In recent memory, I had a client install Leased Solar - got 2 years of ownership and then sold his house due to an unexpected work situation - yikes- that cost him the entire lease buyout with no homeowner financial benefits realized.

Also unpermitted room additions - they are costly when you sell.

Folks from Miami changed out all of the hardwoods to tile, thinking that was a considerable improvement. While the tile was beautiful, it just is not what buyers want in our market--they WANT those hardwoods that were ripped out and disposed of! 

   A sunroom of sorts, with a hot tub.   In a townhouse/duplex when comps were around $150K. 

   It was not permitted nor done to code, it had not been done by a licensed contractor/builder.  The Seller claimed to have spent $30K on it.  She thought that number should be added to the sales price!

   I had to "gently explain" that she needed to have the County Building Department certify that it was code-compliant, that it might also trigger a re-assessment by the Property Appraiser, and if it was not to Code it might void her homeowner's insurance policy. 

   And she might have violated a Deed Restriction or requirement from the HOA that "no additions or exterior modifications" to a unit could be made without their approval.   (The sunroom was on the back of the house; only the immediate neighbors would have seen it, apparently nobody from the HOA had caught it when it was constructed).

   She believed me about the Code requirements and the HOA.  But she remained adamant that the sales price/list price should be higher so that she could recoup those costs. 

   I did not take that listing.

I had a seller who invested about $75,000 in the basement and they really believed their house was worth at least $100,000 over any other houses in the area.

NOT!

Approx 98% of sales in my market are apartments- so I am disregarding the townhouse market for this conversation. Since most apartments are interior spaces only- most of the issues we have are just finishes that don't appeal to most people. I can add that a colleague of mine had a Park Avenue co-op listing that was last updated somewhere in the 1970's and they added a stage in the living room with a stripper pole. Whomever was buying that apartment was buying a story as much as they were buying an apartment.  I doubt it was added believing it would raise the price...but more of a lifestyle choice. What I can offer it's usually the boards themselves that are misguided. In my own building we had a board - 2 out of 3 of the board members worked in residential real estate (this was when I still worked in finance) and they believed keeping the common charges incredibly low would add value to the apartments. That works....IF the building is both in great condition financially and physically. Ours was neither. I had to get involved, merely because I had to defend my home, my investment, everything I had worked so hard for. I took over the board- raised the monthlies massively- ultimately doubling them over a 3 year period, started fixing things and eventually stabilized the health of the building. This eventually also lead me toward my career change to become an agent since I knew I could do better...and I have. 

Steven Hoeke From a potential Seller, I recommended around $640-$660k, the response was: I would definitely want to list it higher than that. We put in a $40,000 Fence a $15,000 fireplace we’ve cleared all the land . Gutter system which was over $5000. Everything has been painted the water softener system was over $15,000. We would have to get some of this money.

The potential Seller wants to list if over 700k, the comps are not there.

finish spaces.... attic, basement.  

Gheez, reflecting over the years, during the short sale era, sellers made no improvements. 

With probate and trust sales, I am consulting with clients before any work is done, if any, so there is none. 

Past client resales, same as above. I recommend what needs to be done, and I have not received any pushback.  

Bottom line:  I got nothing for ya. 

Other than cleaning and painting (exterior and interior of both), I can't think of anything that will actually return $ for $. 

A seller thought a "black" bathroom was the norm LOL. For the most part, sellers hold onto the purse until an agent says look: we need painting, landscaping, flooring or window covering PLUS a thorough cleaning & it gets done 90% of the time. The seller usually asks me or relies on me as to what is needed Steven Hoeke ...a good question here thank you Steven

Putting in an expensive pool... you never get your money back. Although, recently I listed a property where the owners put in a new front door that cost $10K... they'll never recover that investment.

I have seen full renovations done where pretty much any prospective buyer would want to fully renovate after they have purchased it, haha.

Swimming pools. It's just not the right climate here for them, you might get 3 months of use. One in my neighborhood added an indoor one. It's the ugliest add on I have ever seen. That said I sit in the camp of if you want it, don't not have it just because of re-sale. There's always a buyer. Just don't expect any money back.

The worst was a black kitchen remodel. It was very expensive, all black and very little lighting to brighten it. The seller loved it and most potential buyers took one look and walked away. 

I had one client finish there basement and put in a bar thinking it would raise the price by lots, wrong, the investment was not worth it.

Paint is cheap.  Taking a house to neutral colors with the added effect of that fresh pant smell.  Expensive,  I have to admit that I do not recommend spending big bucks for increased value at the closing table.  Not a good roi.  

