Picture this. You spent the last 10 years making improvements and high end upgrades to your home with the expectation that when you sell it, you’ll be able to recoup your expenses and make a huge profit!
You choose your Realtor , she or he tells you what your home can be listed for, and devastation sets in. Why? Because the dollar amount you thought you could sell it for is way out of the ball park!
It happens all the time. What I hope to help you learn is why this could happen and how you can avoid it in the first place.
What is Over Improvement?
An over improvement is when you make improvements to your home that are excessive in comparison with similar properties. When listing it for sale, your asking price will not be supported.
Tips for Avoiding Over Improvement
It’s all about your neighborhood…both inside and out
- Exterior additions to your home should remain in keeping with the neighborhood’s overall design scheme.
- Avoid lavish landscaping updates unless needed to be comparable to the homes in your neighborhood.
- Learn what the most common materials in the comparable homes are.
** If none of the homes in your neighborhood comparable to yours use granite in the kitchen and/or bathrooms, a granite upgrade will probably not warrant you the return on investment you’re hoping for.
- Finishing a basement may sound like a wise investment, but chances are you won’t be able to up your selling price to accommodate a good return if it exceeds the homes basements in your neighborhood.
- Use a Realtor who is very knowledgeable about the area. They will be able to show you the homes that compare to yours and what upgrades will warrant you the best return.
Your will only be able to sell your home for market value. If the improvements you’ve made exceed market value, you will not be able to sell at a higher price. To learn more about market value, read Teresa Cowart’s article: Why Could My Home Appraise For Less Than Market Value?
Note: If you do not plan to sell your home, there is no such thing as over improvement! You can feel free to make as many upgrades and personal choices as you wish!
Tina Israelson can be reached via email at firstname.lastname@example.org or by phone at 407-414-9718. Tina has helped people buy and sell their Central Florida homes for the last 13+ Years.
Thinking of buying a home? Real commitment, real results are not just words of a slogan, but my commitment to you. Your success is my success!
I service Real Estate sales in the following Central Florida towns: Orlando, Windermere, Longwood, Altamonte Springs, Maitland, Lake Mary, Casselberry, Oviedo, Apopka, Winter Springs, Sanford and Kissimmee.
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