Real Estate Tip of the Day January 30, 2014
Think twice about over improving your home
You appreciate good things, the finer things in life, fine details and all the comforts that a home provides. You bought your home and upgraded to top of the line everything in your Kitchen, in your Bathrooms, your home’s flooring, your fixtures, your window coverings, your landscaping and oh, so much more. It’s your home and your demand the best.
When you look around the neighborhood, your neighbor’s home seems paltry in comparison to yours. You like being the cream of the crop, the King of the Castle, so to speak.
Now you’re thinking that you want to sell your home. You’ve been looking at recent home sales. You’ve noticed that the neighborhood home sales are coming in much lower than what you think your home is worth. You’re confident that your home will sell for more that what other homes are selling for and even when compared to the larger homes with more bedrooms. Why could these closed sale prices be so far off you wonder? Unfortunately, you likely over improved your home for the neighborhood. As discussed earlier, you chose the best of everything, as you worked hard and you can afford it, however doing so is never a good thing, if you’re concerned about resale value. Over improving a home that is located within a neighborhood where your home is the Castle of the neighborhood, will likely disappoint you when the time comes to put your home up for sale, as it will be extremely difficult to recoup your upgrade costs when none of the other homes had the high end upgrades, as compared to your home. This can result in losses to you, as most Buyers will not want to pay over market value just to get your home’s upgrades. They could take their money and buy in a neighborhood where similar features are more common and they wouldn’t be the King of the Castle, but rather the Queen of the neighborhood. Then, when it’s time for them to sell their home, they won’t be faced with the possibility of losses due to being over improved for the neighborhood.
Sometimes you like to be the King of the Castle, but when you’re selling a home, it’s better to be the Queen. Choose to be the Queen and not the King of the neighborhood.
Call me, Lynn Pineda, at 954-464-1100 and I’ll provide you with additional Real Estate tips. Or feel free to email me at LynnP@ImagineYourHouse.com.
Written by Real Estate Agent, Lynn Pineda. Keller Williams Realty. Jan 30, 2014.
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