While it is true that renovation can bump up home value, there are certain improvements that create the adverse effect. Moves such as removing a bedroom, tearing down a closet, repurposing garage space and putting up more wallpapers than necessary can all lower down the value of a home.
Removing a bedroom is a major home-improvement blunder even if it creates a larger bedroom or living room in its place. The reason is simple, the more bedrooms a home has, the higher price it can command.
In listings, the numer of bedrooms is an important characteristic that prospective homeowners consider when comparing two real estate properties. Pekel Construction and Remodeling President David Pekel said, "When you start eliminating bedroom space, you've completely changed the comparable value of your home in the neighborhood."
Reducing the number of bedrooms also affects the interest of potential homeowners. "There are people who won't look at two-bedroom or three-bedroom homes," New York real estate agent Brendon DeSimone pointed out. His professional opinion agrees with the annual Profile of Home Buyers and Sellers by the National Association of Realtors which showed that the typical home purchased over the last year was a single-family home with three bedrooms.
Removing a closet also dings the value of a property. Michele Silverman Bedell, chief executive of New York residential agency Silversons, shared an experience of hers several years ago when a client took out the closet of the master bedroom to give way for a sprawling master bath. She said that the change made the home harder to sell as potential buyers "walk in and count the number of closets per room."
DeSimone also emphasized that most prospective homeowners possess cars so getting rid of a garage makes a property less appealing. This renovation will also remove much-needed storage space for many homeowners. Likewise, a recent survey conducted by Crescent Communities show that 74 percent of recent buyers said that having a garage is extremely important.
Moreover, Bedel said that too much wallpaper can also lower down the value of a real estate property. Installing wallpaper may seem harmless but an overabundance of it may put off interested buyers. It can be removed but it is a difficult and expensive endeavor.
