Discover the worst renovation projects for maximizing ROI on your property in Kansas City.
Not every renovation project will benefit your bottom line. Some renovations simply aren’t worth it. Below, we will tackle some of the worst projects for adding ROI to your investment property.
Adding A Bathroom
An extra bathroom is a feature that many buyers would love, as it can add convenience and appeal to a home. However, when it comes down to making the investment, most buyers are not willing to pay the significant cost associated with adding that extra bathroom. The cost of building an additional bathroom can easily exceed $40,000, depending on the scope of the project and the quality of materials used.
While it might seem like a worthwhile upgrade, the return on investment (ROI) doesn’t always align with the initial expenditure. When it comes time to sell, you may only be able to increase the asking price of the property by around $20,000—half of what you invested in the renovation. This means that while the extra bathroom may improve the overall appeal of the home, it doesn’t necessarily provide a strong financial return, making it an expensive project for the added value.
Major Remodels
When considering ways to add value to your home for a sale, some individuals may think that completely remodeling the kitchen or bathroom is the best approach to attract buyers. While these spaces hold significance, undertaking a major renovation may not always be the most cost-effective solution. Such extensive renovations are not only pricey but can also unexpectedly uncover additional repair needs, leading to escalating costs. Unfortunately, the increased expenses might not align with the expected rise in your home’s value post-remodel. Moreover, overly personalized renovations could deter certain buyers who have differing preferences. Instead, offering a credit for repairs based on the buyer’s choice can serve as a compelling incentive for potential buyers.
Sunroom
Although the concept of a sunroom is appealing, the costs involved in adding one can be significant. Expenses such as extra insulation, construction, and ongoing maintenance can accumulate rapidly. While a sunroom can provide a delightful living space, the return on investment upon selling your home may only be a small percentage. Moreover, a sunroom could potentially raise your monthly heating and air conditioning expenses. Optimal insulation is crucial to regulate the temperature effectively in the room.
Garage Addition
Garages are a valuable addition to any home in Kansas City. Whether for parking your car or storing belongings, a garage serves various purposes. However, the investment in building a garage may not significantly increase the overall value of your property. The expenses involved in obtaining permits, purchasing materials, and constructing the garage can outweigh the potential return on investment. Instead of building a garage solely for profit, you can showcase the potential location and estimated costs of adding one as a value-add for prospective buyers.
Pool
Who doesn’t enjoy the thought of relaxing in a pool? While having a pool is wonderful, it may not significantly increase the value of your home in Kansas City. Pool maintenance can be costly and might deter some potential buyers. If the new owner desires a pool, they can always add one post-sale. In neighborhoods where pools are a sought-after feature, consider providing a visual representation, like a schematic, of how a pool could enhance your backyard. This allows buyers to envision the potential and imagine the transformation a pool could bring to the property.
When contemplating renovations for your investment property in Kansas City, it’s crucial to weigh the potential return on investment. While certain projects can enhance the property, they may not yield significant returns. Analyze the figures diligently to determine the most beneficial improvements and upgrades for your Kansas City investment property.