What If I were going to sell my home...
Background info: My home was purchased for $178,000 in the early Spring of 2004. It is 1307 square feet. 3 bedrooms/ 1 (huge) full bath. The third bedroom is very small and is better suited for an office/ nursery (which is typical for homes in this area). The kitchen is a galley kitchen, which is long not wide. The home has a lot of the original integrity intact and has some very spacious rooms.
What are recent home sale comparables? The average estimate for a home of the approximate size in the area sold for around $145 per square foot or $190,000. The approximate highest estimate is around $175 per square foot or $230,000. If I were selling my home now, looking at the comparables, I would rate my home as slightly above average, so I would list my home at maybe $199,900.
But I am not selling, so what do I get from all of this? I get a lot, actually. I know I max out for the size of my home in this location at $230,000. Let's say I plan to move in two years , where so I think that price might be? Maybe $240's? Depending on the market...maybe more/ maybe less.
Where is my home's areas of opportunities? What are people going to want from my home to get it to be an "above average" home?
- I need to update my kitchen: New appliances, new counters, more storage and please God, a dishwasher!
- I need to add overall storage without taking away valuable square feet: Maybe a built-in for the bathroom, finish off the staircase to the basement.
- A 1/2 bath: possibly.
- A Garage: cross that out, the space isn't big enough.
- Curb appeal: note to self, get rid of the chain link fence & fill in that crack on the steps.
What's my budget? Here's where I need to decide, do I want to make any money when I sell my house? If I do, I know I am not putting in a $50,000 kitchen any time soon.
So what's to learn from this? Unless it is the home you will be in for the rest of your life, know the market value of your home:
- When you buy it: Do not overpay for a home. Consider the comparables and what improvements you will need to make to it when you buy it.
- While you live in it: DO NOT over-improve your home!
- When you sell it: DO NOT become the "I have to sell at this price" person, the market decides the value of your home, not me, not you.