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The Four Worst "Upgrades" Homeowners Make

By Doug Rogers

Real Estate Agent with RE/MAX Coastal Properties BROK.995683208

March 13, 2013 01:25 AM

The Four Worst "Upgrades" Homeowners Make

Pineville La Real Estate

This post has nothing to do with personal space, taste, or comfort. One of the benefits of home ownership is NOT having to get permission to make changes to your space. Instead, let's examine five upgrades that typically return little to no investment at the act of sale.

1) The Swimming Pool-- Recently I went on a listing in a subdivision of 200k dollar homes. The owners could not wait to show me their sparkling new cement pond. How much did you "invest" in this project I inquired? Only 45,000 dollars! And wouldn't you know it, they wanted to ask 260k for their home. At closing the pool commanded a 7k dollar premium. In other works the sellers spent 45k and earned 7k. In my mind that's a 38k dollar loss!!!!

2) Nothing makes a better den than the garage-- I cringe when sellers call me to come look at their 1800 sq. ft home in a subdivision of 1400 sq ft homes. What does this mean? Is the home taking banned growth hormones? Nope, the garage is now a "play room". Where do guests park their cars? In the front yard of course! Want extra credit? Don't hire a professional contractor and do the conversion yourself. I could write a book on this one...

3) Granite Counters in a Formica Neighborhood--I once toured a STUNNING 75k dollar kitchen, in a subdivision where the average price was 135k! Need to cook the perfect beef wellington? This kitchen had you covered! The home eventually sold as a short sale for just over the subdivision average. The loss on this project could have bought the owners a new BMW.

4) Any Update That Requires Borrowing Money-- Even the best updates struggle to provide a dollar for dollar return on investment. Thinking of taking out a loan, or goodness forbid opening a credit card to renovate? JUST SAY NO! Credit card interest is not your friend.

Want to sell your Pineville La home for top dollar? Clean, take care of the lawn, and fix what is broken. Price based on condition and move on. Need specific advice for your property? Call Doug Rogers (318) 613-1994 or click LouisianaHouseHunter.com

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Brian Rugg

Rugg Realty LLC Sun City Texas 512-818-6700 - Georgetown, TX

Sun City TX Real Estate - Georgetown, TX Real Est

Hello Doug: Great post and a great feature. I generally tell folks 50 cents on the dollar for renovations, some more, some less. Sometimes renovated homes sell faster ( if they are well done) but not for much more money.

Mar 14, 2013 10:30 AM

Richard Dolbeare

Inactive - Wailuku, HI

Living the Hawaii Lifestyle

Your #2 is the big one here in Hawaii. And often there are no permits in place.

Mar 14, 2013 11:24 AM

Rajeev Narula

iPRO REALTY LTD.,Brokerage - Mississauga, ON

My Services Are All About You!

Doug, I think this is probably the best straight forward honest advice i have read on this subject. Great job!

Mar 14, 2013 11:40 AM

Sharon Parisi

United Real Estate Dallas - Dallas, TX

Dallas Homes

Doug, all I have to say is WOW! Look at all the responses to your post! Your post contains valuable information for all homeowners..

Mar 14, 2013 03:25 PM

Monique Ting

INET Realty Honolulu, HI - Honolulu, HI

Your agent under the sun

Great post Doug! Another big mistake is over personnalizing a homeI I once showed one where the owners had installed a jacuzzi in the middle of the family room... my clients were NOT impressed! Aloha!

Mar 14, 2013 07:08 PM

Anonymous

lisa zemack

Love the post and love your sense of humour too! can add a few of my own:

japanese garden in a low priced area, difficult to maintain water falls and fountains, low roof shed attached to the side of the home making it into a long train, added garage in the front of the house. Ha ha. Have seen it all. Thank you

Mar 14, 2013 11:37 PM

#163

Phil Hopkins

Desert 2 Mountain Realty - Payson, AZ

PaysonAZRealtor

I see a lot of garage conversions in my area and just love them....yeah, right. I've got an investor that's flipped about 2 dozen homes in the last 3 years. Some of their best ROI was buying low on the house with the garage conversion, then putting it back like it was. And Dimitri, I think I need to come over and hang out for an afternoon.

Mar 15, 2013 05:36 AM

Anonymous

Bobi ~ Advertising, Marketing

#3 - I know what you mean here... I wanted to upgrade my kitchen with granite countertops but I'm not sure if the neighborhood is strong enought to support it.

Mar 15, 2013 06:17 AM

#165

Gijs Van Breugel

TERRA FRANCE | International Estate Agents for France

TERRA FRANCE | International Estate Agents

This makes for an international post, because your remarks are valid all over the world, including here in France. And the owner's thoughts and misthoughts about work to be done before selling are apparently universal ...

Mar 15, 2013 09:39 PM

Dimitri Matsis-REALTOR® (818) 599-6083

Troop Real Estate Inc. Westlake Village CA - West Hills, CA

@ #148, 165 Phil,

You’re welcome any time. Also, I forgot to mention, there is always some good Jazz playing while I’m doing my thing. Come on down!

Mar 16, 2013 03:42 AM

Deleted Account

Fort Myers, FL

I keep trying to tell people this everyday! Do they listen? No, they don't and want to tell them I told them so, but have to hold back.

Mar 16, 2013 08:48 AM

Marilyn Boudreaux

Marilyn Boudreaux, Century 21 Bono Realty - Lake Charles, LA

Lake Charles LA Century 21 Realtor

sellers quickly understand over improvement as soon as the appraisal comes in

Mar 16, 2013 02:40 PM

Trisha Bush-LeFore

Preferred Properties Land & Homes - Walla Walla, WA

Providing Realtor Services in the Walla Walla Area

It's a shame to think that most of the homeowners who go into these projects are so excited about getting more money from it, but when the time comes they end up being disappointed.

Mar 18, 2013 09:23 AM

Paddy Deighan MBA JD PhD

http://www.medicalandspaconsulting.com - Vail, CO

Paddy Deighan J.D. Ph.D

great synopsis and that is coming from someone that DID put granite countertops in a laminate neighborhood!!! LOL lesson learned!!

Mar 22, 2013 07:38 AM

Anonymous

Nancy Strabel,Keller Williams

Great Post. Another favorite is painting murals on the walls of the family members.

Mar 24, 2013 08:54 AM

#172

Elizabeth Y. Foulds

Long & Foster Real Estate - Saint Michaels, MD

Your St Michaels Realtor

Doug, so so true. I think borrowing to do the upgrades is the worst thing. That is why we had all these foreclosures in some neighborhoods! Many thanks for a great post.

Mar 25, 2013 03:46 AM

Wayne B. Pruner

Oregon First - Tigard, OR

Tigard Oregon Homes for Sale, Realtor, GRI

This is good advice. Having a pool, in my area, greatly reduces the number of interested Buyers.

May 20, 2013 12:20 AM

Susan Chron

Ocala, FL

Love this post! Thx...

Jul 09, 2013 01:20 PM

Kristin Hamilton CA REALTOR

Berkshire Hathaway California Realty - Beaumont, CA

(909) 557-6966- Specialize 55+ Communties Banning

Doug,

Fantastic post and your 4 items are perfect and right on.

Jul 14, 2013 04:46 AM

F U

nobody - Alamance, NT

Dead

Amazing how sellers believe every buyer wants to pay a higher price tag in a discount nation. Rule number one buy the worth house in the best neighborhood. Great post.

Jul 14, 2013 09:32 PM