Home Selling Mistakes: 12 Costly Renovations Homeowners Should Never Do Before Listing

“house for sale by owner” by Images_of_Money is licensed under CC BY 2.0

Embarking on the journey of selling your home often brings with it a powerful impulse to enhance every corner, addressing imperfections and upgrading your property to its fullest potential. It’s a natural desire to want your home to stand out in a competitive market, especially in vibrant areas where homes can move quickly, such as Los Angeles, where new listings frequently appear and homes typically receive multiple offers. However, it’s a critical error to assume that every improvement project will automatically translate into increased resale value.

The data reveals a clear picture: many homeowners are investing significantly in their properties, with the average American household spending $9,322 on home improvement projects in 2024, according to Angi’s annual State of Home Spending report. Yet, this substantial investment doesn’t always guarantee a return. The key takeaway here is profoundly simple yet frequently overlooked: not every home renovation project will increase the resale value of a home. Before you commit time, effort, and finances to a new feature, a crucial question must be asked: will this project genuinely pay itself off by attracting prospective buyers and securing a better sale price?

Understanding which renovations actively deter buyers or simply fail to generate a positive return on investment is paramount. This insight can help you avoid costly mistakes, prevent unnecessary delays in your sale, and ensure that your efforts are directed towards truly value-adding improvements. Let’s explore some common home improvement projects that, surprisingly, could decrease the value of your home, starting with the first six crucial items homeowners should think twice about before tackling.

“Ghetto Blaster and Sixties / Seventies Floral Print Wallpaper – Brian Eno Speaker Flowers Sound Installation at Marlborough House” by Dominic’s pics is licensed under CC BY 2.0

1. **Too Much Wallpaper**Wallpaper has undeniably made a significant comeback in interior design trends, offering an immediate way to inject personality and style into a room. However, what you adore in terms of pattern and color scheme might not resonate with the broad spectrum of potential buyers walking through your door. Personal aesthetic choices, especially bold ones, are inherently subjective, and betting your home’s appeal on them can be a risky strategy when selling.

The financial outlay for wallpaper installation alone can be considerable. According to home improvement information site Fixr, installing wallpaper typically costs homeowners between $800 to $1,200, with many spending around $1,000 for a standard 12-foot-by-18-foot room using vinyl wallpaper. This isn’t a small sum to begin with, but the real issue arises when you consider its recovery upon sale.

More often than not, this cost will not be recouped. Furthermore, the removal of wallpaper is notoriously time-consuming, messy, and can even damage walls if not done properly. Alex Capozzolo, co-founder of Brotherly Love Real Estate, highlights this concern, stating, “The quality deteriorates over time and most future owners of your home will want to remove it, which can be a cumbersome process.” When preparing your home for sale, a fresh, neutral coat of paint offers a far more universally appealing and cost-effective solution than personalizing with wallpaper.

2. **Built-In Electronics**The allure of a cutting-edge home theater or smart home system with seamlessly integrated built-in electronics is undeniable for many homeowners. It promises convenience, sophistication, and a truly immersive living experience. While these features might perfectly suit your lifestyle and enhance your daily enjoyment, they pose a significant challenge when it comes time to sell your property.

The primary issue with built-in electronics lies in the relentless pace of technological advancement. Gadgets, no matter how state-of-the-art they are today, inevitably become outdated or even obsolete in a remarkably short period. What was once a desirable, high-tech customization quickly transforms into a liability, making your home appear less modern rather than more.

Prospective buyers often look for flexibility and the opportunity to imprint their own style and technology preferences on a new home. Discovering a home laden with personalized, fixed electronics that may no longer meet their needs or integrate with their preferred systems can be a major turn-off. This type of customization, unfortunately, tends to decrease home value by limiting its appeal to a niche market rather than broadening it.

3. **Wall-To-Wall Carpeting**The decision to install or keep wall-to-wall carpeting, particularly over existing hardwood floors, is a common misstep for homeowners preparing to sell. While carpeting can provide warmth and sound dampening, its impact on resale value is generally negative. Alex Capozzolo offers straightforward advice: “If you have existing hardwood floors, don’t cover them with carpet. Most new homeowners prefer to remove carpets if they are of poor quality. Carpeting adds no value to a property.”

