A lot of times while on listing appointments or just in general conversation, I hear people commenting on what their home "should" be worth and all the reasons to support their theory. Before asserting my opinion, let me just say that buyers are the ones that determine the value of your home. It is what a buyer is willing to pay that determines how much you get, not any other factor. The buyer is influenced by comparable sales which their buyer's agent will no doubt point out to them; as your listing agent should point out to you.
The issue that puts certain sellers in a bind is that they feel certain things about their house should constitute more money in the final sale. While some things do, a lot of things do not. Let me explain. If you live in a neighborhood where all the houses are between $180K and $220K, 1800 and 2400 square feet, have vinyl siding, popcorn ceilings and solid surface counter-tops, when you sale your home you should look at those comps. Well, if you added fiber cement siding, smooth ceilings and granite counter-tops, it is very likely you will not recapture that money you put into your home. What happens is now your home does not conform. If your home is not like other homes in the neighborhood it is hard to compare it to any of them. Well buyers are not going to buy a home in your neighborhood that out-priced itself. In other words, if they want to buy a home with those features, they are going to a neighborhood where you usually see those features. These are vague examples, but the proof is in the pudding. Statistics.
For arguments sake I am going to use my house as an example. I put up a fence in my backyard and it cost us around $5,000. Now when I sell my house I cannot expect to get $5,000 more than an identical house next door minus the fence. WHAT IT DOES is make my house more attractive and more likely to sell than my identical neighbor who is selling at the same time.
When you are considering doing certain things to your home, look your neighborhood in general. Another example is if you are buying a home to flip in an area where most homes have laminate flooring and laminate counter-tops....DO NOT put granite counter-tops and tile flooring in......that is like putting lipstick on a pig or whip-cream on an onion. And if you didn't know this was coming....Please don't pay too much attention to the Real Estate Reality shows on TV....they are not that Realistic!! For more information please visit us here.
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