Time and again, I encounter homeowners who decide to invest in upgrades they believe will boost their home's value without seeking advice from a professional first. I've found myself in numerous conversations at kitchen tables, delivering the tough news that the invested upgrades may not result in a higher sales price.

Here are the 3 biggest culprits that I see in the PNW:

1. A new roof: Let's approach it from this angle: Imagine a car with a well-functioning engine—it's a non-negotiable requirement! Just like a car's engine, buyers inherently assume that a house's roof is not only present but in good working order. Sometimes, sellers make the mistake of replacing a roof that still has about 5-7 years of life left, thinking they'll improve the overall resale value. But in reality, if the roof is still in good shape with no leaks or major damage, you won't see the return on that investment. Think of it this way: if your roof is in good shape, you don't need to replace it to increase the resale value. This is an expected feature for a buyer.

 2. Solar panels: Homeowners often receive advice (from a salesperson) promoting solar panels as amazing investments that can lower monthly electric bills. The pitch usually includes the notion that financing the panels makes it easy for a future buyer to assume the loan when it comes time to sell. However, what is often omitted is the fact that financing entails attaching a lien to the property, a crucial detail for potential buyers. The consequence of this lien is significant—should the buyer decline to take over the loan, the seller is then obligated to settle the remaining balance at closing for the deal to proceed. This unforeseen financial commitment could also catch the buyer off guard, requiring them to absorb additional monthly costs. A few extra hundred dollars per month could become a pivotal factor in a buyer's ability to afford the home. Finally, buyer apprehension can extend to concerns about maintenance costs and upkeep. 

 3. New windows: Similar to a new roof, the case is also true for new windows. While they contribute to the overall marketability, it's crucial not to anticipate a value increase from installing new windows. If your aim is to enhance energy efficiency and reduce utility bills, view the window upgrade as an investment in efficiency rather than a direct boost to your home's value.

You may be thinking, "Well, Carlie, wouldn't a house with brand new windows and a brand new roof be automatically worth more than the same house with a defective roof and windows?"

You are right, but think of it this way: The key word is defective. A home that has a new roof and windows does not receive a price increase - but a house with a defective roof and bad windows will see a price decrease, because what should be working is not. A house will not see an increase in value for items that are expected and should be working.

In an alternate scenario, two identical houses are for sale. One house has a new roof and the other one is nearing the end of its life, but it is still in good condition. These houses would be priced very similar, if not the same. If the seller who had the older roof decided to spend 20K to replace the roof to improve its value, they would not see that in return on the sale of the house. It's important to note, old does not always mean defective. 

In conclusion, consulting with a real estate professional will provide valuable insights into cost-effective strategies that genuinely boost a home's value. Avoid making hefty investments without careful consideration of the potential return on investment.