The difference between a selling point and a price adjustment!

Reblogger Gabe Sanders
Real Estate Agent with Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales 3090099

Many sellers, today, consider their homes to be significantly more valuable because of some of the updates/upgrades they have performed.  Sometimes, they can add value, but more often than not it's considerably less than the seller thinks it's worth.

The good news, is the home will normally be more attractive and more desirable with these improvements.  Richard Weisser gives us a great post about this subject:

Original content by Richard Weisser

Upgrades do not necessarily affect the price of a property!In the HGTV era of real estate sales, I run into a lot of sellers that insist that every upgrade that they have ever made should increase the value of their home.

However, here in Coweta County Georgia, that is simply not the case. Stainless steel appliances or granite countertops or hardwood floors may really make a house stand out. And a well maintained home with many upgrades may be just the thing to prompt a fence-sitting buyer into action.

But these enhancements do not translate directly to price. And while they may garner a modest premium by narrowing the degree of wiggle room in the negotiation process, the rate of return on expenditure is fractional.

And many items, such as a new roof or a new HVAC system are maintenance items, and do not add value either. Buyers expect a roof and an air conditioner when they purchase a property, so these details are indeed inducements but may not affect the market value of the property.

Homeowners should only consider upgrades for their personal enjoyment and lifestyle, and not as an investment. And they should perform all necessary maintenance as it is warranted.

The bottom line is the bottom line! And there is no workaround for over-improvement.

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All content, including text, original art, photographs and images, is the exclusive property of Coweta Fayette Real Estate, Inc., and may not be used without the expressed written permission of Coweta Fayette Real Estate Better Homes and Gardens Metro Brokers, Newnan Georgia. All information is believed to be accurate but is not warranted, Copyright 2003-2009. Richard Weisser REOS, E-Pro. licensed Auctioneer. 770-827-6225.
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Rainmaker
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Dawn Crawley
Dawn Crawley Realty - Pinehurst, NC
Find Pinehurst Homes

So true. I went to a listing appointment the other day, and the seller had done many upgrades, but she only purchased two years ago. I told her that the upgrades may, at best, have helped her home from losing value from the original purchase price.

Nov 23, 2010 12:55 AM #1
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838,676
Charlie Ragonesi
AllMountainRealty.com - Big Canoe, GA
Homes - Big Canoe, Jasper, North Georgia Pros

Thanks for the repost . I missed this the first time. There are infact many upgrades like granitie in a house priced under 200k that just do not make sense. Richard is right about adding pizzaz but maybe not much to the price tag

Nov 23, 2010 01:02 AM #2
Rainmaker
290,212
Ellie Penaranda
239.776.5077 Downing-Frye Realty - Naples, FL
Naples Florida Real Estate - Waterfront & Beach Co

It hurts when the upgrades are very recent & the costs are fresh in their minds.  And worse is when they go upgrading for the purpose of selling before they call a Realtor.  Thanks for sharing.

Nov 23, 2010 03:34 AM #3
Rainmaker
4,797,811
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Thank you for stopping by and taking the time to read my re-blog.

Jul 07, 2015 04:13 AM #4
Rainmaker
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Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Hi Dawn, thanks for taking the time to comment it is always appreciated.

Mar 20, 2018 06:32 AM #5
Rainmaker
4,797,811
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Hi Charlie, thanks for taking the time to comment it is always appreciated.

Mar 20, 2018 06:33 AM #6
Rainmaker
4,797,811
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Hi Ellie, thanks for taking the time to comment it is always appreciated.

Mar 20, 2018 06:33 AM #7
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Rainmaker
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Gabe Sanders

Stuart Florida Real Estate
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