While perhaps the biggest perk of building a custom home is the ability to make it your own, it can also be a downfall when it comes to resale. No matter how much you love the custom home you build, it is unlikely that it will be the only or last home you ever live in. It is important to be mindful of your home’s potential resale value. Think outside the box, just not too outside. Adding original and unique ideas is a great way to make your custom house feel like home, but if you take it too far, it may decrease the potential value of your home. It is very important to balance what you want vs what a buyer may want down the road. Above all else, remember that it is your home first.
Here are some things to consider:
Choosing a larger bedroom or living space over an additional bedroom can decrease the potential resale value of your home. When it comes down to it, a good rule of thumb is the more bedrooms a house has, the higher the price it can usually command. Similarly, you want to make sure that there are plenty of closets and storage spaces in your home. As your family grows and changes, more and more keepsakes may start popping up and you will be thankful for the extra space!
Be cautious of the overuse of wallpaper. Wallpaper can be removed; however removing it can be a difficult endeavor – especially when there is a multitude of it all throughout the home. This caution goes with overdoing any finish in your home such as textured walls and ceilings. Trends change, and once you reach the length of time in your home where redecorating becomes an option, remember it is much easier to change a wall color than to fight with wallpaper.
Tile requires effort and money to replace which can run the risk of decreasing the value of your home. Quirky tile can be a fun and personalized addition to your home, but perhaps going with a traditional tile and adding an accent rug that captures the style you are looking for may be the safer route.
Perhaps a more surprising warning is to avoid a high-end kitchen. Oddly enough, being the “heart of the home” doesn’t mean you will get your return on investment in the kitchen. The resale value of a high-end kitchen is actually less than the value you will put into it. Similarly, luxury bathrooms have the same downfall. An upgraded bathroom will add value to your home, but it is easy to get carried away and reach the point of diminishing returns when it comes to luxury. Instead of choosing an over the top whirlpool tubs that are hard to clean and are difficult for some people to climb into, consider a more trending walk-in shower.
Another one to be weary of is built-in high-end electronics. A home theatre is perfect for any movie buff, however customized and built in electronics that take up space in an otherwise “open opportunity” room can be off-putting to potential buyers and lower your homes resale value. Something to consider here is the ever changing technology world. Even if you do stay in your new home, it is unlikely current technology will remain the same. Try to gear your focus towards multi-purpose rooms, that way your home can grow and change with you.
Unless you live somewhere that is warm at least six months out of the year, adding a pool to your home may be more trouble than its worth in the long run. Due to the cost to build, maintenance expenses and very minor potential value increase, a pool addition simply is not worth it for most homeowners.
A generic rule of thumb is this: the more personalized the addition is, the more likely it will devalue your home’s resale value. That is not to say you should not make your custom home just the way you want it, it is just to encourage you to weigh the pros and cons of each personalized change or addition you would like to make.