Can your house ever be too nice? Turns out, the answer is yes. Call it the curse of overimproving: sinking so much into upgrades, renovations or additions that you’ve burned off nearly all the equity of your home. When you sell, you “never get 100 cents on the dollar, no matter what the improvement,” says Erik H. Reisner, managing partner of Mad River Valley Real Estate in Vermont. “It may increase the value of the property, but not dollar for dollar.” That means homeowners need to be careful when they plan home improvements, renovations or additions. If it’s for your own use or helps you get more time in the house (like adding a first-floor bedroom), that’s smart. But if your sole purpose is to increase your home price or even “get it back at resale,” forget it. Want to be wise with your renovation dollars? Here are six points to consider. [Read this article]
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