The upgrades in your home today may not make your home more valuable! They may however make your home more marketable, and based on where your home is located, that may be helpful.
I often find myself in a debate with other real estate professionals and home owners themselves, about the value of their listing or their property, and why they believe it’s worth so much more than the other properties either on the market or those that have just closed escrow. The conversation often goes something like this… “My home is worth $50,000 more than that home because it’s upgraded and it has xyz compensating factor. Most of the time, it’s granite counter tops, stainless steel appliances, and hard wood flooring… or something very similar to this. For the purposes of this article… let’s stick with granite counter tops, stainless steel appliances and hardwood floors.
This was a great argument 10 years ago when none of the homes on the market had granite counter tops, stainless steel appliances and hard wood floors; however, today, that just doesn’t hold true. Granite counter tops, stainless steel appliances and hardwood flooring are common in the homes that are listed for sale. In fact, you couldn’t buy a Lennar Home in 2007/2007 without those upgrades as it was included in all of their homes! Don’t believe me? Click here and view every home for sale in Serafina, which is a great gated community in Eastvale so that you can see for yourself. Please don’t get me wrong, these are great enhancements, great features and benefits; yet, it simply may not make your home more valuable than the most recent sale!
The next argument is that this is newer construction… the same doesn’t apply to an older home in an older more established neighborhood. And while I agree with the logic, I simply don’t agree completely with the statement. If we take an older neighborhood in Anaheim Hills… we may find very similar findings… Here is a snapshot of a random tract home in Anaheim Hills off Imperial Highway and Santa Ana Canyon Rd. (At this minute in time, there are 4 active listings… all of which have granite counter tops, 3 of which have stainless steel and only 2 appear to have hardwood flooring. Nonetheless… all of them have granite in the Kitchen!)
When the market gets a little shifty, like now, these homes may sell faster than those without the same or similar improvements, yet they may not sell for a lot more money. If you are looking to make the most of your home improvements, HGTV.com has a great article for making improvements that get your money back. When time allows, this is a worthy read.
Bottom line… Improvements don’t always make your home more valuable. Listen carefully to your real estate professional on both sides of the negotiating table, and work with a professional, like me… one that stays in touch with trends, values, and changing market conditions.
Give me a call today at 714-746-8103 should you have any questions, or send me an email via our contact page, and feel good knowing that we will get back to you shortly. Thank you for your time and continued attention.
Thinking about buying or selling a home in North Orange County? Visit every home for sale in Southern California at www.JeffreySimonsAndAssociates.com… or contact us right now for a free, no obligation preliminary market analysis of your home.