Remodels That Make Sense for Resale and Some That Don’t

Here are 5 projects that offer the best ROI for resale…and 5 that should be avoided
Source: Houzz.com, May 12, 2019 | Author: Matt Clawson

Repeat after me: I am the master of my remodel. Perhaps you should say it again, because sadly, it’s not always so. Remodels sometimes have a tendency to develop their own inertia, as decisions lead to new dilemmas, unintended consequences and surprising outcomes. In some cases, these flights of fancy are perfectly acceptable, provided the design and completed execution truly align with the vision and budget.

But if your budget is a concern, and the wise investment of limited home improvement dollars matters, then there are a few basic guidelines you should familiarize yourself with before planning your remodel. Today we review five remodels that typically make good financial sense, providing a nice return on the investment at the time of resale — and five that don’t.

Remodeling Projects That Offer Good Resale Value

1. Kitchens. 
Updating a tired old kitchen is one of the wisest methods, and a tried-and-true one, of increasing the value of your home. When planning a kitchen remodel, and making design decisions and selections for plumbing fixtures, appliances, cabinets and countertop materials, you should determine whether you are prioritizing your own design aesthetic or the return on your investment.

Either priority is perfectly acceptable, but you should understand which is your priority, or strike a balance between the two that you can feel good about.

For example, using the existing kitchen layout and affordable cosmetic materials is a sure way to keep the cost of your kitchen remodel manageable. When you start tearing out walls, bumping out the exterior home footprint to gain a few feet, and moving plumbing fixtures and appliances, the cost of the remodel will jump and your dollars will be less efficiently spent.

2. Adding living space. A straightforward addition of a new living room space is typically a very good investment.

Newly added square footage generally increases your home’s value. There are certain costs that will be associated with your addition regardless of the size. New square footage will require the demolition of existing exterior walls, a new foundation, a new roof, new exterior siding and probably new windows. If you are going to incur these expenses, it’s important to get some bang for your buck. It’s important that the added room is sized so that the space can be efficiently produced.

3. Curb appeal. You have heard not to judge a book by its cover, but smart money recognizes the cover’s value. Your front elevation is more than just a first impression. It’s the only impression available to just about all of your home’s potential buyers.

The good news is that there are a number of very affordable projects that can improve curb appeal, and some more extensive improvements that can likely pay off as well. Simply cleaning out overgrown brush and making a few new planting additions to your landscape can go a long way toward improving curb appeal at a very low cost.

Repainting is another low-cost, high-impact improvement. Costlier changes such as changing out old windows or an aged entry door are things that potential buyers will notice and value. Even more extensive front-elevation remodels, such as added dormers and front porches, can prove wise from an investment standpoint.

4. Master suites. Sorry, kids. Homebuying decisions are in the hands of adults, and adults care about the environment where they sleep. Updating a master bedroom or remodeling and adding a new master suite is money well spent. The buyers will picture themselves living in their private space, and it’s of quantitative value when they like what they see.

Repeat after me: I am the master of my remodel. Perhaps you should say it again, because sadly, it’s not always so. Remodels sometimes have a tendency to develop their own inertia, as decisions lead to new dilemmas, unintended consequences and surprising outcomes. In some cases, these flights of fancy are perfectly acceptable, provided the design and completed execution truly align with the vision and budget.

But if your budget is a concern, and the wise investment of limited home improvement dollars matters, then there are a few basic guidelines you should familiarize yourself with before planning your remodel. Today we review five remodels that typically make good financial sense, providing a nice return on the investment at the time of resale — and five that don’t.

5. Bathrooms. Homebuyers notice bathrooms, and although all the bathrooms are important, a priority should be placed on the powder room and master bath, followed by a guest bathroom and any other secondary baths (the kids don’t need to know).

The same rules apply to a bathroom remodel as to the kitchen. Cosmetic changes are safer from an investment standpoint than modifications involving changed layouts or minor additions, which can result in inefficient expenses.

Remodeling Projects That Typically Offer Poor Resale Value

1. Kids’ spaces. 
If your kids have a climbing wall, for example, the fantastic addition will probably lead to hours of fun, increased strength and perhaps even a sense of accomplishment. But there is no assurance your homebuyer will feel the same way. A rock climbing wall might actually represent a negative value to a buyer who sees this space as his man cave.

