7 Home Renovations that Offer the Worst Return on Investment

7 Home Renovations that Offer the Worst Return on Investment

Home improvements can make life more easier and comfortable at home.

However, there are additions that are not as rewarding when taking into consideration the improvement’s return on investment (ROI). Simply put, there are home improvement projects that cost more to complete than they will pay out in terms of equity.

Here are examples of home renovations that offer the worst ROI:


Swimming Pool

Swimming pools are expensive to put in and they cost a lot of money in terms of maintenance especially if you live in cooler climates. Aside from filters and heating there are other expenses like pH balancing or winterizing your pool. Unless you live in a humid environment, you’re only going to get around 4 months of pool-use. Also, you’re most likely recoup only around 30% of your investment after you’ve deducted your maintenance cost.



Yes, we know that a sound roof is essential to all homeowners; after all who would want to get wet or snowed in? However, since reroofing is a must it does not increase the value of your property. For example, you need to reroof your asphalt shingle roofing and need to add a layer of different shingle type. Not only is this risky, homeowners generally recoup less than 10% of the cost depending on the shingle type. Instead of waiting for your roof to deteriorate, homeowners should focus on keeping the current roof in shape and up to state standards.


Adding A Wet Bar

Although the idea of having a wet bar to quench your thirst or entertain more easily sounds enticing, it does not appeal to everybody. Young families for example, do not need this addition to the house so it will not make an impression on them.

Instead of a wet bar, consider doing small improvements for your kitchen area. You can upgrade appliances to brand new stainless steel which can add more appeal especially when you decide to resell your house.


Remodeling Home Office

If you’re worried that your home office is out of shape, minor work like tidying up or a paint job can do wonders for your space. Completely remodeling it won’t increase your home value. Remodeling your home office equates to 50% recovery cost so, it’s better repaint the space rather than knocking down walls.


Adding A Sunroom

A sunroom sounds decadent, but is actually expensive and more of a bother especially if you live in humid areas. A sunroom lets the sun in so you also need to install additional air conditioning. According to research, adding a sunroom costs around $8,700 and $23,000 and homeowners will only recover approximately 49% of their investment.


Additional Bathroom

It can cost a lot to add another bathroom to your house. You need to install additional electric wires, flooring, plumbing and structural changes. This type of home improvement can sometimes cost between $20,000 and $40,000 for a basic bathroom and somewhere upwards of $70,000 for a top-of-the line addition. This is a lot of money to spend on an additional bathroom and could be spent remodeling your existing bathroom to fit to your needs.


Installing New Decking

The idea of spending more time outdoors sound appealing to some homeowners, but the idea of new decking will not be enticing to many home buyers. According to sources, new composite decking only has a 65% return on investment while wood decking averages around 75%.


Changing something at home to make it look better is usually a good idea. However, aesthetics should not be the only consideration when you’re thinking about home renovations. You should always think about how these changes will affect your home value and return on investment before taking the plunge. Looking for more real estate tips? Learn more here.

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