12 Home Renovations That Will Hurt Your Home’s Value

Your home isn’t just a source of pride or a place where you can relax after a long day — it’s also an investment in your family’s future.

And while it’s natural to want to make improvements to increase your home’s resale value, some renovations will actually cost you money in the long run. Just because you see something as an improvement doesn’t mean a potential buyer will feel the same way. Find out which renovations are ones to avoid.

One common home improvement mistake is falling in love with unique or lavish light fixtures, said Alon Barzilay, founder of real estate development company Urban Conversions.

“Whether it be ceiling-mounted lights in a dining room or a hanging pendant, there is a psychological phenomenon that happens when you go to a lighting store … you’re going to pick something exciting and new instead of picking a new addition that suddenly matches the big picture,” Barzilay said.

Further, the passage of trends works against homeowners.

“Whatever is in vogue today will look dated 10 years down the road when you are ready to sell,” he said. “Simple is best. Fortunately, lighting can easily be switched out at a low cost.”

“Many buyers like to upgrade the floors in their homes,” said Bob Gordon, Realtor and blogger at Boulder Real Estate News. “Adding tile or wood can make an improvement in value — unless you get that person who wants the 1950s diner look and installs black-and-white tile. For their vision, this is the pinnacle of cool. But for a resale value, most homebuyers will see it as a distraction and something they will need to rip out.”

Instead of falling victim to tiling mistakes, consider going with a traditional white tile floor, and buy a rug with the style you’re going for, he recommended. If you don’t want to spend a fortune on a professional to replace the flooring, consider doing this home renovation yourself.

Jose Hernandez, a real estate agent with Coldwell Banker Realty in Chicago, said that eliminating and replacing a bathtub with a shower only is another renovation that can hurt your home’s value.

“While this may sound like a great option for homeowners without children, most parents prefer a bathtub, which sometimes becomes a dealbreaker for buyers with kids,” Hernandez explained.

The kitchen is often seen as the heart of a home, and it’s a project many homeowners save up for. The resale value of a major, high-end kitchen remodel is actually less than what you’ll invest in it, however.

According to Remodeling Magazine, in 2023, the national average for a major kitchen remodel was $77,939, and you could expect to recoup only about 30% of the investment.

“Adding luxury features or high-end finishes can be exciting, but if your home is suddenly much more expensive than others in the neighborhood, it can be tough to get your money back when you sell,” explained Jordan Woolf, CEO of We Buy Houses in Bama. “Buyers may balk at paying a premium for features they don’t see in surrounding homes, making your property harder to sell.”

To avoid kitchen renovation mistakes that won’t give you a return on investment, try to focus on which aspects of the kitchen are most outdated or worn. And as tempting as it might be, consider selecting mid-range appliances rather than the expensive high-end options.

Hernandez said solar panels can be purchased or leased, but many homeowners don’t understand how having a solar plan loan or lease contract will affect the sale of their homes.

For example, according to Quicken loans, if you have a solar lease contract, the buyer can either assume the contract, buy out the contract or purchase the solar panels at the price listed in the contract.

If you have a loan through a solar installer, they will often put a lien on your home’s title until the loan is paid off. If you try to sell your home before the loan is paid off, it’s likely that you’ll have to pay off the solar loan before closing because the mortgage lender for the buyer probably won’t want their client to take on an additional loan.

Thanks to improved technology, more professionals have the opportunity to work from home, and some might consider creating a dedicated home office space to get the job done. If the new office was formerly a bedroom, this could be a costly mistake.

Ryan Whitcher, founder and CEO of Harmony Home Buyers, said, “Converting a bedroom into an office may seem practical, but it reduces appeal for buyers needing more bedrooms.”

Along with removing bedroom furniture, you likely will need to add wall outlets and phone jacks — costing up to $475 — and to install new hardware, which could bring the total cost up of the conversion to $5,000, according to HomeAdvisor. If a prospective buyer would rather have the bedroom space, you spent a lot of money for nothing.

