Super Bowl Fans Spend Big on Home Theaters—but Do These Game-Day Upgrades Actually Increase Home Value?

by Anna Baluch

A home theater can really take your Super Bowl party to the next level.

But, is it actually worth the investment? 

The answer depends on your location, lifestyle, and plans.

While home theaters and other game-day updates can add comfort and create the ideal entertaining space, they may not make sense if you think you’ll list your home down the road.

Are game-day upgrades a lifestyle splurge or smart investment?

Even though movies and sports are popular these days, "game-day improvements" like man caves, entertainment rooms, and even home theaters are unlikely to increase home value as much as a new kitchen or bathroom. 

According to Angi, a well-designed home theater can lead to an ROI in the 50% to 80% range. Of course, this depends on your location, the quality of the theater, and how it integrates with the rest of your home.

For comparison, the average ROI on a minor kitchen renovation is 96%, while a bathroom remodel recoups an average of 72.7% of your investment. 

The reason? Generally speaking, these elements lack universal appeal and act more as a lifestyle boost for owners. To that end, depending on the improvements you make, you might even scare away certain would-be buyers.

“Usually these types of setups are customized to certain team colors or paraphernalia, and this customization can actually go against the resale value of a home,” says Ryan Meagher, pre-construction manager at BVM Contracting in Toronto.

Which features are worth it?

If your goal is to add some type of value to your home, Meagher recommends you focus on the TV setup, seating arrangements, and sound system. 

“Combining a bar into the space could add even more value,” explains Meagher.

Ryan Dossey, co-founder and real estate expert at SoldFast in San Diego, suggests you think less about what you're updating the space for and more about the updates to the space itself. 

Home theaters and "sports dens" are usually found in finished basements and outdoor living areas—both of which are popular features for homeowners. 

“In these cases, you're also adding more finished square feet and/or making the backyard more functional,” says Dossey.

Keep in mind that while wet bars, massive sound systems, and theater-style seating are fun to have, they come with a lot of upfront costs. They're also more likely to require bigger utility and structural changes. 

“You'll find plenty of potential buyers who are interested in these features, but not to the point they'll pay a higher listing price,” explains Dossey.

What to consider before splurging on Super Bowl-inspired upgrades

Before you dish out thousands on a home theater and related improvements, consider your long-term goals.

“If you plan to spend the next 10 to 20 years in the home, go all out and do whatever makes you happy. However, if you want to maximize resale value, think twice. You’ll want to make sure your space appeals to a wide variety of people,” says Meagher.

In the event you’ll likely stay put for a while, consider your lifestyle. Is your family into TV and movies? Do they love to host?

“If you can utilize the space beyond just sports, you may be able to further justify the investment. A true entertaining area would add a lot of functionality and value,” adds Meagher.

Additionally, if you’re in a fast-growing, single-family suburb just outside of major metros like Dallas-Fort Worth and Chicagoland, for example, the upgrades may be worth it—regardless of whether you think you’ll sell.

“Not only are these markets the best prepared for growing families with more disposable income, but they're also where a lot of the big NFL and NBA teams are,” explains Dossey.

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Stevan Stanisic

Stevan Stanisic

+1(239) 777-9517

Real Estate Advisor | License ID: SL3518131

Real Estate Advisor License ID: SL3518131

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