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Published on 15 Sep 2025
Renovations and upgrades are an excellent way to increase the value of a property and whilst it's true that smart upgrades can make a property more attractive to buyers, the harsh reality is that some home improvements can actually decrease your home's resale value.
Homeowners often assume that every upgrade or renovation will automatically boost their property's value. After all, newer materials, modern features and updated designs should attract buyers, right?
Unfortunately, that's not always the case.
Lew Geffen Sotheby's International Realty
shares five renovations that can hurt your home's value, along with why they often backfire.
1. Overly Personalised Luxury Upgrades
Everyone has their dream home vision but if that vision is highly specific to your taste, it might not align with what the average buyer wants.
For example, converting a bedroom into a walk-in wardrobe with built-in shelving and mirrors or installing an elaborate themed room like a jungle-themed playroom or medieval library are upgrades that will only appeal to a limited few, especially if you're now only left with one or two bedrooms.
It's also not a good idea to add high-end appliances or finishes far beyond the neighbourhood's norm.
The problem here is market mismatch. When you install ultra-luxury features in a mid-range neighbourhood, you risk overpricing your home relative to the competition. Many buyers won't want to pay extra for upgrades they don't find practical or that don't fit their style.
Why it decreases value:
If you want to personalise your home, it's best to choose elements that can be easily reversed, like paint colours, lighting fixtures, or removable wallpaper, so that future buyers can visualise the space as their own and not be deterred by the thought of costly renovations to restore the space.
2. Garage Conversions
Turning a garage into extra living space can sound appealing, especially if you need a home gym, office or guest suite but for many buyers, the garage is a must-have feature for secure parking, storage or hobbies and removing it can be a deal-breaker for many potential buyers.
Most buyers these days expect a garage to protect vehicles, not just from theft but also the elements as harsh sun, hail and ocean air are not gentle on cars so losing this feature in exchange for a small bonus room often doesn't feel like an upgrade to potential buyers.
Why it decreases value:
If you need additional square meterage, consider putting up a shed or extending your home to add a granny flat-these renovations are usually more appealing and less likely to alienate buyers.
3. Swimming Pools
Pools are a classic example of a luxury feature that can hurt as much as it helps. While some buyers will see it as a dream come true, many view it as a costly and high-maintenance burden.
Potential drawbacks include:
Before you go ahead, take a closer look at your neighbourhood and speak to a local agent. How many homes have pools, how many prospective buyers list pools on their must-have lists and does having a pool in that area add value and increase the sale price?
Why it can decrease value:
If you're adding a pool purely for resale value, it's rarely worth the investment unless you're in a market where they are the norm.
4. DIY or Poor-Quality Renovations
It's tempting to take on renovations yourself to save money or for the sheer enjoyment of tackling a project, but if the results are subpar, buyers WILL notice. Crooked tile lines, uneven flooring, poor caulking or mismatched finishes can make your home look cheap and neglected, even if you invested considerable time and effort.
Buyers often assume that visible flaws indicate deeper issues with workmanship or maintenance and this can lead to lower offers or requests for costly repairs during inspection.
Why it decreases value:
If you're not experienced in construction or design, it's better to hire licensed professionals for major projects. Good workmanship not only boosts appeal but also prevents potential liability issues.
5. Eliminating Bedrooms or Bathrooms
If you have more bedrooms than people living in your home, knocking down a wall can be very tempting. Imagine transforming a modest master bedroom into a huge suite! It might seem like the perfect upgrade.
But, unless you have four or more bedrooms, one of the fastest ways to reduce your home's resale value is to remove a bedroom or bathroom. It might make sense for your lifestyle, but it often shrinks the buyer pool, especially for families who prioritise more sleeping space.
Similarly, turning a full bathroom into a walk-in closet or laundry room can feel like a major downgrade. Bedrooms and bathrooms are top priorities in most property listings and reducing the number of either can instantly lower your home's market value.
Why it decreases value:
If you crave larger, more luxurious rooms, try expanding into underutilised spaces extending out onto the patio or perhaps reconfiguring your wardrobes and replacing older bulky cupboards with sleeker storage.
Renovations are a double-edged sword because while they can make your home more enjoyable to live in, they don't always translate into higher resale value. Over-customisation, market mismatch, loss of key features or poor execution can all work against you when it's time to sell.
Before taking on a major project, consider:
Sometimes, the best "renovations" for resale are the simplest ones-fresh paint, updated lighting, landscaping and small cosmetic improvements that make the home feel fresh without alienating future buyers.
In short: Build for your life, but if resale value is important, build with the next owner in mind.
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