If you’re planning to sell your home, be strategic about the improvements you undertake. Choose updates that appeal to buyers and help you maximize your return on investment (ROI). With that in mind, here are three home improvement projects with a low ROI.
1. Swimming Pools
Installing an in-ground swimming pool is an expensive renovation. The cost of materials and installation can range from $20,000 to $100,000, depending on the size and features of the pool. The return on investment (ROI) for a swimming pool is low compared to other home improvement projects.
There are several reasons swimming pools have such a low ROI. They’re considered a luxury item, and most homeowners are not shopping for a home with a pool. Swimming pools are a significant investment and come with various ongoing costs, such as chemicals, insurance, heating, and repairs. Homebuyers may not be excited by the constant maintenance a pool requires, and potential buyers with small children may even see a backyard pool as a safety hazard.
2. High-End Landscaping Projects Often Have a Low ROI
Homeowners who install high-end landscaping on their property may not see a high ROI. Although an attractive landscape can add curb appeal and value to a home, the costs associated with installing and maintaining exotic plants can be significant.
The cost of installing the landscaping will vary based on the scope of the project. Maintenance can also be expensive, as high-end landscapes often require more attention regarding watering, fertilizing, and pruning. Exotic plants are costly to purchase. They need special care and attention to thrive because they’re not well suited to your local climate and soil conditions.
The expenses associated with installation and maintenance may not make it a wise investment for a homeowner looking to sell the property. A buyer may not have the time and resources to handle the upkeep of high-end landscaping.
3. An In-Home Gym is a Project with a Low ROI
An in-home gym may be enjoyable for your family. However, this project has a low ROI for several reasons. The initial investment is high. You must purchase equipment and may need to build an addition to your home. If you’re creating a gym, it is often necessary to reinforce the flooring to support the weight of the equipment. Potential buyers could see the gym as undesirable and have to budget for renovations to update the space for their own use.
While there are many home improvement projects you can tackle to increase your home’s value, not all offer a good return on investment. If listing your property on the market, choose updates carefully to get the most profit from the sale.