Every homeowner must pay for routine home maintenance, such as replacing worn-out plumbing components or staining the deck, but some choose to make improvements with the intention of increasing the home’s value. We’ve detailed home renovations that will produce a positive ROI in a previous blog post. Certain projects, such as adding a family room or other functional space, can be a wise investment and easily completed with the help of a home equity line of credit. However, some home renovations may have no effect on the value of your home and effectively only be sunk costs. Here, we’ll list a few home renovations that won’t give you a return on your investment when selling your home:

Pools

Swimming pools are one of those things that may be nice to enjoy at your friend or neighbor’s house, but can be a hassle to have at your own home. Many potential homebuyers view swimming pools as dangerous, expensive to maintain and a lawsuit waiting to happen. Families with young children in particular may turn down an otherwise perfect house because of the pool. In fact, a would-be buyer’s offer may be contingent on the home seller dismantling an aboveground pool or filling in an in-ground pool.

An in-ground pool costs anywhere from $10,000 to more than $100,000, and additional yearly maintenance expenses need to be considered. That’s a significant amount of money that might never be recouped if and when the house is sold.

New Roof, Water Heater, or Furnace

These three home renovations, according to Trulia, add no monetary value. A new or extremely reliable heating and air conditioning unit is standard expected fare when buying a house. If you buy new units, don’t expect to recover your investment. This necessary part of most homes should be in the best shape possible during resale, but doesn’t usually tip the scales. A severely out of shape unit may negatively affect your price, but as long as it’s in working order, a new unit isn’t necessary.

Invisible improvements are those costly projects that you know make your house a better place to live in, but that nobody else would notice – or likely care about. A new plumbing system for instance might be necessary, but don’t expect to recover these costs when it comes time to sell. Many homebuyers simply expect these systems to be in good working order. It may be better to think of these improvements in terms of regular maintenance, and not an investment in your home’s value.

As a buyer would see it, it is nice to have a new roof. It does make the house more sellable, since buyers will not have to think about spending the money to put on a new roof, but not necessarily a reason to increase the price point. In other words, homes with up-to-date maintenance items: roofing, plumbing, electrical for example, will stand out compared to a home that does not have these updates.

Barns and Sheds

Barns and sheds are home renovations that can potentially add value to a home. If you choose to add a barn, be careful, because they can sometimes hurt the value of a home, because it could limit the number of buyers to those specifically looking for a home with a barn. The value of the barn will depend on condition and the buyer’s need for a barn. Will it be used for events? Can it produce income? Are the buyers into events and need a training facility? If not, the barn will not add much value.
When considering home renovations with the goal of increasing your home’s value, keep in mind that not all home renovations mean ROI. Be smart, do your research, and know your goals before embarking on any home renovation project.