“But, I Put In New Ceiling Fans”

tropical wooden vintage ceiling fanThis blog post might be the start of some mini-rants from situations I run into from time to time.

This first one is about how people, trying to increase the value of their homes, really grasp for straws tying to justify why their home should go for a much higher price than a similar house down the block and around the corner.

What Really Creates More Value (Money) For A Home?

Lots (and lots) of times I get people who want to sell their home for gobs and gobs of money. Nothing wrong with that. I want them to get as much as possible. After all, I get paid on what their house sells for. I don’t get paid, though, if their house doesn’t sell. Many times the reason it doesn’t sell or, at least, deosn’t sell for the price they want is because they want a price they can’t get.

I get all kinds of reasons a house should command a higher price:

  • “I just put in new ceiling fans”
  • “We’re wired for FiOS”
  • “I’ve got the biggest lot on the street” (by 100 square feet)
  • “We just painted”

All that is great stuff and, undoubtedly, some new owner will really appreciate your new ceiling fans. However, it really doesn’t add $10,000 to the price of your home. Not even $5,000. Not even $100.

You see, when your home goes on the market there is the price you want, the price the buyer is willing to pay and the price some appraiser from the mortgage company will provide to the mortgage company as to how much your house is really worth.

It’s the value of your home that the appraiser puts on it that counts. If it’s too low, the buyer won’t be able to purchaser won’t be able to get a mortgage. No mortgage. No sale.

There is a neat report that can give you some guidelines about what types of things really do add value to your home and the type of “Return on Investment” you can expect to get.  (Download it from here)

In other words, if you put in a new kitchen (a big plus) you might get 96.4% of your money back for a “minor kitchen remodel” and only 61.4% back on a “major kitchen remodel”.

Be Realistic

There are lots of things you can do to make your house look nice. They will make your house look great and sell a lot faster than a house that looks like the people don’t care if it sells or not.  Things like:

  • great curb appeal
  • decluttering
  • interior and exterior painting
  • new celing fans

Just don’t expect these types of things to cause the price of your house to go up. They won’t. They’ll just make it a whole heck of lot easier to sell at the right price.

If you want the “Cost vs Value” Report for 2016, just e-mail me and I’ll be glad to send it to you. It comes from Remodeling Magazine so it’s for real.

About Ken Montville

Ken Montville is a Realtor® and Associate Broker with RE/MAX United Real Estate in the beautiful Maryland Suburbs of Washington, DC. He has been selling nice homes since 1999. Way back in the 20th Century.

When Ken Is not doing the real estate thing he can be found all over social media in places too numerous to mention and he listens to jazz, reads a little (mostly non-fiction), hangs out with the Rotary Club of College Park, MD and can be found blogging at MDSuburbanHomes.com