When preparing to sell a home, it’s easy to assume that more renovations mean a higher sale price. However, over-improving your home can actually backfire, costing you time and money without increasing value. If you’re looking for smart tips for selling your house, start by knowing which projects aren’t worth the effort. Here are six home updates and improvements you can safely skip to avoid wasting time, money, and energy.
The Risk of Over-Improvement
Over-improving a home can make it harder to sell, especially if your home becomes the most expensive one on the block. When a house is priced significantly above comparable properties, buyers want to know the reason. If costly renovations push the price beyond what the market will bear, the home may sit because buyers don’t see enough room for future value or appreciation to justify paying more. If they can't build equity, it's likely not worth their investment.
To avoid this, focus your renovations on areas that historically provide a solid return on investment (ROI), such as kitchen and bathroom updates. Focus on clean, simple designs using construction materials that are easy to replace or maintain if needed.
Before undertaking any renovations, it’s important to know your home’s current market value. And if you're selling as a FSBO (For Sale By Owner), online tools can give you a rough estimate, but one of the best for sale by owner tips is consulting with a local real estate agent to estimate your home’s value. A local professional can provide the most accurate and up-to-date information, especially when determining how your property holds up to the competition.
Understanding your home’s value helps you decide which upgrades will enhance your family’s enjoyment and have a good chance of paying for themselves when you sell.
Understanding the Market
Become familiar with comparable homes in your area to avoid over-improving your property. When you’re looking at properties nearby, consider:
- Features: Square footage, number of bedrooms, and bathrooms.
- Age and condition: Compare homes built within a few years of your own. "Condition" includes more than fresh paint. HVAC and roof age, foundation cracks, water damage, and pest history all matter.
- Listing price vs. sale price: Don’t make assumptions about asking prices. Investigate what comparable homes actually sold for.
- Amenities: Note what your home has compared to others, like a swimming pool, gourmet kitchen, hot tub, storage shed, finished basement, addition, high-efficiency windows, and new roof.
- Location: Not just neighborhood, but specific positioning. Homes on golf courses or with views generally fetch more than those backed by a cement wall, even if your home is in better condition.
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You don't need to match every feature. Use these comparisons to estimate your home’s value and expected time on the market. From there, you can decide what upgrades make sense and which to skip. These kinds of insights are some of the most valuable tips for selling your house efficiently.
When researching comparable homes, focus on a small, recent, and consistent pool. The market fluctuates, so avoid looking too far back.
Also, consider the overall market:
- In a seller’s market, you may need fewer upgrades.
- In a buyer’s market, more renovations may be necessary to sell.
Skip these updates when selling your home.
1. A High-End Kitchen Remodel
While a move-in-ready home is worth more than a fixer-upper, kitchen overhauls aren’t always necessary.
Many buyers today prefer to personalize their kitchens themselves. They appreciate the chance to make the space their own, sometimes even using their home loan to cover remodeling costs.
According to the 2024 Cost vs. Value Report, a minor kitchen remodel ranks among the top home projects with the highest return on investment, but a full gut remodel rarely pays for itself. Most of the best ROI projects are exterior upgrades. Though be careful, as extensive landscaping typically does not match its price in resale value.
2. Partial Room Updates
If you’re taking on a kitchen or other room remodel, don’t focus only on one aspect. You have to go big or go home, as they say. Installing quartz countertops will highlight the outdated cabinets and linoleum flooring that you left untouched.
A coherent, even if outdated, space will likely look more appealing than a disjointed, slightly newer one.
3. Finishing the Basement
Finished basements add more room, but many buyers prefer tailoring the space themselves.
If you finish the basement before listing, keep it simple. Avoid themed renovations, like in-law suites, bars, or home theaters. Let buyers imagine their own use of the space.
4. Swimming Pool
Adding a swimming pool might seem like a great way to increase your home’s value or match other listings in your area, but the return on investment is usually low. Pools are expensive to install and maintain, and many home buyers are hesitant to commit to the added responsibility of upkeep and higher insurance costs.
Before investing in a pool solely to boost your home’s resale value, consider whether buyers in your market desire one and if you can recoup the expense when you sell.
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5. Space Conversions
Converting your garage into a gym or extra living space may sound appealing, but many buyers prioritize having a functional garage for parking and storage. Altering this space can reduce your home’s appeal to some buyers.
If you decide to convert it, make sure that future homeowners can easily (and affordably) reverse it.
6. Replacing a bedroom
Converting a bedroom into a home office or another designated space can hurt your home’s resale value. Bedrooms are often a key selling point. For example, a three-bedroom home generally sells better than a two-bedroom one, regardless of the size of your closet or bathroom.
If you set up a home office in what was originally a bedroom, it’s best to list the property with the maximum number of bedrooms to attract more buyers and let them imagine how they might use the space.
Before renovating your property to sell, take time to think strategically. Study your local market, understand what buyers truly value, and avoid costly updates that won’t deliver a high return. By skipping these six common but often unnecessary upgrades, you can save yourself both stress and money while still showcasing your home in the best possible light.
Get even more home selling tips with our free resource below, A Guide to Selling Your Home.
