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It’s natural to want to upgrade your home to make it more comfortable and better suited to your family’s needs and lifestyles. There is a danger in over-renovating, however. A house that’s worth significantly more than others in the neighborhood can be hard to sell. 

How Does Your Home Compare to Others Nearby?
Consider the average age and value of homes in the area. If your neighborhood is filled with older houses in average condition, upgrading yours to make it much more modern and luxurious would make it stick out like a sore thumb and could make it hard to find a buyer in the future. If your house is dated or run down compared to others in the neighborhood, making some improvements could help you attract a buyer down the road.

Types of Upgrades to Consider
When renovating your home, focus on improving areas that are most important to buyers to make them more functional and comfortable. Upgrading the kitchen, master bedroom and bathrooms will generally increase a home’s resale value. 

Since a damaged roof and inefficient windows can affect monthly utility bills, and since they are expensive to replace, buyers look for houses that have roofs and windows in good condition. If yours are old and worn out, replacing them would be a good investment that would pay off in the future.

On the other hand, spending money on home improvements specifically designed for your family could make it difficult to sell your house later. For example, a room tailored to your hobby wouldn’t appeal to most buyers. It could actually be a deterrent since buyers would have to convert the room to make it suit their needs. 

Adding bedrooms for your growing family could make your house worth more than the rest in the neighborhood. A sprawling house in an area filled with more modest homes might not appeal to buyers searching for a home similar to the others around it. 

Luxurious upgrades are expensive and could make a house difficult to sell. Marble floors, for example, could be a turnoff to buyers if other homes in the area didn’t have similar features.

Improving your home’s curb appeal is generally a smart move, but don’t go overboard with an elaborate garden and fountain that would be difficult and expensive to maintain. A pool might be an oasis for your family, but prospective buyers could focus on the amount of maintenance or view it as a safety hazard.

Spend Home Improvement Dollars Wisely
When planning renovations, you should think about how they would affect your home’s value and resale potential. Making major upgrades might seem like a good long-term strategy, but it could backfire in some cases. Focus on making your home more comfortable, functional and energy efficient, and aim to keep its value in line with those of other houses in the neighborhood.