Gananoque, On
Of course you want to display your good taste to the world . . .
You want to be known as the trend setter . . .
Of course you can afford it . . . Money is no object!
Unless you are planning on flipping your new investment property.
Then none of the above applies!!
Yesterday. I was approached by an out of area Buyer wanting to invest in a property local to me. There is some TLC required but structurely, the house is solid.
The Buyer starts listing all the things she wants to do with this property and, because her list is so lengthy , she expected the Seller to come WAY down in price.
Did I mention the home is already listed below market value?
So I ask to look at the list of improvements the Buyer thinks is necessary to flip this house and I see items such as:
- Exotic hardwood flooring throughout
- Granite counters
- Glass enclosed steam shower
- Custom cabinetry
Everything to make the home look shiny and pretty and new! (This was on top of a new roof, new windows and doors.)
Now improvements such as this would all be fine and well in the city or even in some of our high end rural areas but where this property is situated, there wouldn't be any possibility of this reselling for a profit (it wouldn't even break even)
I took the Buyer on a little tour, compliments of my ipad2, and showed her properties that had sold in the past year as well as any comperition currently on the market in this area . . .
Boy was she shocked!
Her argu
ment was:
"if we make it really really nice buyers will be fighting over it . . . everyone wants a soaker tub in these stressful times"!
My response was "no, if they could afford the price tag you're considering with all the upgrades, they would not be looking in this area - they would want to live over in ABC development. This is where first time buyers and new families are looking and they can't afford your taste!"
This house was already listed below market value considering the condition and the location. It needed basic upgrades but nothing fancy smancy!
Save all the latest trends for the home you're going to live in.
I am happy to say my buyers listened to me are purchasing this property to flip with a specific buyer pool in mind. AND, they are also going to buy another in an area where they can incorporate some of their own tastes and ideas a little bit more.
The rule of thumb is always upgrade to the condition and price the average buyer can afford for that specific area and save your best ideas for your own home!
If you are looking for an investment property or perhaps a home, I can help you buy or sell in various markets; give me, Susan Emo, a call. 
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