Luxury Features with Low Re-Sale Value
Luxury features can easily make you fall in love with a home, from jetted tubs to a chef’s kitchen, open concepts, and oversized windows that boast panoramic views, there are many home features to love. Unfortunately, not all of these features provide great re-sale value, and many luxury features can cause for depreciation rather than appreciation. So, what luxury features tend to have the lowest re-sale value?
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While swimming pools will generally boost the list price of a home, it won’t raise the price enough to justify the cost. Now more than ever, having a pool installed is exceptionally expensive, and in most cases, the list price will only be increased by roughly $30k. For many people, if the pool takes up the majority of the yard, then this may decrease the list price further as many buyers who are purchasing a pool home still want a good amount of yard space to enjoy meaning that small lots that have pools added will see a drastic loss vs. a high return on investment.
You’ll often see large master bedrooms, or owner’s suites in luxury home fully equipped with a great nook for reading, a couch or sofa chair to enjoy your morning coffee, etc. While it may look nice and luxurious in theory, many will see this as wasted space. While oversized bedrooms were once coveted in the luxury market, today’s buyers would prefer more usable space instead such as a home office, guest bedroom, larger living rooms for entertaining, etc.
You’ll often hear that kitchens and bathrooms are two areas that help sell homes, and while this isn’t necessarily false, some bathroom upgrades may not increase your home’s value, and thus re-sale value as much as you may think, if at all. One of the biggest things that tends to hurt your home’s value is bathtubs and showers that draw too much water. In today’s market many buyers are all about energy efficiency, green homes, and water saving features which in turn, means that the double headed walk-in shower, or oversized jetted tub, might not seem as luxurious as it would have in years past and can actually hurt your home’s re-sale value.
When it comes to upgrading your home with luxury features, you always want to consider how each upgrade will impact your home’s value. If you plan on living in the home long-term, then you may not be as concerned with value decreasing upgrades, however, if you plan on selling in the next few years, boosting your value is key.
If you’re currently searching for a new home, are ready to sell your home and need a qualified seller’s agent to assist you, or if you have any further questions regarding Texas Real Estate, please feel free to contact our office at any time.