Comments Off | Tuesday, May 4, 2010
Many homeowners are wondering if they should upgrade in a down market?
So a potential seller tells me he is thinking of upgrading his property in this market. Is it a good idea or not? He has lived there many years, over 20 and not done much; he wants top dollar for his home. I tell him about this property that sat on the market for over 6 months, a beautiful home, with S/S appliances and premium upgrades, a similar situation to his, the homeowner decided to take out some equity and upgrade the home before selling.
Well much to his disappointment the home sat on the market for 6 months; He gave two realtors a shot at selling it. He wants what he put into it (90,000 plus he has a loan on that property, so he is not going to net much. He must have his bottom line.
What do you make of all this? On the one hand you would think that move-in ready property should sell fast, in a good neighborhood like the one in this example. On the other hand, the increased cost of the upgrades may have detrimental effect on selling the home.
Now in a completely different type of market, (sellers market) these upgrades may justify a higher price and even bring in multiple offers; but in a buyers market, they might go wasted. Too bad, the house in my example is a real one, and beautifully staged as well; it sat there and no one wanted it……………for that price.
Then there is always being in the right place at the right time. Maybe it wasn’t the right time for this house to sell. It was out of place in the down market with
REOs and short sales to compete with………..
Pride reductions! What about them says the seller? Another price change? Why now? says the seller. It’s a great house. It will sell.
Then finally the offers start coming in …..slowly at first, then more…………but they are ‘not high enough’ for the seller. He wants more. He cannot make his bottom line after expenses of the sale…………….he threatens to rent the place……………
The home is a corner lot and has side access. In sellers opinion it’s the best one on the block and people should see the value in it. Still, the offers are ‘just too low’ what’s the matter with the buyers out there, don’t’ they see this is a beautiful home to raise a family? And in a great neighborhood with good schools too. What’s not to like!
In the end who is the winner? What about time spent and time lost? It’ time to walk away…………..for now.