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One thing I personally find infuriating when talking to people about home projects or renovations is their obsession with "resale value." It severely limits th

One thing I personally find infuriating when talking to people about home projects or renovations is their obsession with "resale value." It severely limits the scope of what people are willing to do to basically what is trendy on HGTV, etc. that year.

googlryas 6y ago
Spending $10 knowing you will get $11 back in the future is very different than spending $10 which you'll only get $3 back.
- war1025 6y ago
  That's all conditional on you planning to sell in the near-term. My parents have lived in the same house for 35 years. On that scale, what is good for resale value doesn't really matter. Things that were trendy in 1990 are severely dated at this point.
  - nmfisher 6y ago
    That's ok, they can just wait until 90s becomes retro enough to be cool again. Conversation pits are back in vogue from the 70s, so I'd say they have another 20 years! https://www.apartmenttherapy.com/trend-alert-conversation-pits-251828 https://www.apartmenttherapy.com/trend-alert-conversation-pi...
- function_seven 6y ago
  When it comes to design choices that affect resale value a decade in the future, the examples are probably more like $10/$13 vs. $10/$12. Real estate agents and HGTV shows have distorted people's view on the importance of small details on resale value. I promise you that the choices the author made in designing their house will find an equally enthusiastic buyer if they do decide to sell. Of course there will be some potential buyers who have "no closets" as a deal breaker. But there will be others who fall in love with a unique house that exists literally nowhere else in the market. If you're going to limit your design choices to appease a potential buyer decades in the future, you might as well buy an existing house in the first place rather than striking out on your own build. The whole point of a custom home is to customize it to your liking.
  - FireBeyond 6y ago
    > Real estate agents and HGTV shows have distorted people's view on the importance of small details on resale value. Yup. I have heard way too many times on those shows, "You spent $50K on renovations so that increased your value $100K", without any form of critical thought. Yes, improvements can have an intrinsic value, but these shows make it seem automatic and huge, without fail.
    - sk5t 6y ago
      Most of the time, the HGTV spends are horrible investments even if the touted "new value" is correct. The margin after increase in closing costs--agent fees, title transfer tax, to say nothing of opportunity cost of the cash outlay--is often zero or negative.
      - FireBeyond 6y ago
        Yup. I think it's Flip or Flop, where you start to realize that many of their flips only really break even or are marginally profitable. They'll tout "We made $30K for 6 weeks work". But $15K of it has to go to our investor who fronts the cash (he would occasionally show up on episodes), and there's two of them... And then you remember that most of their income comes from the show itself. I remember drama around 16 And Pregnant, and glamorizing teenage pregnancy. Says MTV, "Oh no, we only cover costs, we don't pay them for this". Fell apart when one of the girls, living in her trailer, working minimum wage at McDonalds, started appearing on the show in a brand new Saleen Mustang.
    - mindslight 6y ago
      IMO this is just basic consumerism couched in a simluation of industrious investing. If you're remodeling for higher resale value, then you're a flipper and should build accordingly - ie everything this post is lamenting. Otherwise, just be honest with yourself that you're spending money for your own personal enjoyment. Try selling a custom bicycle and you'll see how lovingly-picked components add up into a resale value, at a much lower price.
notJim 6y ago
The financial calculus behind this is unbeatable though. When you're spending a significant portion of your house's value on a reno, alarm bells start going off. If I'm spending $75k on a $500k house, you better believe I start asking myself if I'd be better off buying a $575k house instead. And trust me, you get to $75k very quickly in cities with expensive housing.
- sanj 6y ago
  The $75k I spend is going to be tuned for how I’ll use it. That counts for a lot, at least for me. And resale value calculations don’t take into account the joy and utility the changes afford you. Again, I value those highly.

googlryas 6y ago

Spending $10 knowing you will get $11 back in the future is very different than spending $10 which you'll only get $3 back.

war1025 6y ago
That's all conditional on you planning to sell in the near-term. My parents have lived in the same house for 35 years. On that scale, what is good for resale value doesn't really matter. Things that were trendy in 1990 are severely dated at this point.
- nmfisher 6y ago
  That's ok, they can just wait until 90s becomes retro enough to be cool again. Conversation pits are back in vogue from the 70s, so I'd say they have another 20 years! https://www.apartmenttherapy.com/trend-alert-conversation-pits-251828 https://www.apartmenttherapy.com/trend-alert-conversation-pi...
function_seven 6y ago
When it comes to design choices that affect resale value a decade in the future, the examples are probably more like $10/$13 vs. $10/$12. Real estate agents and HGTV shows have distorted people's view on the importance of small details on resale value. I promise you that the choices the author made in designing their house will find an equally enthusiastic buyer if they do decide to sell. Of course there will be some potential buyers who have "no closets" as a deal breaker. But there will be others who fall in love with a unique house that exists literally nowhere else in the market. If you're going to limit your design choices to appease a potential buyer decades in the future, you might as well buy an existing house in the first place rather than striking out on your own build. The whole point of a custom home is to customize it to your liking.
- FireBeyond 6y ago
  > Real estate agents and HGTV shows have distorted people's view on the importance of small details on resale value. Yup. I have heard way too many times on those shows, "You spent $50K on renovations so that increased your value $100K", without any form of critical thought. Yes, improvements can have an intrinsic value, but these shows make it seem automatic and huge, without fail.
  - sk5t 6y ago
    Most of the time, the HGTV spends are horrible investments even if the touted "new value" is correct. The margin after increase in closing costs--agent fees, title transfer tax, to say nothing of opportunity cost of the cash outlay--is often zero or negative.
    - FireBeyond 6y ago
      Yup. I think it's Flip or Flop, where you start to realize that many of their flips only really break even or are marginally profitable. They'll tout "We made $30K for 6 weeks work". But $15K of it has to go to our investor who fronts the cash (he would occasionally show up on episodes), and there's two of them... And then you remember that most of their income comes from the show itself. I remember drama around 16 And Pregnant, and glamorizing teenage pregnancy. Says MTV, "Oh no, we only cover costs, we don't pay them for this". Fell apart when one of the girls, living in her trailer, working minimum wage at McDonalds, started appearing on the show in a brand new Saleen Mustang.
  - mindslight 6y ago
    IMO this is just basic consumerism couched in a simluation of industrious investing. If you're remodeling for higher resale value, then you're a flipper and should build accordingly - ie everything this post is lamenting. Otherwise, just be honest with yourself that you're spending money for your own personal enjoyment. Try selling a custom bicycle and you'll see how lovingly-picked components add up into a resale value, at a much lower price.

notJim 6y ago

The financial calculus behind this is unbeatable though. When you're spending a significant portion of your house's value on a reno, alarm bells start going off. If I'm spending $75k on a $500k house, you better believe I start asking myself if I'd be better off buying a $575k house instead. And trust me, you get to $75k very quickly in cities with expensive housing.

sanj 6y ago
The $75k I spend is going to be tuned for how I’ll use it. That counts for a lot, at least for me. And resale value calculations don’t take into account the joy and utility the changes afford you. Again, I value those highly.