Baton Rouge Real Estate: Three Mistakes That Kill A Homes Value
I wanted to share a video by Tennessee Real Estate Broker, John Jones, on a topic I totally agree with him on – that of over improving your home. While John says these will kill your homes value, I would only agree with that for his number three, adding above ground pools. If you over improve your home, which is a huge mistake and you will lose big time money doing so, it will help your home sell faster. Real Estate Investors in North Baton Rouge, say Glen Oaks and $80,000 range, will spend $3,000 to $4,000 extra to have Slab Granite counters and gold colored fixtures installed, when it makes absolutely no since to do so, to add the Bling-Bling to sell these flipped homes faster….and it works.
Depending on the age of pool, having an Inground Pool could help sell the home faster as well. However, there are situations and buyer preference that don’t want a pool nor the extreme hassle and expense of maintaining a pool. And, the older the Pool, the less desirable it is to the market (buyers). There’s a Baton Rouge FHA Home Appraisal order I just declined in O’Neal Place because the homeowner said it has a 26 year old Inground Pool that has a leak.
Don’t Over Improve Above Standard Of Your Immediate Neighborhood, That Inground Pool is only going to receive 25% to 33% of investment and may not help you sell your home AND don’t install Above Ground Pools. If You’re Going To Update Home For A Listing, Update the entire home consistently, not just the Kitchen. – Broker John Jones
What John Jones recommends in his video paraphrased and partially quoted:
Today we’ll talk about the three mistakes that people make that absolutely kill a home’s value
MISTAKE NUMBER ONE – Going Overboard and Over Improving For The Neighborhood
Number one is going overboard – DON’T GO OVERBOARD OVERIMPROVING YOUR HOME ABOVE THE STANDARD LEVEL OF YOUR SUBDIVISION OR NEIGHBORHOOD
What I mean by going overboard is look at your neighborhood and look what makes sense and what doesn’t make sense.
INGROUND SWIMMING POOLS
Installing a $25,000 in ground pool with a home that’s only worth $120,000 is a HUGE MISTAKE! In our area or housing market, just know that when you put in an inground pool you’re probably only going to get about maybe a third of its value back when you sell.
HIGHER END HOMES POOLS
So, even in the higher end homes, know that when you install an Inground Pool, that you’re gonna be there awhile and that is gonna give you a lot of personal value but is only going to contribute “MAYBE” 25% to 33% of your investment.
MISTAKE NUMBER TWO – Inconsistency
Number Two deadly mistake is inconsistency and what I mean by that is I went into a home the other day that was about 15 years old and they spent about forty thousand dollars on a kitchen remodel and it was beautiful but they didn’t touch the rest the house. I mean there was blue carpeting and everything else was cosmetically dated. They only focused on the kitchen and it is gonna hurt them.
What you want to do in a neighborhood is is find out what the baseline is in the neighborhood and bring your home up to the baseline. Cure the deficiencies in your home to make it more appealing to the potential buyers in your subdivision. If your home has formica counter tops in Kitchen and the standard is ceramic tile counters, then bring your home up to the standard baseline of what other homes have, BUT don’t over improve.
MISTAKE NUMBER THREE – Above Ground Pools
ABOVE GROUND POOLS – Just Don’t Add Them! There are exceptions and I’ve had a few over the years that were done so well and maybe sunken down on the ground with really nice decking around them to where they were a natural attribute, BUT 9.5 times out 10 they’re an eyesore and it turns off most potential buyers.