
It's okay to standout a little and be nicer than other houses, but you would not want to go overboard and make the house look completely out of place.
Eliminating a third or fourth room
While having a walk-in closet or master bath is a plus, it's not the wisest home upgrade if you have to eliminate a room to make way for either. You would not like to send out that vibe of a lacking room; it is a major disadvantage. The number of bedrooms must be in balance to the living space; having too few or too many can make the layout lopsided.
