I want to sell my house next year. I bought it from someone who did nothing to improve the home or property while she lived there, so I made a lot of improvements to it in a short period. I put in new flooring throughout the house, bought a new boiler, put in new blinds, touched up the exterior paint job, and improved the landscaping. I've only lived here a year and a half, and the improvements totaled over $20000, so there will be a jump in my asking price. For potential buyers who see this price jump in the selling history, will they understand (or be told by the realtor) why the cost of this house went up between the time I bought it from the past owner and now? Are these improvements the type that will be noticed? My biggest concern is that I put all this money into improving the property and I could somehow lose money, because the potential buyers won't like/understand how the price increased in such a short period.
2007-07-04 06:33:48 · 7 answers · asked by Jen1943 1 in Business & Finance ➔ Renting & Real Estate
As long as your asking price is justified by the current market conditions you should have no trouble whatsoever.
However, if you the market says your home is valued at $150,000 and you ask $170,000 because of what you have invested into the property then you may have a problem.
Good luck!
2007-07-04 07:05:16 · answer #1 · answered by jimmy dean 3 · 1⤊ 0⤋
While there is such a thing as over-improving a property, I don't think you need to worry about that. It sounds as if your improvements have been standard ones that have enhanced the property and will therefore enhance the experience of anyone who eventually lives in it. (I can tell you that improvements to the kitchen and baths statistically yield the biggest returns.)
Ultimately, your Realtor will be recommending a price that is realistic to your home's location and the local market. Hopefully, it will reflect the upgrades you've made. Also, your Realtor wants your home to sell as much as you do so you can be sure that he/she will be "play up" those improvements in their property listing and when the home is shown, assuming your Realtor is good at their job.
Overall, don't worry about the price history. What a buyer will focus on is whether or not your asking price reflects the value of the home and all associated variables, and fits their budget.
Of course, a potential buyer could reference the price history of your home when arriving at their offer, but by knowing what enhancements have been made and realizing that property values do go up, they'll probably be realistic. If not, wait for the offer that is!
Hope that helps!
2007-07-04 07:10:12 · answer #2 · answered by Darling J 6 · 0⤊ 0⤋
I have bought four homes in two different states. Never did I bother to check on what the seller paid for the house when he/she bought it. I do not think what you initially paid for the house is an issue.
The improvements you made to the house were to improve your and any further buyer's living conditions. A new buyer's offer will reflect the improvements in the condition of the house you have made.
There may be additional low cost improvements you can make to increase the value of your house. Interview with a couple of local Realtors now, and ask what sell price they would recommend for your house, and then ask what additional improvements do they suggest you make, to increase that sell price.
Then you can decide if it would be worth the effort and expense.
Good Luck,
2007-07-04 07:26:52 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Some people want to know what the buyer paid for a property, but that is not very frequent. But your agent should be able to explain the improvements.
Some improvements are not a good return on your investment. HGTV's website has some great articles on where to invest your money on homr improvement for maximum returns.
http://www.hgtv.com
2007-07-04 08:07:01 · answer #4 · answered by godged 7 · 0⤊ 0⤋
Nice, new things are always noticed. They make a house show better. Do they increase the VALUE of the property? Not usually. Things like totally remodeled kitchens & bathrooms and adding square footage will increase the value.
Save your receipts. Most of the $$$ you spent can be deducted from your federal taxes when you sell.
2007-07-04 06:52:25 · answer #5 · answered by Sharingan 6 · 0⤊ 0⤋
It sounds like you are unintentionally house flipping. When you bought the house, unless you paid more than you should've, you paid for beat up floors. Now when you sell the place whoever buys it is going to be paying for new floors. If you went and repainted the outside and redid the landscaping then you're increasing the "Curb Appeal" and that'll get more people in there.
2007-07-04 07:01:43 · answer #6 · answered by Joe 4 · 0⤊ 1⤋
Major improvements like you mention can be detailed in the listing and in any ads.
2007-07-04 06:58:41 · answer #7 · answered by Judy 7 · 0⤊ 0⤋