Combining two small bedrooms to create a bigger room might seem like a good idea to a young couple with no children or to empty nesters whose children have left the house. But this is a bad move if you don’t plan on staying in that home forever, said Brian Davis, real estate investor and director of education of renting resource SparkRental.

“Even small bedrooms add value to homes, as most families want children to have their own rooms but don’t mind if they’re on the small side,” he said. “In my experience, each bedroom can add about 15% to the value of a home.”

Instead of knocking down walls, try simple tricks to make your bedroom space look bigger, like lighter colors and modern, slim furniture.

Sam Gallahan, co-owner of Revolutionary Home Buyers, said he has seen firsthand how removing a closet to make room for another upgrade, such as a larger bathroom or bedroom, can hurt a home’s resale value.

“In an effort to create larger living spaces, some homeowners remove closets or built-in storage,” he said. “However, storage is a significant factor for homebuyers, and the lack of it can be a dealbreaker. Homes with ample storage are generally more desirable, so it’s wise to think twice before eliminating these features.”

Contrary to popular belief, a swimming pool renovation or addition is not the best way to add value to your home. In fact, according to HouseLogic, a swimming pool could increase a home’s value by 7% at most — and that’s only in certain circumstances.

According to a report from the National Association of Realtors, the cost of building an inground pool could reach $90,000, so there’s a significant investment involved.

“Unless you live somewhere that’s hot at least six months out of the year, pools are generally more trouble than they’re worth,” Davis said. “The only people who really want them are families with a certain age range of children, so it limits the potential buyers.”

Because of the cost to build a pool, maintenance expenses and a very minor potential value increase, a swimming pool addition simply isn’t worth it for most homeowners.

For a fitness lover, a garage-to-gym conversion might seem like a wonderful idea. To parents of a millennial who just moved back home, a garage-to-apartment conversion probably seems like a money saver. But future homebuyers might not agree.

“Converting a garage into additional living space may seem like a practical way to maximize square footage, but it can actually decrease your home’s value,” said Yosef Adde, a South Bay realtor with eXp Realty.

“Buyers often prioritize garages for parking, storage or as a workshop, and removing this feature can significantly limit your home’s appeal. In areas where garages are the norm, this conversion could make your property less competitive, leading to lower offers or extended time on the market.”

If you have an older home that you renovated to the point of removing its character, don’t expect a big return on your investment. “I’ve seen old homes where the seller completely strips the homes integrity to give a modern contemporary look, and frankly it’s gross,” said Evan Karam, owner of We Buy Casa.

“Taking away a home’s original architectural detail like crown molding, wainscoting or vintage woodwork in favor of a more modern, minimalist style can backfire,” he explained. “For buyers who love historic or unique homes, these features add character and charm, so getting rid of them can feel like a loss. Instead of seeing your home as updated, they might see it as stripped of what made it special in the first place.”

Always think twice before getting into the do-it-yourself home improvement game.

Nick Disney, a real estate investor in San Antonio, Texas, said many people take on DIY renovations, which have the potential to add value at a low cost if done correctly.

“However, the problem is that these projects often don’t turn out as expected,” he said. “People follow social media tutorials, and the results can be disappointing.”

Disney said he has encountered homes where an extra room was added.

“At first glance, this might seem like a value booster, but upon closer inspection, you notice details like missing baseboards, doors that don’t fit properly because there’s no trim, or even plumbing that’s capped off inside walls,” Disney said. “In other cases, we’ve seen half doors in the middle of kitchens or central AC units installed with ducts and electrical wires exposed throughout the house.

“The issue isn’t necessarily with the additions themselves or how well they were executed, but whether they’re something you can work with. Is it a product that you can take and move forward with? Or is it something unsafe that needs to be redone?

“Often, people start doing electrical and plumbing work on their own, but they aren’t professional electricians or plumbers. This kind of work should be done by a professional, and if you have to redo it, you need to factor in that cost. While value was intended to be added, there’s still a long way to go before it truly translates into actual added value.”

Cynthia Measom, Joel Anderson and Martin Dasko contributed to the reporting for this article.