When to update?
When to update?
A recent comment and exasperated plea for help from an Edmonton resident raised the question regarding the loss of potential money from the sale of their home, and disparity between the pricing of older, much older homes, and brand-new homes being built in sub-divisions around the older properties.
The homeowner in question was seemingly not alone in their aggravation. Neighbours in the same locale were experiencing the same situation, and having to keep dropping the price of their home to become monetarily attractive. They have really serious competition when they watch the neighbourhood change with older properties collectively getting a remake as sub-divisions packed in with new homes. Especially if their homes appear drab in comparison.
Obviously REALTORS® will suggest the best possible price for the older properties, given a search of similar ones in the neighbourhood.
The condition of the home is also a factor in pricing a home to sell. One has to though, put oneself in the shoes of eager buyers. Buyers balk at the prices of new homes with all the bells and whistles, and then come into the older homes, only to realize the cost to them to renovate and bring the older homes up to comparative speed. A dilemma to be sure. And especially when buyers bite the bullet and finally opt for higher priced, new properties, simply because they don’t have the time, patience and additional available resources to start renovating a home they have just purchased.
Homeowners of older homes in the meantime, then see the hopes of a reasonable sale fade into the mists; realizing they seemingly have no choice but to keep dropping the listing price in order to find someone who can see the potential in their home. They are looking for buyers who wont mind the time, and additional expense and focus to do some of the necessary upgrades to add to and enhance the charm of an older home – not to mention, bring the house value in line with what is currently happening in the neighbourhood. And the lower price they offer will reflect the amount of work they foresee.
What’s the solution?
Resale value is important, and although buyers purchase with the view of a long-term stay; the reality is that most buyers or families will live in a home for around 5 to 7 years and then look to move again. We have become accustomed to being a transitory society. Gone are the days where families lived in one home for 30 years. For the most part, given these now-seemingly rare occurrences – homeowners should recognize the value of periodically upgrading their home in order to realize an appropriately commensurate price for their house.
Older homes need to be constantly cared for and upgraded.
If cost is a factor – then it would behoove the owners to periodically assess the situation of their home, and plan for a year in advance what minor or major renovations they can afford. This way, projects – whether a do-it-yourselfer, or a trusted contractor provides an evaluation of the work required and estimation of cost, will give the homeowner a practical sense of what is required of them. Homeowners can revisit the areas in question around their home and budget around the quotes they have received.
In this way, their home is being upgraded at the pace and peace of mind of the homeowner; assured that keeping up with the Jones is indeed an ongoing work in progress that will go far to support the justification of the fair market value the REALTOR® places on the property – and the value and worth potential buyers will see as well. Especially when the gleamingly new homes just across the road are so much more inviting and enticing regardless of price.