Investments Return on Maintenance Versus Cosmetic Items
16 AugSellers overestimate re-sale value for money spent on required upkeep items when determining their value of their home.
George was very eager to list his home in Los Portones because he had recently replaced the roof and air conditioning unit. These are great features but the home had older carpet and tile, dated countertops, and a damaged pool.
It can be difficult for sellers to understand the re-sale value of necessary/maintenance versus visual/cosmetic upgrades.
The investments George made were necessary maintenance items but these types of upgrades do not catch the eye of buyers the same way visual upgrades do. This creates a common frustration for sellers because they tend to want to sell their home for more profit when money has been spent on upkeep but buyers will usually pay more for upgrades they can see. George previously had his home listed in 2012 for $359,900 with another agent but this contract was cancelled. Jeff took on the listing in 2014 and went the home went on the market at listed at $385k. George’s home sold in 30 days at $375k.