Over-improving a home is a classic mistake that many new homebuyers make. They buy a home in a neighborhood where property values are relatively low, and make a ton of improvements on the home to make it stand out. Unfortunately, you can only raise a home’s value so much through home improvement. The value must still fit in with the neighborhood or people simply won’t pay enough to justify the extra work you put in.

If you buy a $130,000 home and put $30,000 in improvements, you’re going to have trouble selling a $160,000 home in a neighborhood where most of the homes are valued at $115,000. Find out about the neighborhood and comparable properties before you start remodeling.