How Do Expensive Upgrades Affect My Home Value?
How Do Expensive Upgrades Affect My Home Value?May 2nd, 2019
A question came up where the seller had a very expensive upgrade, in this case, a $14,000 Sub-zero fridge. The home was worth $390,000. The seller wanted to know how much additional value the fridge would add.
Kitchen upgrades, as a whole, would increase the desirability of the home. However, any upgrades that are over-the-top could be considered an over-improvement and may not add additional value. The Sub-zero fridge may increase the appeal and help it sell faster, but it doesn’t necessarily add market value, which is the amount a willing and able buyer would pay for the house.
Consider the following scenarios. Pretend you are the buyer and there are two identical houses for sale right next to each other. You have two choices:
1. Buy House #1 for $390K with a regular fridge
2. Buy House #2 for $404K with a $14K fridge
Most buyers would choose House #1. The $14K fridge is a personal choice and while buyers may like it, they won’t necessarily pay more for it.
Consider your options
One way to handle this is to leave the fridge out of the sale of the house and negotiate for it separately. Another option is you could also purchase a regular fridge and take the Sub-zero fridge with you.
Not leaving a fridge is ok. Many buyers already have one they plan to bring with them and if they don’t, it’s usually not a deal breaker.
If you’d like to learn more about the value of your home, contact me for a free analysis!