“No-No’s” for Would-Be Home Sellers, or
“What’s the Opposite of an Achilles’ Heel?”
My #1 piece of advice for would-be home sellers prepping for market this Spring (or any other time of year) is, “make everything consistent.”
Which suggests this corollary: “don’t over-improve.”
In fact, there are two kinds of over-improvements: 1) within the home; and 2) relative to the neighborhood.
In both cases, an over-improvement is something that the owner has spent money on, that they likely won’t be able to recoup on sale.
Exhibit A: The Marble Sink in the Basement Bathroom
Perhaps the best example of the former is the St. Louis Park homeowner who dropped a cool $50k on a kitchen-full of Wolf appliances (the Lamborghini of stoves, ovens, etc.).
The problem?
The rest of the house was strictly a Toyota Camry (albeit very nice and in excellent condition — er, a late model year with low miles).
Other examples of over-improving include a marble sink in a basement Bathroom (never mind the proverbial gold toilet); a deluxe, 3-car garage for a modest, 1,500 square foot rambler; and a spare bedroom in the basement that was converted into a $75k professional music studio, complete with soundproofing, custom wiring, and sliding glass doors (that home was one of my first career sales, 13 years ago!).
In each case, unless the Seller is able to find their twin with the same wants and needs (and budget!), they’re unlikely to get their money back.
The Overimproved House
Which leaves the second type of over-improvement: an internally consistent home that is nonetheless too expensive relative to its neighbors.
Generally speaking, neighboring homes are usually worth +/- 30% of one another.
So, instead of buying a $600k home on a block where prevailing prices are around $400k, most prospective Buyers will seek out a $600k home — albeit a less impressive one — on a nicer block in a more expensive area.
Non-Financial Considerations
Of course, there are plenty of reasons to spend money on a home improvement that have nothing to do with making a profit.
Like, the owner will use and enjoy it!
Especially when the owner plans to stay put for years (or even decades), long-term resale considerations are largely irrelevant.
In such cases, my advice is, “do whatever makes you happy (that isn’t a financial stretch).”
See also, “First Rule of ‘For Sale’ Home Prep: Consistency”; and “Home Improvements: Feasible vs. Practical.”
