I had the opportunity to sit in on REData Center's presentation about the state of the Gwinnett County Real Estate Market for the 3rd Quarter at NAMAR (Northeast Atlanta Metro Association of REALTORS) on October 18th.
One of the findings that was presented wasn't a shock to me, but it was a shock to some of the other real estate professionals that were there.
Finishing a basement doesn't really add to the value of the home in the eyes of a buyer...
I know that there are all sorts of news stories about the RoI (Return on Investment) of basement finishes... among other things. Generally, they seem to give the seller credit for between 30 and 50¢ for each dollar spent. This might be true in the case of appraisals, but doesn't hold true for purchases.
In my experience, in talking with buyers and helping them prepare offers on homes, I have found that the basement is VERY important, but that the finish doesn't really impact the price that buyers are willing to pay.
The space represents potential. Often, the potential is "squandered" by the home-owner... meaning that they put in a media room when the buyer would have preferred bedrooms, or bedrooms when the buyer would have preferred a media room. Or they put in drop ceilings when the buyer would have preferred dry-wall... or any of a number of options.
The bottom line is that I would NEVER advocate for a home-owner to NOT finish their basement because of future plans to sell, but I WOULD caution them that they should do it because it fits THEIR needs and lifestyle. Don't expect it to pay back financially, but rather, expect it to pay back in the enjoyment of your home.
*another difference between appraisals and Comparative Market Analyis...*
Related articles
- Gwinnett County, GA, Market Report, August 2010 (gwinnettgarageguy.com)
- Sugar Hill, GA, Market Report, August 2010 (lanebailey.com)
- Norcross, GA, Market Report, August 2010 (lanebailey.com)
- Buford, GA, Market Report, August 2010 (lanebailey.com)
- Duluth, GA, Market Report, August 2010 (lanebailey.com)
- Lilburn, GA Market Report, August 2010 (gwinnettgarageguy.com)
- Suburban Atlanta School District Wins Prestigious Broad Prize (education.usnews.rankingsandreviews.com)
from LaneBailey.com
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