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Comps & Selling A House

Discussion in 'Off-Topic' started by Lignum Vitea, May 26, 2019.

  1. Broccoli Iglesias

    Broccoli Iglesias NES Member

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    This. When I bought my place, it was all brand new. All the appliances still had the tags hanging, new kitchen, bathroom, paint, new hardwood floors....

    F*** yeah, I didnt have to do anything.

    And the way it was done, it was good. Nice light/neutral colors (the way I like it).

    I am now making some small changes, but only because I want to and I'm a little bored. Lol.

    If I had to dump a bunch of money on the kitchen and bathroom I would have walked away.

    It was around $10K more than other places and the first bank wouldn't lend because the appraisal was low by $10K. The second bank gave me a better rate and appraised it above asking.

    The first bank also compared with places that didnt make any sense, almost like someone was tired and just wanted to get the appraisal over with.
     
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  2. Stape

    Stape

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    I sold my place in CT in 2015. At the time my area had a bunch of older folks who were selling and heading south. Their houses were long paid for as they had been there ages, and they just wanted to leave so they weren't really going after every dollar they could get.

    Meanwhile, here I am, going room to room in my house tearing it down to studs and sub-floor, and completely rebuilding/remodeling every single room until I finished.

    When it was all said and done, 17k in windows alone with transferable lifetime warranty, new solid 6 panel doors throughout, new solid wood entry door, new furnace/oil tank, new wood stove, new septic system, upgraded electrical, plumbing, pretty much every single square inch was redone to my liking.

    While we enjoyed a nice home for many years, there was no way we were going to recoup what we had into it. I did all the work myself, so I saved a ton only being out materials.

    When we went to sell, we set the price and our neighbors laughed and rolled their eyes. People who viewed the house would say "the house across the street is 20K cheaper" and my reply would be to buy it, then spend 50, 60, 70K upgrading it to be like mine.

    Many homes in our area were on the market for over a year, but ours sold in a few weeks, for what we were asking.

    It does kinda irk me that all my hard work and subsequent sale upped the value of my neighbors old ass - locked in the 70's, ugly ass houses
     
  3. CrackPot

    CrackPot NES Member

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    As with guns, never pay for other people's upgrades.

    Presumably you made the upgrades to the house because you wanted them. If you made them so you could make money on them, then you did not do your research. Adding a bathroom adds value. Adding square footage with an addition adds value (its just area * price/sqft math afterall). Adding rhinestones to all the walls does not add value. Keeping the house up to date does not add value. Failure to keep it up to date can decrease value.

    The more "special" your house is, the longer it takes to find a buyer and sell. The more you treat it like the commodity it is, the easier to find a buyer and the faster it sells. It is, after all, just a commodity. The buyer is looking for a 4 bedroom, 3 bath house within 10 miles of a certain location. After that...
     
  4. Dennis in MA

    Dennis in MA NES Member

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    I feel'ya. Had a rental. It was perfect. I had lead certs, everything was proper. I had 2 bad tenants, lost about 5 months rent in total and then just sold the F'er. While I think some states are too landlord-friendly, Mass is WAAAAY too tenant-friendly. I had all my ducks and got what I wanted, but getting rid of a deadbeat tenant STILL was 5 months, start-to-finish. Cash for keys would have been faster and cheaper in the long run.

    I still drive by the place. It's a great 2-family in a nice neighborhood. And I'm so glad I don't own it. LOL
     
  5. jek

    jek NES Life Member NES Member

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    When I sold my last house I dunped the realtor and did it myself. The realtor said we had the best house in the neighborhood, but that didn't matter when it came to the price. I ended up asking for $30k more than the realtor comp, which I believe was ~$100k over town assessed value. We ended up getting our asking price.
     
  6. George D

    George D NES Member

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    Ultimately, something is worth what someone is willing to pay for it. I have had appraisals come in low and the seller dropped the sales price, and I have had them come in low where the seller didn't budge and the buyer came up with more cash. The upgrades need to match the house, it's really easy to over improve.
    You can't take a $3,000 truck, add $3,000 custom rims and ask $6,000 for it. No one care what you paid for rims. The same happens with homes. If you have a $400,000 home and do a $100,000 kitchen renovation, the house isn't worth $500,000. It's maybe worth $425,000, which is why you never want to over improve for the neighborhood. People that want to live in neighborhoods of $500,000 houses live in neighborhoods of $500,000 houses. They don't want the split level that someone added a second floor onto in a neighborhood of $325,000 houses for $500,000. The biggest loss of return on investments I see are pools and detached outbuildings. You do that because you want those things, not to get resale value.
     
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  7. Dennis in MA

    Dennis in MA NES Member

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    People with pools always think everyone wants a pool. I had a pastor once make the same reference to those who smoke theMJ. He said that dope smokers think everyone's a dope-smoker b/c that's all they hang around with.

    Pool owners think everyone wants a pool b/c THEY want a pool. My neighbor is selling some time in the next year or so. Inground pool in his back yard. NO FREAKIN FENCE! (Hasn't had it since they put it in 15 yrs ago.).

    Guess who's going to be forced into putting up a fence.

    Oh it gets better - last year he put in solar. KNOWING he was moving. "Oh, it's $24K but after all the rebates, it only cost me $6K." :rolleyes: He thinks it's going to add $25K to his price. It won't add the $6K. Now someone has to worry about the solar going out and if the roof is OK. That outstrips the $100/mo or so he saves on electricity.

    Paint. Clean up your yard. That's it.
     
  8. George D

    George D NES Member

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    I almost didn't buy my house because it had a pool. Fortunately it was an above ground so when it started to fail I tore it down. I had a client spend about $75,000 on their pool a year or so ago. The appraisal I have from March shows it added $10,000 in value. I went through the same thing with the solar. It was going to cost me $50,000 and the rebates/buyback, whatever were going to pay for the loan so I would have zero out of pocket cost. I then asked the guy what would happen if I sell in 5 years with this lien on my house, since I couldn't possibly ask $50 more for my house just because it had solar panels on it.
     
  9. drgrant

    drgrant Moderator NES Member

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    The best way to not get f***ed in a house transaction is to move as little as possible only to upgrade, and then any house you want to look nice, plan on dying there which renders the resale value
    irrelevant.

    -Mike
     
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  10. Lignum Vitea

    Lignum Vitea

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    My house just went under contract, on the market for 3 weeks. We got what we wanted for price. Plus the buyers are willing to wait until our home in TN is finished.
     
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  11. SpaceCritter

    SpaceCritter NES Member

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    There are several and many other problems with common rooftop home solar systems as well, which cause net negs in terms of resale.
     
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  12. GaryO

    GaryO NES Member

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    I'm having the asbestos siding removed and going with the PVC shakes. Going to cost 30+k but I plan on being here for another 8 years...35 years total. I'm just sick and tired of looking at some broken siding and figure it won't hurt the resale value.
     
  13. SpaceCritter

    SpaceCritter NES Member

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    The problem is life tends to intervene. Could be an unexpected illness, say. In the case of older Connecticut residents, it's... well we all know what it is. I don't think many thought it would get as bad as quickly as it has.

    Presently hoping New Hampshire won't follow suit. Not encouraged by the Donktitude I'm seeing there lately.
     

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