This preference for hardwood is not merely anecdotal; it is strongly supported by industry data. According to the National Association of Realtors (NAR) 2022 Remodeling Impact Report, interior home projects involving hardwood floors yield some of the highest cost recoveries. Refinishing existing hardwood floors saw an impressive 147% cost recovery, while installing new hardwood flooring recovered 118% of its cost.

These figures underscore a powerful financial incentive. If you invest $20,000 in new wood flooring, you could realistically see an additional $23,600 added to your home’s sale price, effectively turning a profit on the renovation. This significant return, however, is contingent on the specific house and the type and design of the hardwood floors chosen. Therefore, preserving or revealing existing hardwood, or investing in new, high-quality hardwood, is a far wiser strategy than installing or maintaining wall-to-wall carpeting.

4. **Swimming Pool**The dream of owning a swimming pool often conjures images of endless summer fun and a luxurious lifestyle. However, when it comes to boosting your home’s value, a swimming pool often fails to deliver a positive return, especially in regions that aren’t consistently hot for the majority of the year. For many buyers, a pool represents a significant financial and time commitment, not an added benefit.

The average cost to construct an in-ground pool is substantial, estimated at around $65,909, according to home services directory Angi. This initial outlay is just the beginning of the expenses. Prospective buyers are well aware of the ongoing financial burden associated with pool ownership, which can range from $3,000 to $5,000 annually for maintenance, alongside a potential increase in homeowners insurance premiums due to increased liability.

While Angi notes that a pool could increase a home’s value by anywhere from 5% to 56%, this wide range highlights the unpredictability of its return. Factors such as climate, local market demand, and the type of pool (in-ground versus above-ground, with in-ground pools typically offering a higher return) heavily influence its value proposition. Ultimately, the question arises: if you can’t swim year-round, is a pool truly worth the immense investment from a resale perspective? For many buyers, the answer is a resounding no.

classic cars automotive mechanics — Black Classic Car Inside the Garage · Free Stock Photo, Photo by pexels.com, is licensed under CC Zero

5. **Garage Conversions**Converting a garage into a livable space, such as a studio apartment, a home gym, or an additional bedroom, can seem like an ingenious way to maximize your home’s square footage and potentially generate rental income. Homeowners typically spend between $6,002 and $27,705 on such projects, according to Angi. Yet, despite the substantial investment and the creation of new interior space, this renovation project rarely adds value to the home and often has the opposite effect.

Real estate expert Alex Capozzolo advises strongly against this particular renovation, stating, “Keep the garage as is.” His reasoning is straightforward and practical: many homebuyers are actively searching for properties that include a functional garage to park their vehicles, store belongings, or use as a workshop. When you alter the garage layout too significantly, it loses its fundamental purpose and value in the eyes of these buyers.

The perceived benefit of an additional living area is often outweighed by the loss of designated parking and storage space. Buyers often prioritize practical elements like vehicle protection and ample storage, especially in areas where street parking is at a premium. Consequently, a converted garage can narrow your pool of potential buyers and may even lead to lower offers, as new owners might factor in the cost and effort of converting it back to a traditional garage.

6. **DIY Projects**For many homeowners, undertaking DIY renovation projects is an appealing prospect. It offers a seemingly budget-friendly option to update a home, instill a sense of personal accomplishment, and potentially add value without the hefty costs of professional labor. While simple, well-executed DIY improvements can indeed be beneficial, the risk significantly increases when projects are tackled without the necessary expertise or precision, potentially leading to unforeseen consequences during a home sale.

The truth is, even seemingly straightforward DIY home improvement projects can go horribly wrong if not handled correctly. Buyers are incredibly discerning, and they possess a keen eye for quality. Visible flaws, shortcuts, or substandard finishes from a DIY effort are not only noticeable but can actively detract from your home’s overall appeal and perceived value. What might look “good enough” to an untrained eye could signal larger underlying issues to a professional home inspector or an experienced buyer.

Ultimately, while saving money on labor costs might be the initial motivation for a DIY project, the long-term impact on your home’s resale value can be detrimental. Spending the extra money to have the job done correctly by a skilled professional often yields a much better return on your investment. It ensures high-quality results, instills buyer confidence, and avoids the need for subsequent repairs or price reductions that could easily erase any initial DIY savings.

