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Home Value vs “Saleability”

September 19, 2010

Many homeowners look at the improvements they’ve made in their home and think they should recoop the price of the upgrades at sale time.  The hard truth is that upgrades do not necessarily increase market value.  The upgrades DO, however, have the ability to drastically change the Saleability of their home.

Let me explain the difference in these two important concepts.

Market value is the value that the housing market  places on your house – at this time, in this geographic and economic environment.  A 3 bedroom, 2 bath house with a 2-car garage and a half acre of land will only sell within a certain price range in this market in a particular development.  It doesn’t matter if there is crown molding throughout, granite countertops and a subzero in the kitchen.  This is the concept of being the best house in a given neighborhood.  It is difficult to realize what you think the house is worth, if all those surrounding yours are of lesser value.

Saleability is a mix of all the extra features that your house has above the others in its market value range.  So if your house has crown molding, etc., etc. and is priced in the range of houses without those features, it will be more likely to get the offers and be sold for closer to list price.  These saleability factors can also significantly reduce the time you spend marketing the house.

Instead of regretting that you will probably not see a return on the investments you made on upgrades, think of how they have enhanced your daily experience in living with them.  Enjoy your home now and look forward to improved saleability!

Patty Cunningham
Coldwell Banker Preferred


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