Adding a Swimming Pool, Secured Outdoor Spaces, and Energy-Efficient Products
By Sarah Berryman
As a homeowner, the prospect of renovating your living space can be both exhilarating and daunting. Knowing which renovations will add value to your home — and which might detract from it — is crucial, especially when considering the long-term impact on resale value. Recently, I had the pleasure of speaking with Alex Shekhtman, an experienced mortgage broker and founder of LBC Mortgage, to get his insights on home renovations that could either increase or decrease a home’s value depending on the location.
Adding a Swimming Pool
“In states like Florida or Arizona, where outdoor living is a way of life, adding a pool can significantly enhance a home’s value and attract more buyers,” Alex shared. “But in colder regions where pools can only be used a few months of the year, that same addition might not only fail to add value but could also be seen as a costly burden for future buyers.”
Considering the national average price for building a pool hovers around $41,606 according to HomeAdvisor, this is no small investment. “You really need to run the numbers before making this decision,” Alex advised. “While a pool might be a fantastic addition in some areas, it may not hold the same allure in regions with harsher climates.”
Secured Outdoor Spaces
Alex was equally insightful when discussing secured outdoor spaces. “Adding a patio, an outdoor kitchen, or a deck often increases your home’s appeal because potential buyers picture themselves spending time outside year-round,” he said. “In warm climates, the outdoor space is almost as important as the indoor space.”
However, this logic doesn’t necessarily hold in regions with harsh winters. “The same outdoor enhancements might not be as valuable in a location where you can only use them a few months out of the year,” Alex noted. “It’s essential to consider the local climate and how much use these spaces will get.”
Adding Energy-Efficient Products
Switching gears, we delved into the realm of energy efficiency. “In colder climates, buyers are more interested in features that help with energy efficiency — new windows, improved insulation, and upgraded heating systems are valued because they directly affect comfort and energy bills during harsh winters,” Alex explained.
Conversely, these same energy-efficient products and renovations wouldn’t hold the same value in warmer climates where the focus would be more on enhancing outdoor spaces. “If you live in a region where keeping cool is more of a priority, then investing in air conditioning upgrades or shaded outdoor areas would be more beneficial,” he added.
The Balancing Act
Our conversation also touched on the importance of balancing personalisation with potential resale value. “It can be tempting to convert your garage into a home gym or add highly customised features, but if you’re considering selling soon, these changes can work against you,” Alex pointed out. “What you see as a unique selling point could be viewed as a renovation project by future buyers.”
For those in luxury markets, Alex advised caution with extravagant luxuries. “Buyers in high-end markets may pay a premium for chef’s kitchens and spa-like bathrooms. However, in more affordable markets, those same upgrades can be overkill and might not offer a strong return on investment.”
Understanding Your Market
Ultimately, understanding your local market is key to making wise renovation decisions. “Before deciding on a renovation, ask yourself if it adds value based on where you live,” Alex suggested. “Look into similar listings to see what features are attractive to homebuyers in your area.”
“The smartest renovations are those that align with both your local market’s expectations and the long-term trends,” he concluded. “The goal should be to strike a balance between upgrading wisely to add value to your property and avoiding the temptation to over-customize in ways that won’t yield a high return.”
In the end, home renovations are a significant investment and should be approached with careful thought and planning. Whether you’re adding a swimming pool, securing outdoor spaces, or incorporating energy-efficient products, understanding how these changes align with your local market can make all the difference in enhancing your home’s value.
Sarah Berryman
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