2. Pools. The National Swimming Pool Foundation estimates that there are more than 10 million swimming pools in the United States. Can 10 million pool owners possibly be wrong? Backyard pools are loved by millions, and while this appreciation is well founded, they should be constructed for their many virtues that are not investment related. A pool might increase the value of your home but is unlikely to pay for itself, as some buyers will perceive the pool as a negative maintenance expense.

3. Wine rooms. Some of the coolest remodels are the least savvy from an investment perspective. A wine room wouldn’t appeal to someone who does not love wine, for example. Original designs rarely appeal to everyone, so when adding spaces to a home you know you will sell, consider how personal it is and if others will feel as strongly as you do.

4. Removing features. Do not remove features for investment reasons. If you never use the fireplace in your basement, removing it might make perfect sense to you and your family. Just make sure you understand that the next homeowner might wish it were still there, and the money you spent demolishing the fireplace and reworking the space will not be reclaimed.

5. Minor additions. Adding a few square feet — say, to expand a bathroom or secondary bedroom — is rarely money well spent. The reason is simple. If you bump out a bedroom wall by a few feet, you might make that bedroom much more comfortable. That benefit alone might make it worthwhile in your circumstance. But the cost of the added elements, including foundation, roof, framing and drywall, will result in only a small gain in square footage. Say your 2,400-square-foot, three-bedroom home becomes a three-bedroom home with 2,440 square feet. It’s unlikely that you’ll recover the cost of the addition.

The Bottom Line

This exercise is not intended to dissuade you from pursuing a specific remodeling idea. The enjoyment and functionality get from a new space may make the project worthwhile even if it doesn’t provide good resale value. The decision is yours to make. Just be sure you make it with a full understanding of the investment value for every dollar you spend.

Note from Candis C.: As a common rule of thumb, I traditionally advise my clients not to do ANY remodeling for resale. There are some instances where some updates would be required to obtain market value for a home that hasn’t been modified in more than 10-20 years. But typically, I tell my sellers to refresh the spaces (declutter, paint, replace cabinet handles and the like), but save their money to customize their next home, not update someone else’s new one!

