Return on your investment: Sellers expect it; Buyers ignore it.
"I want money back when I sell to pay for the redecorating", said the home seller.
HA!
I have yet to see appraisers give much value for condition of a normal home. They simply say condition: fair or good, etc.
They do however compute and compare square feet in the subject properties and comps.
What good condition does is help the seller sell with few "conditions".
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Added value, return on investment. These are the concepts home owners (eventual sellers) expect when they do something to their home.I have been asked many times about how much a pool will add to the value of a home. My response is always something like...put in a pool if y
ou are going to use it.
While at a listing appointment recently I was impressed with the condition of the older home. The seller had recently installed a new air conditioner ($7,000) and a new roof ($11,000).
These were necessary maintenance items. These were necessary lifestyle accommodations - especially in Florida.
Prospective buyers will appreciate the new air conditioner. They will find comfort in the recent roof replacement.
While I am doubtful buyers will give anywhere near the "full value" in their offer price this I feel confident about:
- The selling price should be higher than a property with an older roof.
- The selling price should be higher than the same property with an older, less energy efficient, air conditioner.
However, to expect a full return on the investment would be pie in the sky thinking. Your real estate agent should promote these features in their marketing. Prospective buyer agents should make sure the features are brought to their client's attention. Real estate professionals are, at themost basic level, sales people who are paid to sell.
Still, if you are looking for a dollar for dollar return on the "added value," don't. And, while buyers expect home owners to maintain their home, these items will result in a higher selling price than a neglected property.
Rather than looking at any potential return on home maintenance homeowners should consider this when it comes to repairs....Why are you considering doing these projects?
A more important consideration is to consider the cost of deferred maintenance. Deferred maintenance will translate to less value to prospective buyers.
Ready to buy or sell a home in Melbourne, Florida? Call me at 321-693-3850 or send me an email.Image courtesy of renjith krishnan at FreeDigitalPhotos.net
Gary L. Waters, Florida licensed real estate broker/owner Waters Realty of Brevard, LLC, Melbourne, Florida serving Florida's Space Coast including the cities and communities of Melbourne, Viera, Rockledge, Suntree, Merritt Island, Cocoa Beach and the surrounding region.
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