I had an interesting conversation recently with a national reporter who was exploring the differences between how professional developers and individual homeowners approach home sales. Her premise was that developers have less of an emotional attachment and are more prepared to accept the market price, and by and large, that's true.
A major difference is whether the home was built with an eye to personal taste or to resale. Developers build to sell, so they're careful to include features that more than pay for themselves. Individuals focus on their own tastes without a regard to resale.
Being in the very high end of the market, I see a lot of homes that are so "personalized" that the features limit their appeal. For example, I've seen batting cages, bowling alleys, murals, all-glass external walls and endless other features that appeal only to a small part of the market. Some other features may not limit the market, but they may not add enough appeal to pay for themselves on resale. This might include such things as hand-painted wallpaper and exotic materials.
It all comes down to choice. If you're building or improving a property for your own personal enjoyment, then by all means, make it yours. But if resale value is important and you expect to sell within a few years, you may want to take a page from the pro's playbook and focus on improvements that add resale value. Otherwise, you could find that your cost and the market's valuation are two very different things.
Jason Vombaur- The "J" Team
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