Top Ten Mistakes People Make When Remodeling

Top Ten Mistakes People Make When Remodeling

Did you know that some common home remodeling choices could cost you thousands of dollars because you've lessened the value of your home? I'm serious. I've seen it. I've seen people lose ten, 50, or $100,000 because of the remodeling choices they have made. Today, I'm going to give you the top ten home remodeling mistakes that people make that cost them the most amount of money when they go to sell their home.

Hey, it's me, Kati, and I've sold almost a half a billion dollars in real estate. Everything I talk about in my videos is based on real-life stories and real information because I have lived it, I know it. I've worked with thousands of people out there. And today I'm going to tell you the top ten mistakes that people make when remodeling their homes, and which ones are going to cost the most in terms of reduction in value when they go to sell their homes.

Many people love what they do in their homes. They love the idea of creating a space where they want to live, and I love that idea too. But the real issue is when I sit down with somebody and they say, "We've done all these amazing upgrades," I'm thinking, "Well, those amazing upgrades are not actually going to get you any return when you go to sell."

If you're thinking you are remodeling something to get all of that money back out when you sell, it's not going to happen. It really will not happen. You have to make sure that you're doing this thoughtfully. Now, again, if you do not care about the return when you go to sell, don't worry, you don't need this article. But if you want to understand if the remodeling you're going to be doing adds value, stick around until the end.

10. Removing Closets

One of the top mistakes people make when they remodel is removing closets in their homes. While this doesn't happen often, when it does, it can be a big problem. For example, I had a house that didn't have an entryway closet. Some people might not care, but potential buyers were left wondering where they would put their coats or their guests' coats. It's a small thing, but removing a closet can be a deal-breaker for some buyers.

9. DIY Projects Gone Wrong

Not getting professional help for important projects is another big mistake. While DIY can save money, a poor job can end up costing more in the long run. When potential buyers see shoddy paint jobs, poorly laid tile, or other subpar work, they see additional expenses and hassle. It’s better to hire a professional for critical tasks to ensure the job is done right.

8. Over-Personalized Designs

Choosing designs that fit your personal taste but don’t have broad appeal can hurt resale value. For example, I saw a house with a very specific modern design, including purple lights and unique marble choices. While it might look great to the homeowner, potential buyers could see it as extra work to change. Over-personalization can turn off buyers, so it’s better to choose more neutral and widely appealing designs.

7. Installing Carpet

Installing new carpet, especially in bedrooms, is often not a good investment. Many buyers prefer hardwood floors and might view carpet, especially old or used carpet, as a negative. While replacing old carpet might seem like a good idea, it’s often better to clean it or replace it with hardwood or high-quality laminate flooring that has broader appeal.

6. Adding Wallpaper

While wallpaper can be beautiful and trendy, it’s very personal. Buyers might not share your taste and will see it as something they need to remove, which is expensive and labor-intensive. Neutral paint is often a safer choice if you're planning to sell in the near future.

5. Overdoing Landscaping

Spending a lot of money on landscaping can be a mistake. While good landscaping can make your home sell faster, you won’t get back what you put into it dollar-for-dollar. For instance, I saw a house with $250,000 worth of landscaping. While it looked great, the owners added that amount to their asking price, which didn’t align with buyer expectations. Invest in landscaping for your enjoyment, not as an investment expecting full return.

4. Luxury Overload

Installing super high-end features doesn’t guarantee a return on investment. For example, importing custom tiles from Italy might seem like a great idea, but by the time you sell, they could be dated. If you’re remodeling for yourself, enjoy it, but don’t expect future buyers to value it as much as you did.

3. Highly Specific Rooms or Features

Converting a bedroom into a sauna, a home gym, or a highly specific room can be a mistake. While these features might be great for you, they can be a turn-off for potential buyers who would rather have a bedroom. These conversions often require significant money to revert back to their original purpose, which most buyers aren’t willing to do.

2. Converting Garages into Living Space

Turning a garage into a living space can severely limit your buyer pool. Many people want a garage for storage, cars, or a workshop. Removing it can be a huge drawback and can reduce the value of your home significantly. If buyers have to convert it back, it’s a significant cost they might not want to take on.

1. Reducing the Number of Bedrooms

The biggest mistake you can make is reducing the number of bedrooms. Bedrooms add significant value to a home. For instance, converting a four-bedroom home into a two-bedroom home might create a luxurious master suite, but it eliminates potential buyers who need three or four bedrooms. This can drastically reduce your home’s appeal and market value.

Before you start your remodeling project, think about how it will affect your home’s resale value. If you need advice, bring in a real estate agent or a professional stager early in the process. They can help you make choices that will appeal to future buyers and ensure that your investment is a smart one.

Remember, if you’re doing it for your enjoyment, go for it. But if you’re planning to sell, think twice about these common mistakes. If you have any questions or need recommendations, feel free to reach out. Happy remodeling!