Continuing our journey through the renovations that astute homeowners should think twice about, we turn our attention to additional projects that might seem appealing but can, in reality, diminish your property’s value and appeal to potential buyers. As you prepare your home for sale, especially in a dynamic market like Los Angeles where homes receive multiple offers but buyer expectations are high, understanding these pitfalls is key to maximizing your return and ensuring a smooth transaction.

“A Bold Color Scheme for a Bold Client” by Jeremy Levine Design is licensed under CC BY 2.0

7. **Bold Colors**Painting is often seen as one of the most straightforward and cost-effective ways to refresh a home, a common DIY project for many homeowners. Indeed, a fresh coat of paint can instantly transform a space, giving it a clean and updated feel. However, the choice of color can make or break this improvement’s impact on your home’s final sale price.

While you might adore a vibrant accent wall or a deeply hued living room, bold, dark, or highly personal color choices tend to be significant turn-offs for prospective buyers. When buyers walk into a home, they are often trying to envision themselves living in that space, and personal, strong colors can make it difficult for them to project their own style and preferences onto the property. It becomes a distraction rather than an enhancement.

The cost for a painting project typically ranges between $966 and $3,087, according to HomeAdvisor. While this investment can increase your home’s appeal, the return is highly dependent on the chosen palette. Opting for neutral colors—think whites, grays, and light beiges—is a far safer and more effective strategy. These universally appealing shades create a sense of spaciousness and cleanliness, allowing buyers to see the home as a blank canvas ready for their personal touch, ultimately helping to achieve a better sale price.

8. **Adding a Sunroom**The idea of adding a sunroom can be incredibly enticing, promising abundant natural light and a charming extension of your living space. It might even seem like a clever alternative to a more extensive, full-room addition, offering a sunny retreat without the full complexity or cost of a traditional expansion. However, when it comes to resale value, a sunroom often falls short of delivering the same return on investment.

The expenses associated with constructing a sunroom can be substantial. For a smaller, prefabricated option, you might look at costs starting around $5,500. Yet, for something more luxurious, custom-designed, or a four-season room built to withstand varying climates, the price can skyrocket to as much as $120,000. Angi estimates the cost per square foot for uninsulated spaces at $150 and up to $300 for a four-season sunroom, positioning it among the most expensive home improvement projects.

A critical factor that undermines the financial value of a sunroom is how it’s treated in home appraisals. Unlike a traditional, fully integrated room addition, sunrooms are often not included in a home’s total heated or finished square footage. Since appraisers heavily rely on this metric to determine a property’s value, a costly sunroom addition might fail to boost your home’s appraised value proportionally, making it a less-than-ideal financial investment when your goal is to increase resale value.

“Textured Wall 16465” by Steve Snodgrass is licensed under CC BY 2.0

9. **Textured Walls and Ceilings**While certain design trends come and go, some aesthetics can persistently detract from a home’s modern appeal. Textured walls and ceilings, most famously “popcorn” ceilings, are a prime example. While they might have been fashionable in decades past, today, they often signal an outdated interior and can be a significant turn-off for contemporary buyers, who generally prefer smooth, clean surfaces.

The project of removing texture from walls and ceilings is notoriously difficult, messy, and time-consuming. Homeowners typically spend between $934 and $3,073 to remove a popcorn ceiling, averaging around $6 per square foot, a cost that depends on labor rates and room size, according to Angi. This is not a small undertaking, and the presence of these textures can indeed lead to lower offers when it’s time to sell your home.

Adding to the complexity and expense, older popcorn ceilings, particularly those installed in the 1980s or earlier, frequently contain asbestos. The discovery of asbestos necessitates specialized removal procedures, which can dramatically increase the project’s cost, pushing it to around $5 to $20 per square foot. Buyers are often wary of homes with such potential issues, making the presence of textured walls and ceilings a notable disadvantage in the competitive real estate market.

10. **Overdone Landscaping**First impressions are everything in real estate, and beautiful landscaping can significantly boost curb appeal, enticing more prospective buyers to step through your front door. However, there’s a fine line between appealing, well-maintained greenery and landscaping that is excessively elaborate or high-maintenance. Overdone landscaping, particularly if it involves costly and complex decorative additions, can surprisingly become a concern rather than an asset for potential buyers.

