3 Improvements That Do Not Add To A Home’s Value

Q: We watch a lot of movies at home, so I want to add a home theatre — how much do you think that will add to our home’s value? Stan, Montclair, NJ

A: Most home improvements add less value to a home than their cost, which makes them bad investments from a financial perspective. Nevertheless, new kitchens and bathrooms tend to add more value than other home improvements. Many home improvements generally do not increase a property’s value. Here are 3 home improvements that don’t add to a home’s value:

Garage Conversions: Some people convert their garage to living space, but many home buyers will prefer using a garage to park their car.

Swimming Pools: Pools are expensive to install, expensive to maintain, often increase homeowners insurance premiums and are not appealing to many buyers especially in areas where it’s not hot for the majority of the year.

Built-In Electronics: While built-in electronics may be perfect for your home theater, they often turn off prospective home buyers because gadgets eventually become outdated and obsolete and can actually decrease a home’s value.

Stan, if you want to install a home theatre because you’ll use it and enjoy it while you own your home, you should, but it’s unlikely to increase your home’s value. Thanks for your question, Stan.

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