Watching the latest home renovation shows you might have the impression that by investing a few dollars in your home renovations, you’ll see a massive return back into your home. This isn’t fully true. First of all, you need to consider the value of the homes in your immediate area. Having the most-upscale home on the block might be nice, but it won’t necessarily increase the value, as homes generally depreciate in value over time while the land appreciates. This is called overbuilding for the neighborhood. Your home value is mostly based on square footage of your home and property, the location, the market, with the interior of the home having the least impact on value.
Renovations that don’t add value include:
- · Adding a swimming