Realtors® Reveal: 5 Renovation Mistakes Sellers Should Avoid

When thinking about selling, homeowners’ first instinct may be to make renovations to increase value and entice potential buyers, but doing so can be costly and unbeneficial in the long run. Here are five renovation mistakes sellers should avoid, according to a few Pennsylvania Realtors®.  

1. Making Niche Upgrades 

“In my world, you make the renovations on your home that please you and enhance your comfort and enjoyment of the home,” PAR President-elect Bill Lublin said. “Whatever the cost, when making a home improvement, if resale is a consideration, consider what most people like. Avoid extreme colors or use cases that center around specific interests or uses.” 

“For example, a two-car garage is usually more valuable than a single-car garage, but a six-car garage limits the buyer pool to people who need that type of space specifically for their business or their costly car habit.”  

PAR Treasurer Eric Rehling offered similar advice. 

“The advice I would give a seller is to try and avoid highly personal renovations,” he said. “Neutral concepts and colors tend to sell better, not because everyone likes them, but rather because most people don’t hate them. When the home becomes a product to sell on the market, highly unique or custom renovations can sometimes become a turn off to folks who don’t have the same preferences.” 

2. Spending Big Money 

“I would not avoid a bathroom renovation, but I always caution my clients to be very careful about overspending,” said Reading-Berks Realtor® Jason Burkholder. “A nice bathroom is great, but it only needs to be nice – not amazing, unless you’re doing it for your own enjoyment. At best, you get about 40% return on what you spend on bathroom renovations, so no matter how cool it looks, don’t go overboard.”  

Rehling added, “I would mention avoiding high-priced renovations that have less impact on the showing. In general, a buyer starts to gather their first impressions of the home within 5-10 minutes of showing up. That’s why curb appeal is so important. So, doing a costly renovation on the third bathroom in the finished attic carries way less impact on the impression and emotions of the buyer than using that money to dress up the front exterior or a room on the first floor.”  

3. Waiting to Sell After Renovating 

“The most effective strategy to maximize your investment return is to list the property for sale as soon as the renovations are complete,” PAR District 1 Vice President Stephanie Biello shared. “Renovations that are a few years old tend to lose their appeal and value.”  

4. Adding High-End, Energy-Efficient Upgrades 

“Homeowners often invest heavily in high-end, energy-efficient upgrades like solar panels, advanced HVAC systems, spray foam insulation and Energy Star-rated appliances, expecting to see a significant return when selling their property,” 2023 PAR President Al Perry said. “However, I’ve seen sellers disappointed when buyers aren’t willing to pay a premium for these features.” 

“While these upgrades can offer long-term savings, many buyers don’t fully understand their value,” he continued. “If you’re making these improvements, it’s crucial to keep a detailed record of the cost savings over time, as only a small subset of buyers will truly appreciate and pay extra for them.”  

5. Investing in Seasonal Improvements 

“Be careful of making substantial investments in seasonal menus,” Lublin warned. “An outdoor tennis court gets limited use in Pennsylvania, and a pool gets even less due to the limited time outdoor temperatures make them pleasant to use.”