Will premium features be freebies?

[bjensen]

So, I was hoping the Piggs could help me with a question I have.

I have noticed that the bubble fueled massive amounts of home remodeling to put in granite, travertine, and stainless steel, in properties that had no business doing so.

Sans bubble they would have had Formica, laminate floors and plain old white appliances.

So now that so many properties have “upgraded” will those upgrades now be priced into each property’s final resting price, or will the decline in home prices erase their “investment” and give us bitter renters an extra FREEBIE for waiting until the fire sale?

[gn]

The main factor that determines the value of a property is “location”. For the most part, the values of the upgrades will be “erased”.

[gn]

The main factor that determines the value of a property is “location”. For the most part, the values of the upgrades will be “erased”.

[gn]

The main factor that determines the value of a property is “location”. For the most part, the values of the upgrades will be “erased”.

[gn]

The main factor that determines the value of a property is “location”. For the most part, the values of the upgrades will be “erased”.

[bjensen]

Ok, maybe too many quotation marks. I just wanted to make sure it was understood that I don’t consider such things investments, nor do I consider some of the trendy things of today are really upgrades at all.

Thanks for the advice though!

[bjensen]

Ok, maybe too many quotation marks. I just wanted to make sure it was understood that I don’t consider such things investments, nor do I consider some of the trendy things of today are really upgrades at all.

Thanks for the advice though!

[bjensen]

Ok, maybe too many quotation marks. I just wanted to make sure it was understood that I don’t consider such things investments, nor do I consider some of the trendy things of today are really upgrades at all.

Thanks for the advice though!

[bjensen]

Ok, maybe too many quotation marks. I just wanted to make sure it was understood that I don’t consider such things investments, nor do I consider some of the trendy things of today are really upgrades at all.

Thanks for the advice though!

[kev374]

agree with gn, the upgrades are just bonuses to buyers and will not factor in significantly in negotiating price. However, they may give the home an edge against the competition without those features in terms of getting it sold.

[kev374]

agree with gn, the upgrades are just bonuses to buyers and will not factor in significantly in negotiating price. However, they may give the home an edge against the competition without those features in terms of getting it sold.

[kev374]

agree with gn, the upgrades are just bonuses to buyers and will not factor in significantly in negotiating price. However, they may give the home an edge against the competition without those features in terms of getting it sold.

[kev374]

agree with gn, the upgrades are just bonuses to buyers and will not factor in significantly in negotiating price. However, they may give the home an edge against the competition without those features in terms of getting it sold.

[temeculaguy]

I’m with Kev, it’s an edge. It may not be the driving factor but it is a factor especially if there are comparable nearby homes listed. In a way it has a price factor because I have my minimums and anything lacking those, I back out the cost of those when determining the price. For instance, I hate honey oak cabinets and tile countertops with grout because I’m lazy and granite or corian is easy to clean. I also want stainless or at least new and higher end appliances (a quiet dishwasher with a built in disposal). I also hate carpet, laminate flooring, vinyl flooring, and glossy tile. Wood, tile or some other natural flooring or I will put it in before moving in and my offer will reflect my cost of doing so. Putting in flooring, counters or cabinets is a pain in the butt while you live there. So is there a value to places that are already “dialed in” and modern? YES. Will they get back every nickel they put into it? NO!! That is why I would prefer to buy the one that has the upgrades, because it’s easier and cheaper to get it the way you want when there is so much out there to choose from and if a place lacks these things, they have to lower their price to compensate. It’s like buying a car without air conditioning, right off the bat, you’ve lost half the potential clients and of those that are left, they will want a price reduction commensurate to the lack of air.

[temeculaguy]

I’m with Kev, it’s an edge. It may not be the driving factor but it is a factor especially if there are comparable nearby homes listed. In a way it has a price factor because I have my minimums and anything lacking those, I back out the cost of those when determining the price. For instance, I hate honey oak cabinets and tile countertops with grout because I’m lazy and granite or corian is easy to clean. I also want stainless or at least new and higher end appliances (a quiet dishwasher with a built in disposal). I also hate carpet, laminate flooring, vinyl flooring, and glossy tile. Wood, tile or some other natural flooring or I will put it in before moving in and my offer will reflect my cost of doing so. Putting in flooring, counters or cabinets is a pain in the butt while you live there. So is there a value to places that are already “dialed in” and modern? YES. Will they get back every nickel they put into it? NO!! That is why I would prefer to buy the one that has the upgrades, because it’s easier and cheaper to get it the way you want when there is so much out there to choose from and if a place lacks these things, they have to lower their price to compensate. It’s like buying a car without air conditioning, right off the bat, you’ve lost half the potential clients and of those that are left, they will want a price reduction commensurate to the lack of air.

[Author]

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