It's a shame when a seller puts so much into a house and then doesn't get credit for it. Tony Grego's post says it best though. While there are some upgrades that do count, there are some things that need to be done prior to listing your home that will not. Don't don't read this to mean, they should not be done. Items like painting and landscaping are necessary for buyers because they want to move into something that doesn't need work. But sellers should carefully consider where to put there money prior to overupgrading. Consult a realtor with your upgrade questions.
Do you feel that pricing a home is a little like throwing darts these days? Sometimes you hit, most times you miss?
At the end of the day Realtors have a next to impossible job trying to help clients price their home. I don't think I ever met anyone that wants to lose money but most homes we price today should reflect a lower price than a few years ago. Now I'm on the mortgage side of things but I hear the same things. My house is worth XXX,XXX due to:
"I have nicer landscaping."
"I just replaced the carpets."
"I just repainted the walls."
"I just had the bathroom toilet fixed."
"I had my furnace replaced last year."
Realtors work very hard with comparables, pictures and stats to help support the price. I'm not saying that these upgrades are not important. They just don't really add value. They add eye and curb appeal to help a potential client say yes to the listing.
What goes into a Lender's Appraisal?
For Fannie Mae, Click here
For Freddie Mac, Click here
For FHA, Click here
Most homes are financed. So these appraisal standards are important when you price. Remember we are in a Lender's Market. Nothing will turn a buyer off more than working hard on a price agreement only to find out the appraisal comes in short. So to best serve our clients remember that most of the weight for your pricing strategy must be Lender comps.
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