As investors, we have completely renovated many houses for resale. The kitchen is often the most expensive area other than the need for a new roof.

$50,000.00 finishing a basement. It looked worse afterwards. After it was done, owner went around and put post-it notes on everything. Every plug and light switch had a post it note saying " Plug" or " switch" with an arrow pointing to it. There was well over 50 post it notes for people to read.

I see so many people do an expensive remodel, and then watch the buyers decide to tear it all out and redo it in their own taste.

Very wasteful, yet, when people do not do this they lose out due to poor first impressions.  A tough choice...

     What you suggest considers the way the wind blows in YOUR local real estate market today. Does your seller possess DIY skills, have any money and what is their time frame motivation Steven Hoeke?

     But we've all seen it... you walk into an ooh la la kitchen expecting more of the same as you room to room tour the sticks and bricks. Then whoa. What happened here and there? Nothing happened in project after project the owner planned to finish but did not. Often because they blew their entire wad on the designer chef inspired kitchen.

     Divorce papers got served, someone developed cancer. Or got a pink slip and the money suddenly just dried up to fund the other started but left unfinished house projects. Life happened right on schedule.

     So the one best improvement suggestion on this house scenario is DON'T START ANY MORE NEW IMPROVEMENT PROJECTS. Stop throwing more money you don't have thinking it will make the property worth more. Your buyer set him/herself up at the plate to fan, strike out. Taking a major hit swing to recoup the cash but see ya. Pricing it right out of the market. The higher the price, the thinner the buyers.  

     Hold them back from the way they always dreamed to finish off the place. Consider the market the house is married to instead. Then it's spread the love and attention around all four corners in small amounts in all the little things. Make it battle stations mode ship shape around the entire property to get it balanced.

     Replace the bathroom fluorescent lights on both sides of the mirror that make you look like you wake up in a morgue every morning. For cheap money from Lowes or Home Depot, install better, more modern lighting that fits the house vibe. What is the look we are going after, anyone know so every decision is pulling in the right direction?

     Tighten the loose wobbly railing to the second floor, replace one closet door ruined by a son with anger issues. Tone down a couple rooms with mopar muscle car colors that hurt your buyer's eyes. Deep six the three overflowing cat boxes. There are three couches in the living room overload. Two gotta heave ho go and don't just stuff them in the garage... out, gone, removed please.

     It's not a granite or quartz countertop that tips the scales. More often the how did the homeowner family members treat the property healing remedies needed? How big a job jar of unfinished projects is your buyer willing to inherit?

     What do the vast majority of home buyers eat up in YOUR market and expect? What property standards do the back-room bank mortgage underwriting team and the appraiser want? Check off those boxes first.

     Or just price it so attractively a cash buyer gobbles it up "as is where is" if no money or time and alarms are going off loudly around your seller. Create quick occupancy conditions, leave the zero-turn riding lawnmower and a full tank of fuel, whatever trinkets to stand out from the inventory flock. 

I had some clients that moved to Denver from Portland, and they finished their basement with absolutely high-end finishes, which DO NOT equate in a higher bottom line.   It sold quickly, but not at the price they were thinking.

To help the sale, sellers invested in granite countertops (before I even met them), but not in new cabinets that were really dated. It looked ridiculous; a waste of money. Buyers planned to rip everything out anyway. 

I have a listing now of a house that two generations of family ownership has turned into a very personalized property. After more than two months on the market and being substantially overpriced, the seller has finally accepted an offer from a flipper at a price well below what he believed he would get. 

I had a client replace the backyard grass and flower beds after the house was already in escrow.  No request for the repairs was given to my client.

I believe sellers often overspend without considering whether the updates will actually increase the property's value. When it’s time to sell, we have to hear over and over again how much they spent on highly customized improvements that buyers rarely care about. Being in Los Angeles, I’ve seen perfectly updated mansions completely rebuilt from scratch—not to mention smaller projects.

I knew a Dr who painted his 2 year old  (steel siding home) thinking it would help. It was a light yellow and I thought it looked fine. I can't believe his Realtor let him do it Steven Hoeke .

It's always wise to have sellers call a local agent to look at the house and decide on what might be a good return on the investment. I had a seller that wouldn't let me see the house to give them advice on what to do as THEY KNEW exactly what buyers wanted. When they finally let me in they painted the ceiling black in the formal dining (it already had a low ceiling) and spent a fortunate on light fixtures that they liked but probably not the general public. The money they spent on repainting the gutters (didn't need to be) and other things I was astounded with and they all thought those were the important things! Go figure!