House with many upgrades

9 years ago

I'm thinking of selling in a neighborhood with low to moderate priced homes, specifically in the area I live in. In another area about 3 blocks away, in the same devopment, are larger more expensive homes, but a couple of years older.

My home has many upgrades, is well landscaped w/covered patio as well as an extended flagstone patio, but is clearly not as large as the homes not too far away. I'm not competing with any new builds, as the development has been built out, so all are resales.

As for the location, I'm 20 minutes from downtown Austin, with a new expressway only two blocks away. Retail shopping(groceries, Target, Sears, penney's)would be a straight shot off the expressway, about 15 minutes away w/the closest mall about 20. And there's a new Walmart not even 5 minutes up the expressway.

Should I price higher rather than lower? Do the bigger homes 3 blocks away have a bearing on the price of mine, even though the houses in my neighborhood are less expensive? What % of the price should i allow for the upgrades? Will I have a difficult time selling because it's the most pricey on the block?

The house as it is would sell for over twice what I paid to build it 6 years ago if it were in Austin! I feel I'm in a real predicament!!

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Comments (6)

ncrealestateguy
9 years ago
Your comps are NOT the larger homes down the road. Use comps in your sq. ftg. range and your immediate neighborhood. Figure out the highest paid price of those comps and then add a little bit more for your upgrades. You WILL lose money on the upgrades, but you will gain marketability having them.
Yes, some buyers refuse to purchase the highest priced, overly upgraded home in the neighborhood. But there will always be the buyer who can not refuse the "free" upgrades.
patty_cakes
Original Author
9 years ago
Six months ago a single story home sold for 'x' amount per square foot. It wa only 30 sq ft less than my home. I've been told a single story sells for more per sq ft than a 2 story, but with the upgrades, could I take that into consideration and price close to the same ?

I'm trying to get my 'disappointed face' ready for when the realtor tells me what I really don't want to hear. This was to be my forever home, and therefore made it my dream home also. Sometimes life just gets in the way.

Ps....,I have a son in Wilmington. I almost moved there but chose Austin instead. It was a great choice!!
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kirkhall
9 years ago
You need to compare apples to apples, as much as possible. The price per square foot matters less than the price of the homes similar to yours in your same location. If you are in a development, there are probably other homes that are 2 stories. You will be compared to other 2 story homes (because, yes, a ranch has a different desirability than a 2-story).
ryseryse_2004
9 years ago
Just remember - they are your upgrades. Someone might not consider them something they want or need. Ex: a pool, jacuzzi, laminate floors, etc.
Mmmbeeer
9 years ago
I agree with Ryse. For example, I happen to love a giant bathtub, which many people would never use and would consider to be a waste of water. To me, a master bath with a huge shower and duel shower heads (but no bathtub) is a considerable drawback and not an upgrade. To someone else, it's the ultimate home improvement. Upgrades are often a matter of personal taste. That being said, a seller could have the most amazing spa like bathroom in the world but if the location, schools, floor plan, home conditions are not up to par, I wouldn't be interested regardless.
palimpsest
9 years ago
My Realtor said of my upgrades: the potential buyer will notice a difference, the potential buyer will *like* your place better than the comps. They generally won't want to actually Pay you for upgrading it.