Margaret Rome's Blog

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Bigger Is Better...Sometimes

 

Bigger is better...for some buyers.

Myth: Never buy the biggest best house in the neighborhood. How many times have we heard or even given this advice?

Over improved houses may not be in a seller's best interest but could be great for a lucky buyer. For a buyer, they will be able to get so much more in a house than if they bought the cheapest house in the best neighborhood.

 Who might over-improve a home? 

Since I specialize in unique and unusual homes, I have the opportunity to deal with properties that may be a bit over the top. Other agents say they will never appraise and they may not. 

When working with a buyer who is looking for special homes, they see the value in a home that has all the bells and whistles that work for their needs.

 

Bells Whistles Margaret Rome

 

It could be an extra kitchen, it could be a pool addition, it could just be that all the systems are new including, electric, sewer, HVAC, windows, a roof, a sun-room, a spa, a luxury bath or even an addition for use as a home office.

Certainly, I am not suggesting that anyone, intentionally, over improve especially if they are planning to move in the near future!

But it's your home and if an in-law suite, extra kitchen, tennis court and swimming pool is what your family needs... then go for it!

You probably won't get your investment back. 

 But who can put a price tag on the pride of ownership? Maybe your kids don't need summer camp when you have a backyard pool. Maybe your parents won't need assisted living when you have an in-law suite. 

Over improvements can be perfect for the buyer who wants a turn-key house, meeting their needs and be able to move in and start living.

Sometimes you need to wait for the right buyer.

Sometimes bigger is better!

 

 

Margaret Rome

 

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Author of Real Estate the Rome Way

mrome@HomeRome.com

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Comment balloon 23 commentsMargaret Rome, Baltimore Maryland • January 19 2019 05:16PM

Comments

I agree with you on this topic, Margaret.  Often a family with certain desires and needs can find a home that is at the top in the neighborhood, but with a price they can afford, rather than having a similar home in like developed neighborhood which would be out of their price range.

Posted by Myrl Jeffcoat, Greater Sacramento Real Estate Agent (GreatWest Realty) 4 months ago

Myrl Jeffcoat Glad to see that you agree that sometimes this is the right decision for the buyer. Dealing with unique properties, we have to find unique buyers. 

Posted by Margaret Rome, Baltimore Maryland, Sell Your Home With Margaret Rome ( HomeRome Realty 410-530-2400) 4 months ago

Good afternoon Margaret Rome, Baltimore Maryland ,

There is a lot of truth in your post. Sometimes bigger is better for a buyer..it's their decision and could be the right one for them.

Posted by Dorie Dillard CRS GRI ABR, Serving Buyers & Sellers in NW Austin Real Estate (Coldwell Banker United Realtors® ~ 512.750.6899) 4 months ago

Quality of life - enjoyment, a need for a certain family situation, that is enough of a reason for me. And yes, those unusual homes are often a somebody's perfect cup of tea. We see it time and time again with unique homes. 

Posted by Debb Janes EcoBroker and Bernie Stea JD, REALTORS® in Clark County, WA (ViewHomes of Clark County - Nature As Neighbors) 4 months ago

Margaret Rome, Baltimore Maryland - This is good advice. I agree. Buy wisely!

Posted by Patricia Feager, MBA, CRS, GRI,MRP, Selling Homes Changing Lives (DFW FINE PROPERTIES) 4 months ago

 

Dorie Dillard CRS GRI ABR Sometimes bigger is better for the buyer...if it is the right house!

Posted by Margaret Rome, Baltimore Maryland, Sell Your Home With Margaret Rome ( HomeRome Realty 410-530-2400) 4 months ago

Debb Janes EcoBroker and Bernie Stea JD Thanks for the support. Sometimes have to work a bit harder to match these homes with the right buyer.

Posted by Margaret Rome, Baltimore Maryland, Sell Your Home With Margaret Rome ( HomeRome Realty 410-530-2400) 4 months ago

Patricia Feager, MBA, CRS, GRI,MRP  Buy wisely and know what the buyer wants and needs. And it is always good to see you.

Posted by Margaret Rome, Baltimore Maryland, Sell Your Home With Margaret Rome ( HomeRome Realty 410-530-2400) 4 months ago

Many times smaller and better lay out is much better

Posted by William Feela, Realtor, Whispering Pines Realty 651-674-5999 No. (WHISPERING PINES REALTY) 4 months ago

 

William Feela I call it Right Sizing...what the buyers need. Many times it is smaller and a better layout.