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Jeff & Susie B.
Jeff & Susie B.
Clearwater, FL
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Candis is a real go-getter! She stayed on top of the listing and sale of our home. She was very quick to respond to questions and had up-to-date info on any details we had our attention on. We don't know how she could have done her job any better! She was really good when it came to negotiations and closing our sale. She did what it took to get our sale completed. You will be pleased with her personality and performance handling your transaction.
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St. Pete, FL
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Candis was honestly a great Realtor! We were moving from out of state, and she gave us virtual tours of each property. She paid attention to details like the smell of each home. She was always punctual and even sent us helpful reminders to guide us through the move-in process. It would have been impossible for us to make the move without her help!
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Port Richey & Pinellas Park, FL
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Candis went beyond my expectations. She was cheerful and found a place for me to move to within my tight budget in less than a month. She really cares about her clients - she even helped me find a place overnight to stay and provided transportation as I don't drive. I was so grateful to have Candis as my Realtor.
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St. Pete, FL
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Candis worked so hard for us. She was always on time, prepared, and knowledgeable. She was also kind and patient with her reminders and support. I can't recommend her highly enough! I had an ideal experience!
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Tiffanie R.
Largo, FL
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Candis is a highly experienced and knowledgeable realtor. She prides herself on knowing the market, neighborhoods, and the larger view of real estate trends across the country. Her insights, professionalism, and excellent communication skills translate to an interaction that is easy, streamlined, efficient, and effective. I recommend Candis 100%!
Michelle F.
Michelle F.
Largo, FL
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Absolutely amazing. Was very helpful and willing to answer all my questions to the best of her knowledge. Came back to me with more information if she didn’t have the best answers available.
Janet D.
Janet D.
Largo, FL
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Candis was very hands on and always available. She got our home sold and was a huge help in my relocation. We had lived in the same house for 29 years and were unsure how to proceed in our sale. Candis knew what she was doing and steered us in the right direction. She was always thorough in explaining each and every step.
W. Pope
W. Pope
Clearwater, FL
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My buying experience started rough with an agent who did nothing for me. Then I found Candis. I could tell the difference! She immediately began working hard for me. She is a very educated, helpful Realtor who was always a step ahead! She has a great personality and I recommend her to everyone! Even in a tough market, she made my dream of buying my first home a reality and we closed within 30 days!
Joe C.
Joe C.
St. Petersburg, FL
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Thanks to Candis for helping me find a place to call home. In what can be a very stressful experience, Candis always kept things positive and stayed on track towards accomplishing the goal. I highly recommend her for anyone trying to find the right property. I appreciated all of her market insight and creative ideas for making this property more of a home!
Ashleigh & James
Ashleigh & James
Largo, FL
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Candis helped my boyfriend and I purchase our first home. She made the process so efficient and easy that we never stressed about a thing! She is extremely knowledgeable and was always available to answer my questions. She is very responsive and willing to assist whenever needed. The entire process from Pre-approval to Closing was seamless and I wouldn’t want to go through it with any other REALTOR!
Tasha Z.
Tasha Z.
Largo, FL
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Candis went above and beyond to help me secure my new home purchase. There were many hiccups we encountered (at no fault of Candis). She worked hard to be an advocate for me through the entire process, even after closing. 10/10 would highly recommend. Working with Candis was like house shopping with a good friend!
Kim C.
Kim C.
Holiday, FL
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It was great working with Candis. She really cares about her clients and what they want in a home. Her professionalism is top notch.
Tina P.
Tina P.
Clearwater, FL
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Candis has a very happy personality that is so refreshing! If we had questions, she was there to answer. And she worked well with our loan team! In this extremely difficult housing market, Candis kept us positive and patient and we finally got an offer accepted on our first home! If you are looking for a realtor, Candis is the perfect one!
T. Reynolds
T. Reynolds
Largo, FL
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Candis will exceed your expectations. She is personally committed to helping people with extreme professionalism. This combination results in a realtor who anticipates your needs and provides solutions, goes 'above and beyond' normal communication, and executes on your behalf with diligence, care, and expediency. I couldn't recommend her more!
Charlotte B.
Charlotte B.
Largo, FL
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We were moving from CA to FL and Candis made house search over the next year so easy. All we had to do was tell her what we were looking for and she did all the work! She made us feel like family and went above and beyond to help find our perfect house. Candis truly is an upbeat agent who listened to our needs and wants while her fun and positive attitude made her a joy to work with. And her honesty is refreshing.
Paul & Barb L.
Paul & Barb L.
Largo, FL
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We connected with Candis when we visited open house. It was our lucky break! She never made us a feel like just a commission, nor was she impatient as we dragged out the process. She took the time to understand our wants and provided insight, opinion and reassurance throughout the process. Her experience and knowledge were very helpful and she was patient with our many changes in direction. She exceeded our expectations!
Vicki & Daryl H.
Vicki & Daryl H.
Harbor Bluffs, FL
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Candis Carmichael is a fantastic realtor. Her positive outlook paired with her professionalism is a great combination! She is smart, experienced and knowledgeable. She was in constant contact with us and always returned emails, text messages or phone calls in a prompt manner. My husband and I would recommend Candis whether you are buying or selling your home.
Ron & Charlotte VB
Ron & Charlotte VB
Largo, FL
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REALTOR Candis is a true professional Realtor. She listens to your wants and needs, then goes out to find what you asked for. She has local knowledge of all areas (which helped with our relocation from out of State). Candis responds to all phone call and text messages within a short amount of time.
Melody H.
Melody H.
Pinellas Park, FL
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REALTOR Candis is a consummate professional who guides you every step of the way and beyond the sale. She is detailed, personable and always your champion. I can't say enough about REALTOR Candis and would whole-heartedly recommend her to anyone seeking to sell or buy a home.
Kim & Ray L.
Kim & Ray L.
Largo, FL
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She is a great realtor! She listens and truly wants to help people find their forever homes. She's smart and a go-getter and we greatly appreciate everything she did to help us quickly find and buy our new home. She thoroughly explained everything during the process, answered our questions and gave great suggestions. If you want someone who cares and will truly work for you, Candis is who you need! She really is awesome!
Theresa & Sean O.
Theresa & Sean O.
Pinellas Park, FL
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Candis was a such joy to work with! She found us our perfect vacation home and worked hard to get everything finalized. Thank you for your dedication and constant updates during this long distance purchase.
Jane & Dave H.
Jane & Dave H.
St. Petersburg, FL
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We appreciate that REALTOR Candis was genuinely concerned with helping us find a home. We had been blown off by other agents, owners and managers who who kept stringing us along only to tell us they sold or rented out the house. Thank you!
Daryl H.
Daryl H.
Spring Hill, FL
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Candis was recommended and after meeting with her, we were quickly impressed with her professional manner and knowledge of the areas where we were looking to buy.
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