Can you establish your home’s value based on how much money
you have invested in it?
Let’s say that you and your next door neighbor have
identical homes. You both paid $150,000 for your homes last year.
Your neighbor has enjoyed 12 months of peace and harmony in
his home.
You haven’t.
First, you air-conditioner broke just two months after you
bought your home. Repair cost? $2,000
Next, your teenage son missed the brake pedal and drove the
family car through the garage into the living room. Repair cost? $12,000
That storm last year ripped off your roof and the
replacement roof cost you another $7,000.
And then there was that accidental fire in the kitchen.
Repair cost? $14,000
You now have a $150,000 purchase price plus an additional
$35,000 in repair costs invested in your home. That’s a total investment of
$185,000.
The question is:
If your neighbor is selling his home for $150,000- can you
sell your identical home for $185,000 just because you spent money on repairs?
And the answer is: No
The buyer is not interested, and doesn’t care, how much
money you’ve spent on carpeting, repainting, satellite dishes, etc. All the
buyer cares about is the present value of your home.
You can’t base your selling price on how much you invested.
Buyers won’t let you pass on your accidents and repair costs on to them.
It’s like trying to sell your car and recouping all the
money you spent on maintenance, gas, oil, insurance, and car washes.
Value is not based on how much you’ve invested in your home.
If you have any questions about selling your
home, contact Terez Harris NOLA Real Estate Group. We would love to help. Call
(504)297-2619 or email Harris.Terez@gmail.com for more information.
Terez Harris NOLA Real Estate Group
(504)297-2619
Keller Williams
Realty New Orleans 8601 Leake Ave. New Orleans, LA 70118 504-862-0100
Each office
independently owned and operated. All brokers licensed in the state of
Louisiana.
No comments:
Post a Comment