  

Posted by Margaret Rome, Baltimore Maryland, Sell Your Home With Margaret Rome ( HomeRome Realty 410-530-2400) 4 months ago

Hi Margaret,
I love this post because it brings up some important points. I absolutely agree with you. If you need to make improvements or upgrades in a home to serve a specific purpose that is money well spent and very difficult to put a price on the personal value it creates for however long you live there.  That actual dollar investment may not be recovered at sale time but you have reaped the benefits during your time in the home.  You can't put a monetary value on things like that.   Thanks for the post!

Posted by Carol Williams, Retired Agent / Broker / Property Manager (Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals.) 4 months ago

Congratulations!  You've been Featured in the Bananatude.

Posted by Carol Williams, Retired Agent / Broker / Property Manager (Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals.) 4 months ago

Carol Williams Thanks for the feature and for your comments. THis is going to be one of my topics on my 12 noon radio show...gotta go..I'm late!

Posted by Margaret Rome, Baltimore Maryland, Sell Your Home With Margaret Rome ( HomeRome Realty 410-530-2400) 4 months ago

Hi Margaret Rome, Baltimore Maryland, the extra money spent on improvements or additions don't necessarily mean more money when selling a home.  Buy and spend wisely. Great post!

Posted by Beth Atalay, Cam Realty of Clermont FL (Cam Realty and Property Management) 4 months ago

Yes sometimes you do have to wait for that perfect buyer, but there is a home buyer for every house.

Posted by Tammy Lankford,, Broker GA Lake Sinclair/Eatonton/Milledgeville (Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668) 4 months ago

Beth Atalay There are times that improvements and additions are a necessity even knowing the money may not be recouped.

Posted by Margaret Rome, Baltimore Maryland, Sell Your Home With Margaret Rome ( HomeRome Realty 410-530-2400) 4 months ago

 

Tammy Lankford, Reminds me of those other sayings. 

Posted by Margaret Rome, Baltimore Maryland, Sell Your Home With Margaret Rome ( HomeRome Realty 410-530-2400) 4 months ago

I still remember a family member calling and asking me if spending money on a pool or finishing their basement would be more of a return on their investment when they sold.  My answer of finishing the basement was obviously not the one she wanted to hear, but then I asked her a couple of questions, "How long do you intend on being in your home?"  She gave an answer of multiple decades.  Then I asked, "Will you get enough enjoyment out of a pool over those years to make it worth the expenditure?"  In the end, the enjoyment is all that matters.

Posted by Chris Ann Cleland, Associate Broker, Bristow, VA (Long and Foster REALTORS®, Gainesville, VA) 4 months ago

Chris Ann Cleland  Wonderful answer. Your comment would make a good stand-alone post. Always good to see you!

Posted by Margaret Rome, Baltimore Maryland, Sell Your Home With Margaret Rome ( HomeRome Realty 410-530-2400) 4 months ago

Hi Margaret.  It is hard to sell an overbuilt home when the neighborhood comps support a much lower price.  My husband builds spec homes and loves infill.  However, he is always careful to make sure the home he builds fits the neighborhood and the comps support the price.

Posted by Lynnea Miller, Premier Real Estate Service in Central Oregon (Bend Premier Real Estate) 4 months ago

Lynnea Miller You are so right.  No one, especially a spec builder would ever overbuild! None of us would ever

suggest anyone over improving their home.

The properties referred to are resales that have been over-improved by the owners.  Depending on the buyer, there can be a good deal to get a lot more house but in a less expensive neighborhood.

Hope you are listing and selling all of hubby's homes!

Posted by Margaret Rome, Baltimore Maryland, Sell Your Home With Margaret Rome ( HomeRome Realty 410-530-2400) 4 months ago

Hi Margaret Rome, Baltimore Maryland .  I got into real estate to sell my husband's homes. Although over the last two years it has been mostly customs, the atmosphere in our local market and the attitude of our custom home owners created such an environment that he was ready to hang it all up.  I talked him into another custom - which I am listing. 

Posted by Lynnea Miller, Premier Real Estate Service in Central Oregon (Bend Premier Real Estate) 4 months ago

 

Lynnea Miller Sounds like you two have a great plan. Wishing you the right buyer even before the house is finished!

Posted by Margaret Rome, Baltimore Maryland, Sell Your Home With Margaret Rome ( HomeRome Realty 410-530-2400) 4 months ago

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