Can you over build a home?

By
Real Estate Agent with Atlanta Communities 303302

Have you heard the old saw, You don't want to own the most expensive home in the neighborhood? Well, there is a lot of truth to this. When you go to sell this home all the comps will be lower priced, from smaller, less desirable homes. All these conditions will need to be adjusted for by the appraiser, and more importantly, the potential buyer.

What value do you place on the third fireplace? How about the 6th bedroom? Or, what about the fact that the home sits up on a hill overlooking the rest of the neighborhood? All of these characteristics have a value, both positive and negative. Up on a hill you say? Well, enjoy the walk every day up and down that steep driveway to get the paper or mail.

You can also over build a home. Let's say 15 years ago you bought an average sized home in your neighborhood. You then finished the basement...using imported tiles from Italy, hardwoods from Brazil, and a cool light fixture from somewhere in Europe. Then you went on to tear out the kitchen and put new everything back in. You have a great home now right? Who wouldn't give you all that money back when you sell?

The truth is, improvements to a home almost never get 100% of the cost back at sale. So when you are eying the next great thing for your home, make sure it is something you will enjoy, not just something to pump up the value of your home.

Posted by

Peter den Boer, Associate Broker, Realtor

Atlanta Communities Real estate Brokerage

 

Ph. 770.713.1545

www.denboerhomes.com

 

I write about daily life as a Realtor in the Towne Lake Community in Woodstock Georgia.

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Rainmaker
684,604
Pat Champion
Coldwell Banker Camelot Realty - Mount Dora, FL
Call the "CHAMPION" for all your real estate needs

Building a new home is always an option for home buyer's to get exactly what they want in a home. Thanks for sharing I hope you have a great day.

Oct 04, 2015 10:56 PM #1
Rainmaker
2,346,102
Roger D. Mucci
Shaken...with a Twist 216.633.2092 - Euclid, OH
Lets shake things up at your home today!

I've seen this happen too many times.  A friend of mine over built and over upgraded her home for the neighborhood.  She'll be in that house the rest of her life unless she wants to give it away.  She'll never get out of it what she put into it......and now it's even outdated.

Oct 04, 2015 11:29 PM #2
Rainmaker
525,593
David Gibson CNE, 719-304-4684 ~ Colorado Springs Relocation
Colorado Real Estate Advisers LLC - Colorado Springs, CO
Relocation, Luxury & Lifestyle residential

Peter,

 

People get caught up in HGTV fever and forget what you point out. Selective improvements can make a big difference but it is far too easy to go overboard.

Oct 05, 2015 12:38 AM #3
Rainmaker
4,432,093
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Thank you for the post. It is sometimes difficult to sell an overimproved house.

Oct 07, 2015 10:26 PM #4
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Rainmaker
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Peter den Boer

MBA,GRI, Associate Broker, Realtor
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