The Benefits of Strong Neighborhoods and Strategic Upgrades16 Aug
In desirable neighborhoods, more upgrades equal more return on your investment. $12K of upgrades increased this home’s value by $40K. These upgrades helped lessen larger functional obsolescence items.
Ben and Kelly’s home undoubtedly had custom features and elite curb appeal, yet it also possessed a degree of functional obsolescence. The home had two stories, a small kitchen with an electric cooktop and a small backyard with no pool. Fortunately, their home was located in a luxury neighborhood with over comps so Jeff knew that upgrade investments would generate over a 2 to 1 return.
When buyers look at similar homes in the same price range, they will foremost notice the finishes and submit an offer for a home that stands out and that is supported by comps.
Our Design Team replaced hardware and fixtures, repainted some rooms and installed hardwood flooring in a main living areas, stairs and the loft space which created the greatest impact. Additionally, roof repairs were made. The upgrades cost between $12-15K and Jeff was confident they would bring in a $40-50K return.
When buyers tour a home in person, the odds of them accepting the outdated/less desirable features are much higher.
For this listing, we opted for our “minimum photo strategy” which leaves certain functional obsolescence items out of the listing photo gallery and highlights the upgraded areas in the home. Many good homes are quickly disqualified because buyers feel they have seen every nook and cranny, if too many photos are posted.
Jeff advised to list this property at $735K while the owner wanted to list at $750K. The home went under contract in under 19 days and sold for $725k. If listed at $735K, we most likely would have received an offer for $735K. Ben and Kelly ended up at almost 10% off their list price because they wanted to list above the $750K range. More often than not, when sellers invest time and money into their home, they tend to over shoot the true value of their home.