Many homeowners believe that their home’s value is automatically increased if they have a unique feature. They think that they should be able to place a higher asking price on their home in comparison to similar homes in the same neighborhood that don’t have these features. However, homeowners should be aware of certain factors that determine whether a feature increases or decreases the value of a home. Some of these may be surprising!
Swimming Pools
How this can Increase Value: For luxury homes with large yards, swimming pools can certainly add value. A pool with additional special features such as an attached hot tub, a waterfall, a unique shape, or mosaic tiles can be a valuable aspect of a high-end home. Furthermore, a pool can only really add value to your home if it’s in good condition and properly maintained.
How this can Decrease Value: Swimming pools can take up most of the yard space and can be expensive to maintain. A property’s value can be negatively affected if the pool is in need of a lot of repairs. Some buyers do not want to deal with the added maintenance and costs involved with owning a pool and may be deterred from submitting an offer on the home. Many homebuyers with very young children may also be hesitant to purchase property with a pool unless it is properly gated, as it can pose a risk to their loved ones.
In-Law Apartments
How this can Increase Value: A well-updated and cohesive In-law apartment is very attractive to buyers who are looking for one. Perhaps they have a family member looking to move in with them, or maybe they want to rent it out to make some additional income on the side. For those kinds of buyers, this does add value to the property. However, it needs to be cohesive and not take away from the home’s overall appeal.
How this can Decrease Value: Many people believe that in-law apartments automatically increase the value of a home, but this is just not the case. The reason being is that there aren’t as many buyers out there who are looking for a property with an in-law apartment. It’s simple economics: Fewer buyers equals less demand, and less demand can equal a lower value of your home. Property owners also must have the proper permitting in place to allow for an in-law extension on their home.
Landscaping
How this can Increase Value: A well-landscaped yard adds a great deal to a home’s curb appeal. In fact, excellent landscaping can add up to 15% to your property’s overall value! This is one of the few home improvements that can increase the value as the years pass. While interior designs and decor regularly go out of style and mechanical systems wear down, plants and trees grow fuller as time goes on so long as they are properly maintained. Additionally, a lot of these improvements are inexpensive and typically can be done in a weekend, such as replacing your mailbox, buying new addressing numbers, or adding some potted flowers to your front step. When prospective buyers pull up to a home for the first time, they don’t want to see a yard that is run down and lacks landscaping. It just creates another task for them to add to the “To-Do” List. Ultimately, the landscaping outside of the home is a potential buyer’s first impression.
How this can Decrease Value: While buyers may appreciate well-maintained landscaping, some may not have the desire to have to keep up with the yard themselves. If a buyer views landscaping as a burden, they will probably not consider it as a bonus when considering the value of the home. Landscaped yards with an abundance of plants that need extensive care may end up scaring buyers away due to the cost, time, and effort it takes to effectively maintain the property.
Sheds and Garages
How this can Increase Value: Sheds and garages that are in good condition often do add value to a home, especially if they are attached to the house. For buyers with an abundance of personal belongings, sheds and garages offer the opportunity for extra storage and better home organization. Additionally, these spaces are very versatile, as they can be used for more than just a storage solution. With a little creativity, you can transform your shed or garage into a functional space such as a workshop, a music studio, a home gym, and more! Pristine-looking sheds and garages can also add to your home’s curb appeal!
How this can Decrease Value: Functionality and condition are two big factors when it comes to determining whether the shed or garage will add or take away value from the home. If it looks out of place, is too big/small for the yard, or is in need of extensive repair, buyers may be turned away.
Renovation Projects
How this can Increase Value: When it comes to renovation projects, there are two directions you can take. First, you can update one of the main living spaces so it’s more modern and functional, such as a kitchen or bathroom. Second, you can convert an unused space, such as an attic or basement, into an additional room. It could move your home from the 2-bedroom home category to the 3-bedroom home category, for example, which will increase the value of the home. Also, in today’s day and age, many people work from home. This means that many buyers are looking for a space perfect for an in-home office. Both of these options can attract more buyers, and in turn, enhance your property’s overall value.
How this can Decrease Value: While the room change may have suited your needs, it may not suit your potential buyer’s needs. For example, say your children move out of the house and you convert that third bedroom into a walk-in closet. This automatically narrows your pool of buyers since you’ll have to list it as a 2-bedroom instead of a 3-bedroom. This also lowers the asking price on a home because now it has one less bedroom.
Conclusion
In conclusion, while unique features can potentially elevate a home’s appeal and market value, their actual impact varies depending on factors like market demand, maintenance, and features buyers are looking for. Features such as swimming pools, in-law apartments, and extensive landscaping can either enhance or take away from a property’s value based on how they align with prospective buyers’ needs and desires. Homeowners considering renovations or additions should weigh these considerations carefully, aiming for improvements that improve both functionality and aesthetic appeal to attract a wider pool of buyers.