I’m a Real Estate Agent — 7 House Features That Buyers Always Overpay For

18/02/2024

Real estate agent inviting her client to enter the house and look at it

When buying a new house, there are a lot of things that go into finding the perfect home. Ideally, it’s in your desired neighborhood. It has the number of bedrooms and bathrooms you’re looking for, and it has some nice features that can make living there more enjoyable.

See: 5 Types of Homes That Will Plummet in Value in 2024

Find: 6 Genius Things All Wealthy People Do With Their Money

Unfortunately, many buyers become fascinated with some of the home’s features without considering whether or not they are worth the additional price tag. Keep reading as we explore some common house features buyers almost always overpay for.

Sponsored: Owe the IRS $10K or more? Schedule a FREE consultation to see if you qualify for tax relief.

No. 1: Swimming Pools

Depending on where you live, a swimming pool can be a great addition to your home. However, if a swimming pool is on your list of features to have, make sure you’re paying an appropriate price.

On average, swimming pools will provide a 7% return on investment, per HouseLogic. Before putting in an offer on a home with a pool, make sure you look at the comparables in the neighborhood — comparables that don’t have swimming pools. Ideally, your offer isn’t much above a 7% premium over those comparable homes.

“Many buyers pay a premium for homes with swimming pools, expecting it to be a significant advantage,” said Kristin Hintlian, co-founder of Bonsai Builders. “While it can certainly be a luxury, the costs associated with maintaining a pool are often underestimated. Pools require regular maintenance and cleaning and can escalate your home insurance rates.”

Read: Barbara Corcoran Says Now Is the ‘Best Time’ To Buy a House — Here’s Why

No. 2: Overly Specific Customizations

If you’re a fish lover, you might love having a customized fish tank built into your family room. However, that doesn’t mean the next person will feel the same. This also goes for other customizations — things like a sauna in the basement or a steam shower in the master bathroom. If the price tag of the home reflects these upgrades, think twice, because the chances are you won’t be able to recoup your investment once you decide you want to sell.

“I had a client that invested a significant amount of money in building a custom wine cellar in their home,” said Matt Stigliano, real estate broker at Kimberly Howell Properties. “However, when it came to selling, few prospective buyers were wine enthusiasts and didn’t see the addition as justifying a higher price.”

No. 3: Overemphasis on High-End Finishes and Fixtures

Upgraded kitchens can help increase the value of a home. You’re more likely to spend a little extra on a home with a modern kitchen instead of something that looks a little dated. However, people get into trouble when they fall for the trap of overly high-end fixtures. While having a Sub-Zero appliance package might be nice, it probably isn’t worth spending the price tag the sellers might be asking.

“From gold-plated bathroom fixtures to ultra-high-end kitchen appliances, buyers often pay a premium for these additions,” Hintlian indicated. “However, they don’t necessarily give a high return on investment when you resell. In fact, the next buyer may not appreciate the same aesthetic or might want to renovate based on their personal style.”

No. 4: Extensive Landscaping

Landscaping can help improve a home’s curb appeal, which can boost the value of a home. However, said landscaping doesn’t need to be extreme. Proper landscaping can be as simple as trimmed bushes, attractive plants or flowers, and manicured grass.

Some people can get carried away with adding exotic plants, fountains and other water features. While these can look great to some people, they drastically increase the price tag and aren’t going to be exciting to everyone. If you’re purchasing a home with extensive landscaping, ensure you’re not paying a premium.

“While a beautifully landscaped yard can undoubtedly enhance a property’s appeal, it’s crucial to approach this feature cautiously,” said Scott Sloan, founder of Grand Exit Property Acquisition Group. “Some buyers find themselves paying a premium for meticulously maintained gardens, only to realize that the ongoing maintenance costs and personal preferences can make it a less-than-ideal investment. Prioritize the overall condition and structure of the property over extravagant landscaping, as tastes in outdoor aesthetics can vary widely.”

No. 5: Sophisticated Home Automation

Home automation is helping transform the way we live inside our homes. Smart thermostats automatically adjust the temperature inside the home based on your schedule and habits. You can control the lights or entertainment system with your voice. But are these conveniences really worth the price tag when purchasing a home? Most likely not.

“Sophisticated home automation systems are another feature where buyers tend to overpay,” said Hintlian. “While these systems offer convenience, they can be complex to manage and maintain. Additionally, as technology evolves rapidly, these systems may become obsolete or require upgrades, leading to future expenses.”

No. 6: Hidden Features

At a certain point in any home’s lifespan, it will require things like an upgraded HVAC system, a new roof, and potentially electrical upgrades. Each of these items can come with a pretty hefty price tag. It’s important that you don’t let the sellers pass along the expense in the sales price. These items are basic necessities for maintaining a home.

No. 7: Garage Conversions

Having an extra bedroom is usually a good thing — it can provide extra space and increase the resale value of the home. However, for many people, it’s not worth sacrificing another useful space in the home.

Occasionally, due to limited space and the inability to build onto other areas of the home, owners convert the garage into a living space. This has a huge price tag. It requires permits, HVAC, electrical, framing and all the finishes. If you’re purchasing a home with a garage conversion, make sure you’re only paying for how much the extra bedroom is worth, not what it cost the previous owners to build.