Home buyer tips:
Are You Paying too Much for Pretty?
a 3 part series
Home Amenities increase home value, but decor increases price! That’s great to remember when you’re selling your home, but as a home buyer, how much should you pay for decor? Everyone wants a nice home, of course, but paying for home decor costs a lot more than you think!
We know location gives a house value, or at least has a huge impact on value, but what else? Well, it’s the things that stay with the house, are a part of the house and aren’t easily changeable that add value, or can take away value.
I seen buyers who were confused between value and price. Let’s say there’s a house that sits under electrical power lines. It’s priced 30% less than others in the neighborhood. That house is not a value – it may be a low price, but it’s not a value! That’s because when you go to sell it again, you too are going to have to lower the price about 30% to get it sold because of those power lines.
A house that has a good value might be one that has some of the extra amenities. That’s what we want to look for – amenities that don’t change, like a walkout basement, a level lot, privacy.
Look for the amenities that give you value and stop looking at the decor! Decor doesn’t add much value and adds to price. You’ll pay more for a house that has gray paint on the walls or whatever light fixtures are in fashion. Those things are easy to change latter.
You’re actually paying to mortgage decor for 30 years because a highly updated house is going to be priced higher than the one down the street that might have more value but is lower in price. Do you really want to pay a higher price AND interest on decor features that you could do yourself?
Keep an eye out for value adding items, and watch out for price adding items.
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