Thursday, January 26, 2017

Beware: Five Renovations that don't Increase Home Appraisal Value

KEY WEST, Fla. - Jan. 26, 2017 - PRLog -- Per Fred Mullins, Top Producing Member of Team Mullins at Coldwell Banker Schmitt in Key West and owner of,"Before getting to the five renovations that don't increase home appraisal value, let's look at the biggest home improvements with substantial return on investment. Coming in at number five is new vinyl siding, snagging an 83 percent return.

Install a new garage door and receive 87 percent back. Put down new hardwood floors for a 91 percent ROI. Upgrade the insulation and enjoy a return of 95 percent. Install a new roof and you'll love its huge return of 105 percent.

But, there are five renovations that don't increase home appraisal value and you obviously should avoid them completely. These make it more difficult to sell a house, as well as wasting money.

Here are the five renovations that don't increase home appraisal value:

1. A swimming pool. Sure, a swimming pool is a welcome amenity; or is it? The truth of the matter is, swimming pools introduce a number of factors. For instance, buyers with small children might see it as a safety issue, as well as elderly buyers. Insurance costs will increase, also. At the very least, there are maintenance concerns.

2. Luxurious landscaping. While elaborate landscaping definitely improves a property's curb appeal, it's usually just seen as a giant maintenance headache for buyers. Instead of going all out, upgrade with a modest but beautiful landscape. This will help to bolster a property's value.

3. Over-improving for the neighborhood. If you want more space, you might consider adding on a second story. But, if the majority of other houses in the neighborhood don't aren't two story, it's going to have a negative impact on the home's value.

4. Upscale home upgrades. Big time, high end upgrades will improve the style and even the function of a home, but these will also lower its value or just not return very much on investment. It's best not to go all out in practically every home improvement aspect.

5. Unseen home improvements. While a house might need new plumbing or electrical wiring, these are unseen improvements and do not increase home appraisal value.

Another renovation that does not increase home appraisal value is a master bedroom addition or remodel. Although it's a wonderful creature comfort, don't expect it to have much impact on your home's value.

Fred Mullins, P.A. holds an MBA, B.S., real estate license United States Coast Guard Master Captain's license and commercial pilot's license. With over 20years of cross functional experience in real estate, international asset management and construction management, Fred's experience places him as one of the top real estate professionals in the Florida Keys.For help with buying or selling Real Estate in the Lower Florida Keys,see

The Mullins Team

No comments: