We have previously written about the remodeling projects that bring the highest ROIs for your investment dollars. Some of these projects were small kitchen and bathroom remodel that bring the 100% or higher returns.
However, we wanted to write about some of the remodeling projects that are have the lowest ROI. Here are the top 5 remodeling projects with the highest ROI:
Home Office : In late 1980s, my husband was offered an option to set up a home office when he was working at HP. And we ended up using one of the bedrooms for his work. However, aaccording to Bankrate, you can spend around $28,000 for a new home office, but you’ll earn less than $14,000 of this cost back when you sell your home. That’s only a 28% return on investment which is not a good return compared to a small kitchen remodel.
Over-the-Top: Creating over-the-top and unorthodox spaces in your home is not a wise investment. Using quality materials is always the best way to go but there’s fine line between classy and over the top. Most buyers want something that looks nice and will last a long time. However, ornate or luxurious designs can be a deterrent in many cases. These kind of remodeling projects only return 56-58% return on your investment.
Poor Construction: Most of us have seen DYI projects that show very poorly and leaves very poor 1st impression. Some of these are poorly planned Tile work in bathrooms where the Tiles that non-alighed and crooked. You should hire a qualified and well skilled contractor for these kind of finish projects.
Specialized Rooms: We are not talking about granny units or detached studios here. But a poorly planning basement that are not code complaint will not only be a poor investment, but it might also become an inhibitor in selling your home.
Roofing: Adding new roofing to your home returns less than 60% of the investment according to Forbes magazine.
Bottom line is that you need to choose your remodeling projects carefully to avoid losing money when you sell your home.
But it’s advisable to develop an After Repair Value before you start your remodeling efforts. You can get an eBook that will include Rental Survey in your zip code and Contact Us if you need help.