Adding a new roof to a house in North Park or any area of San Diego can be costly. Many times home sellers like to add the complete cost to the buyer. Many sellers believe because they just did this upgrade the buyer will reimburse them for it. However, value does not always equal cost. Value is what something is worth and cost is what one pays for something. We may want to think they are the same thing but they are very different.
Needs vs Wants
A roof is one of those things that falls under home maintenance and not something like a newly remodeled kitchen, featuring top of the line appliances. It is one of those things that you need to do eventually for the maintenance of the home but you don’t necessarily want to do. When a buyer walks through a home they are not looking at the roof or the pipes under the house to determine the value. Instead, they are looking at the open floor plan, or the gorgeous wood floors, updated kitchen and top of the line accessories. These are the things they want in their next house.
Buyers Expectation of Value
When a buyer walks through a home, they expect the electrical to be up to current code and they expect the sewer line to be working properly. They don’t expect to have to pay extra for these items to be up to today’s standards. That is of course if you are trying to sell your house for the highest possible dollar amount with a traditional sale to a retail buyer. If your home is in original condition or has deferred maintenance, then this is a different type of sale. In this case, doing less is more. There is a buyer for houses in all types of condition. The home simply has to be priced accordingly.
Higher End vs Lower End Value
A buyer in a higher-end market is typically more demanding than in a lower-end market. I don’t mean demanding in a bad way. What I mean is they are much pickier. They expect the home to have more bells and whistles, depending on the price point. The lower end market may not be concerned about central air, or an energy-efficient green home. They are not looking for top of the line appliances.
What Is The Value Of My Home
Let’s say you add a new kitchen that cost $50,000 in a home where homes in that area are selling for $500,000. Imagine you add that same kitchen to a home where homes are selling for $1,500,000. The value of the remodeled kitchen would be a lot less in the $500,000 home because homebuyers in that area do not expect such a high-end kitchen. You would have over-built for the neighborhood. You could remodel a kitchen in that area for $25,000 and the home would still sell for the same selling price.
If you are thinking about remodeling your home but have concerns about the resale value, contact the McT Real Estate Group. We are happy to have a phone conversation and answer whatever questions you may have.
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