Austin Klar explains why overbuilding is the costliest renovation mistake. Upgrading a 2-bedroom condo to 3-bedroom price levels, or adding luxury finishes to a B-minus neighborhood home, can eat your profit. Check with real estate pros on post-renovation value before you spend.
The biggest mistake you can make if you're renovating your house but thinking of selling it in the near future is overbuilding. A 2-bedroom condo is going to be, on average, less expensive than a 3-bedroom condo. So if you're spending so much money on renovating your 2-bed that you need to get 3-bed prices to even get your money back, that's a problem. If you're renovating a single-family home in a B-minus location, don't go ham on the renovation such that you need A-plus location prices to get your money back. Overbuilding is a surefire way to lose money, so definitely talk to a professional about what post-renovation value looks like before you spend hundreds of thousands or millions of dollars on a renovation. Follow me for more Bay Area real estate.
