My son (also a realtor) was checking out comps for a friend who wants to list his home. It's going to be a tight squeeze to pay commissions and still break even.
"He's made some improvements to the home, so he should be okay," my son said.
Well, that depends. If he added a pool, he may have spent $25,000, but that will net him $3,000 to $5,000 max on an appraisal. Even in hot, hot Arizona, a pool is seen as a negative by many buyers. It is seen as a danger to families with young children or as an added expense (water, chemicals) or added maintenance to busy home owners.
Did he choose to paint with designer colors--whatever that means? I have seen too many homes languish on the market because the sellers chose a "buyer specific" color that they love, but turns off 99% of the potential buyers. I am in the process of repainting a lime green bedroom right now in a home that one of my investors bought for way below market. I blame the lime green paint.
It turns out (happily) that he tiled the entire home with large, neutral tiles. That will be a huge plus in this market. For some reason, the younger buyers prefer tile throughout the home to carpet. Especially hot right now is the tile that looks like wood flooring.
Well, that was good news. I wish that more of my clients would ask me before sinking money into home improvements that will not translate into a higher sales price.
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