1. Adding an in-ground swimming pool
Homeowners who add a pool dream of hot summer days splashing around and soaking up the sun. In the end, however, many pool owners feel like they just installed a money pit.
For one thing, pools have the lowest ROI of any outdoor upgrade, with homeowners typically recovering just 56% of their investment, according to a 2023 survey by the National Association of Realtors.
Pools also cause home insurance premiums to increase by around $50 annually and cost around $1,200 to $1,800 per year to maintain — on top of which, you should budget around $3,000 to $5,000 for repairs and added utility costs. That's a lot of extra expense, especially if you don't use your pool much once your kids grow up or once the novelty wears off.
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Read More2. Installing playground equipment
Playground equipment seems like a necessity when you have small children, but it's another "upgrade" many homeowners end up regretting.
Depending on the structure, adding a playset to your backyard costs anywhere from a few hundred dollars to tens of thousands. While there's no definitive data on the ROI of swing sets, most realtors agree that while a well-maintained playset can add some value, older or poorly made sets decrease your home's worth.
Other problems with play equipment include higher home insurance costs — or added risk if your swingset is excluded from coverage — as well as ongoing costs of playground maintenance. Of course, your kids will eventually grow up and outgrow the playset, and it may sit there taking up space unless you take it down.
3. Major high-end appliances
When you shop for appliances, that fancy new fridge or the professional-grade stove may have you imagining you'll become the next Julia Child. Unfortunately, once they’re in your home, you might feel like you've just burned your money.
Overall, the ROI on replacing appliances is around 60% to 80%. However, if you're spending extra on upgraded appliances, you may not get that back, as many experts say luxury brands don't add much value compared to standard alternatives. After all, how many homebuyers know the difference between a $400 and a $4,000 oven and are willing to pay the added premium?
Costlier appliances may also be more difficult and expensive to repair if they require specialized parts or if your local repairman is unfamiliar with their intricacies.
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Skip the waitlist4. Free-standing bathtubs
If you're dreaming of soaking in a big free-standing tub, your dream might come crashing down as you see your money going down the drain.
Many homeowners are removing tubs, and the consensus is that showers add more value than tubs. Tubs can be hard to clean, expensive, and time-consuming to fill. And, like pools, they often aren't used much once the novelty is gone.
5. Garage-to-living space conversions
Finally, a garage-to-living space conversion is often viewed favorably when making remodeling plans because it costs much less than a stand-alone addition. Unfortunately, the ROI is only around 80%, and that's only if the conversion is done well.
Further, in many parts of the country — including rural areas where equipment is stored and urban areas where parking is scarce — homeowners prefer the parking and storage a garage offers.
If you're considering any of these upgrades, this list doesn't necessarily mean you shouldn't move forward. Ultimately, your home is more than just a financial investment. If you plan to stay for many years and can afford it, It makes sense to personalize your space.
Just be sure to take the time to consider the long-term investment, ongoing costs, and value the upgrade will add before you call your builder.
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