Why Some Home Renovations Don't Make Sense

I love to watch home renovation shows. Each week, I record hours of these shows to watch during my downtime. I like to get ideas and to keep up with the current trends. Even though these shows are fun and even educational, the truth is not all renovations are created equal.

As a Realtor, I often wonder whether these renovations truly impact the market value of the home. Since I have no way of knowing the address of the renovation or the actual cost involved, I can only guess based on what‘s presented during the course of the show. And often, I conclude that the answer is “no.” No matter how wonderfully and expensively updated a home is, its value often is more heavily dictated by neighboring properties.

I’ve worked with many homeowners who, even without the help of House Crashers, achieved some amazing home make overs. They invested thousands of dollars in a home, that for one reason or another, they need to leave, and they’re disappointed to discover they’re not likely to recover the full cost of their investment. Despite what Love It or List It would have you believe, a $50,000 kitchen makeover in a $150,000 house isn’t likely to increase the value of a home to $250,000, as Love or List often proclaims, if surrounding property values don’t support it. The home certainly is more desirable to buyers, but desirability doesn't always translate to significantly higher market value.

Does that mean a homeowner should never renovate or update their home? Absolutely not! Sometimes updating and renovating are necessary to maintain market value along with livability. But those updates and renovations need to make sense in context of the property value. A moderately priced home calls for good quality, but moderately priced materials. A luxury home calls for equally appropriate materials.

Livability, comfort and self-expression are important things to consider in home renovations, but home sellers do need to set expectations of their renovations when it comes time to sell.