The attractiveness of overly ornate or specific decorative landscaping is inherently subjective. What you consider a stunning garden oasis, a buyer might see as an overwhelming commitment of time and resources. Many modern buyers, particularly those with busy lifestyles, are looking for low-maintenance outdoor spaces that offer relaxation without constant upkeep. Intricate water features, exotic plantings requiring specialized care, or sprawling, complex garden designs can appear daunting.

Buyers often factor in the perceived difficulty and cost of maintaining a yard when making an offer. If your landscaping appears too labor-intensive, it could be viewed as a chore rather than a charming feature, potentially leading to lower offers or deterring buyers who don’t want to spend their weekends weeding and pruning. The key is to create inviting, well-kept landscaping that enhances the home’s aesthetic without demanding excessive ongoing effort from a new owner.

11. **Outdoor Fire Features**An outdoor fire feature, whether it’s a cozy fire pit or a more elaborate fireplace, certainly adds an element of charm and functionality to your backyard, creating an inviting space for entertaining and relaxation. It conjures images of cool evenings spent with friends and family, making memories under the stars. However, when it comes to boosting your home’s resale value, these amenities are often a poor investment.

While they enhance the quality of life for the current homeowner, outdoor fire features rarely deliver a positive return on investment. According to NAR’s 2023 outdoor remodeling impact report, installing a dry-stacked fire feature with gas burners and a small flagstone patio would cost approximately $9,000. Yet, the report indicates that homeowners could only expect to recover about $5,000 of that cost, resulting in a modest 56% cost recovery. This means you’re unlikely to recoup your initial outlay when you sell.

For many buyers, an outdoor fire feature is a ‘nice-to-have’ rather than a ‘must-have,’ and they are typically not willing to pay a premium that covers the full installation cost. Instead of a major value driver, it’s often seen as a specific amenity that caters to a particular lifestyle, not a universal upgrade. Directing funds towards more universally appreciated renovations can yield a much better financial outcome.

12. **Landscape Lighting**Just like outdoor fire features, strategically placed landscape lighting can undoubtedly enhance the aesthetic appeal of your home, creating a beautiful ambiance and improving safety and security after dark. Illuminated pathways, highlighted architectural features, and glowing garden beds can make your property look elegant and inviting, especially during evening showings. However, its impact on your home’s overall value is often minimal compared to the investment.

The National Association of Realtors’ outdoor report reveals that installing 20 standard outdoor LED lights carries an average cost of about $6,800. Despite the visual enhancement, you should only expect to recoup approximately $4,000 of that investment upon sale, representing a 59% cost recovery. While it contributes to curb appeal, this return is not substantial enough to make it a financially sound renovation purely from a resale perspective.

Prospective buyers appreciate good lighting, but they are often unwilling to pay a premium that fully compensates for the installation costs of extensive landscape lighting. Their focus is usually on more fundamental aspects of the home and property. Therefore, while landscape lighting can certainly improve your enjoyment of your home, it’s crucial to understand that it’s an amenity with a low return on investment for sellers, and other improvements might offer a more significant financial benefit.

**Making Smart Renovation Decisions Before You Sell**

As we’ve explored, the path to preparing your home for sale is paved with decisions that can either significantly boost your property’s appeal and value or, surprisingly, detract from it. The impulse to renovate is strong, fueled by a desire to present your home in its best light and secure a competitive offer. However, the data consistently shows that not every investment yields a positive return, and some projects can even become liabilities in the eyes of discerning buyers.

Before you dive into any renovation, remember Alex Capozzolo’s wise advice: consider both the quality of life payoff and the financial impact. If a project genuinely enhances your daily living experience and you plan to enjoy it for years, that’s one consideration. But if your primary goal is to increase resale value, a critical, objective evaluation is essential. For instance, while painting your home with a non-neutral color might increase your personal quality of life, it will likely add zero value to your home for the next owner, who will probably repaint it.

Focusing on repairs, maintaining existing structures, and making universally appealing updates, such as preserving or installing hardwood floors, will almost always serve you better. Prioritize functionality, broad appeal, and projects with a proven track on investment, and you’ll empower yourself to make smarter choices that truly pay off when it’s time to hand over the keys. After all, the goal isn’t just to sell your home, but to sell it well, with confidence and a well-deserved return on your most thoughtful investments.