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.
Terez B. Harris
Keller Williams Realty New Orleans
504 975 1033
TerezHarris@KW.com
TerezSellsNolaHomes.com
8601 Leake Ave., New Orleans, La 70118
Free Reports:
Smart Home Price
Search the MLS!
(multiple listing service)
Search Terez's Active Listings!
Terez B. Harris Terez Harris NOLA Real Estate Group 504-297-2619 www.TerezHarris.com
Keller Williams Realty New Orleans 8601 Leake Ave. New Orleans, LA 70118 504-862-0100
Each office independently owned and operated. All brokers and agents licensed in the state of Louisiana.Keller Williams Realty New Orleans 8601 Leake Ave. New Orleans, LA 70118 504-862-0100
No comments:
Post a Comment