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People's expectations have been raised by the bubble and by the home improvement programs spawned during that era. We have a large disparity in the sale prices between identical houses in our neighborhood in the last two years because some homes had updates to their interior while others did not. Even one that was remodelled did not price at the market since the changes didn't match the buyers' tastes. The homes that met market expectations sold for 130-150 thousand dollars higher.
I have a neighbor that's going through the process of deciding whether to remodel. They've been told by a relative, who's a general contractor, that it'll cost 150 thousand dollars to renovate the house. They can either decide to mark it down by a similar amount or make the changes before they move into a independent living community.
I see that a lot including where I live. On the same side of the street with eye sight there's almost a $200,000 spread between the highs and lows in less than a decade. Everyone thinks there sitting on gold either trying to play the zip code game or not looking at reality comparing apples to oranges. Also some resent the flippers/cash buyers so they refuse their offers. But they offer more flexible and cleaner transactions. We had a seller finally dealt reality by contractors who shave another 20% off a home already listed about 40% off the high end of the market. The house sat for 6 months and had 4 reductions on a 'discounted' price for that area.
People's expectations have been raised by the bubble and by the home improvement programs spawned during that era. We have a large disparity in the sale prices between identical houses in our neighborhood in the last two years because some homes had updates to their interior while others did not. Even one that was remodelled did not price at the market since the changes didn't match the buyers' tastes. The homes that met market expectations sold for 130-150 thousand dollars higher.
I have a neighbor that's going through the process of deciding whether to remodel. They've been told by a relative, who's a general contractor, that it'll cost 150 thousand dollars to renovate the house. They can either decide to mark it down by a similar amount or make the changes before they move into a independent living community.
because renovation cost $150K, it makes sense that the renovated houses are being sold for 150k higher. the number balances out. IF I was a seller, I would do minor renovation & lower the price. Less headache. But as a buyer that renovation does make huge difference. We think we don't care but when we see the latest/newest work & then compare to a house not so updated, you just don't feel satisfied going for that not so updated house. Most buyers don't have imagination of their own & would rather not take on the headache.
People's expectations have been raised by the bubble and by the home improvement programs spawned during that era. We have a large disparity in the sale prices between identical houses in our neighborhood in the last two years because some homes had updates to their interior while others did not. Even one that was remodeled did not price at the market since the changes didn't match the buyers' tastes. The homes that met market expectations sold for 130-150 thousand dollars higher.
This is why I would rather leave the renovations to the new owner. Why should the seller, who is leaving, suffer through the stress of having all that work done? The new owner may hate parts of it and change it again anyway. It's a waste of time and money. I've seen it many times, on my own block. Smartest thing to do around here is take the price down a bit and tell the buyers to choose their own paint, flooring, etc.
This is why I would rather leave the renovations to the new owner. Why should the seller, who is leaving, suffer through the stress of having all that work done? The new owner may hate parts of it and change it again anyway. It's a waste of time and money. I've seen it many times, on my own block. Smartest thing to do around here is take the price down a bit and tell the buyers to choose their own paint, flooring, etc.
I hear this often. I get why people stage a home but in reality most know it's a show. Only so much lipstick one can put on a pig. But people buy it.
Sometimes the cost of renovations offset any additional profit. I think the bubble/boom made a lot of flipper want to bes. I've read many articles where they say most people get into trouble with flipping by over spending and over doing it period. But you have that darn hgtv. It's amazing how people get wrapped up in the show and when they do it in real life.
People's expectations have been raised by the bubble and by the home improvement programs spawned during that era. We have a large disparity in the sale prices between identical houses in our neighborhood in the last two years because some homes had updates to their interior while others did not. Even one that was remodelled did not price at the market since the changes didn't match the buyers' tastes. The homes that met market expectations sold for 130-150 thousand dollars higher.
I have a neighbor that's going through the process of deciding whether to remodel. They've been told by a relative, who's a general contractor, that it'll cost 150 thousand dollars to renovate the house. They can either decide to mark it down by a similar amount or make the changes before they move into a independent living community.
Why would that be marking it down? Do they really think it would rightfully be marked up to the level of houses that have undergone major improvements? Why would anyone elect to put "X" dollars into a renovation if the value would only go up by the same amount and in doing so would limit the buyer pool by the style choices made?
because renovation cost $150K, it makes sense that the renovated houses are being sold for 150k higher. the number balances out. IF I was a seller, I would do minor renovation & lower the price. Less headache. But as a buyer that renovation does make huge difference. We think we don't care but when we see the latest/newest work & then compare to a house not so updated, you just don't feel satisfied going for that not so updated house. Most buyers don't have imagination of their own & would rather not take on the headache.
Quote:
Originally Posted by Teacher Terry
Silly to do renovations because no guarantees you will make back your money. We actually prefer to update homes ourselves.
Quote:
Originally Posted by saibot
This is why I would rather leave the renovations to the new owner. Why should the seller, who is leaving, suffer through the stress of having all that work done? The new owner may hate parts of it and change it again anyway. It's a waste of time and money. I've seen it many times, on my own block. Smartest thing to do around here is take the price down a bit and tell the buyers to choose their own paint, flooring, etc.
As a General, I often 'talk myself out of' work when a potential seller wants to do a pre-sale remodel. I have just seen too many new buyers tear out a completely new remodel because they don't like the style/color/location/etc......but this is in a wealthy area....
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