Over-Improving Your Personal Residence?

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HomerJ
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Re: Over-Improving Your Personal Residence?

Post by HomerJ »

Sandi_k wrote: Wed Nov 18, 2020 12:03 am
HomerJ wrote: Tue Nov 17, 2020 2:40 pm
Sandi_k wrote: Thu Nov 12, 2020 3:31 am So, we bought a new-to-us home in 2011 - it was everything we wanted
Why was it "everything you wanted"? Sounds like you've replaced a ton and need to replacing a ton more...

What was special about it?

Why not just move to a new home that is actually "everything you want"?
1) Location. On the water, and within the development, with an eastern exposure.

2) Features of the house. Rare 3-car garage. Rarer RV-height bay (DH is a car fan, and put in a car lift). Most rare: because the custom home is elevated over the levy, there is a built-out basement, so DH has room for his extensive set of tools.

3) We got it unimproved. It had been on the market for a year, as a pawn in a divorce case. So no paint, no upkeep, no staging. It has appreciated significantly, but if you know CA, you know your tax basis is based on purchase price, and then tax increases are capped at 2% annually thereafter. It is very much to our benefit to have bought it for less, rather than a "new home."

4) The development is small. According to several realtors, this is the ONLY house in the development with these features. We did look at a completely upgraded and renovated home before we pulled the trigger on our purchase option for this house. It was 25% more expensive, but completely "done." DH was excited about it, until we took the boat down the bay, turned around, and timed how long it would take to get to "fast water" outside of the development's 5 mph "no wake zone". From that house? Took *40 minutes* before you could throttle up. From our house? 12 minutes.
Excellent reasons.... Spend the money! You earned it!
A Goldman Sachs associate provided a variety of detailed explanations, but then offered a caveat, “If I’m being dead-### honest, though, nobody knows what’s really going on.”
ad2007
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Joined: Wed Nov 29, 2017 5:59 am

Re: Over-Improving Your Personal Residence?

Post by ad2007 »

Sandi_k wrote: Wed Nov 18, 2020 12:26 am
Yeah, the lot alone is ~ $350k, based on the new build two lots up that is currently under construction.
So your house (structure) would be valued at over $500K. Then by all means, spend the funds to improve it. Sounds like a nice water front property. Good luck with your renov projects.
sil2017
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Joined: Mon Jan 23, 2017 7:25 am

Re: Over-Improving Your Personal Residence?

Post by sil2017 »

Repair definitely yes to prevent more damages.
Unless you are 100 Percent certain your will be staying in the house forever, I would not overdo major renovations.
If your house will sell for over one million, chances are that the new buyer will do their own updating.
My neighbor sold a house with over 200k of remodeling . The remodeling was done under 2 years before selling. New buyer didn't like it and gutted the whole kitchen and both bathrooms plus the yard.
My house is in escrow at the moment. I had a new living room built in cabinets and fireplace remodeled last year. I heard through my Arlo that the prospective buyer does not like it and plan to remove it. I also painted 2 bedrooms and bathrooms and also overheard that the buyer wants a different color of paint for their young daughter. Good thing I didn't remodel the 2 bathrooms which I thought about before selling.
HomeStretch
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Re: Over-Improving Your Personal Residence?

Post by HomeStretch »

sil2017 wrote: Sat Nov 21, 2020 9:08 am I heard through my Arlo that the prospective buyer does not like it and plan to remove it. I also painted 2 bedrooms and bathrooms and also overheard that the buyer wants a different color of paint for their young daughter. Good thing I didn't remodel the 2 bathrooms which I thought about before selling.
Just curious, do you need to disclose to potential buyers touring your house that you have audio/visual surveillance? I realize this may be state dependent.
Xrayman69
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Re: Over-Improving Your Personal Residence?

Post by Xrayman69 »

OP, moved into our “forever home” in 2009 at a very reasonable point during the Great Recession era and we felt we got a 25-30% psychological discount. We had been willing to pay at a higher price as the location was the premium. It was newly “rebuilt “ in 2006 which further conclude that the home was right for our family as it was built by a builder as their forever home with solid foundation and build. Unfortunately for the builder the recession hit seattle real estate and ......

Over the first 10 years we didn’t put any significant money into the house itself as we were very satisfied and happy. However over the past 2 years we have put over 130K into the house for home improvements and renovations not because it was “needed” but because we wanted and would enjoy the improvements. It’s still our forever home and it is where we spend most of our time and receive great joy with our family and friends (during non pandemic times) entertaining.

“Over improving “ our home is probably true for the need, but the value is made up by this slight “over improvement” by the joy of living in our home. Joy is the intangible and difficulty to quantify. However we know it and receive the benefits of it as our family hunkers down this holiday season and grateful that we can enjoy our home.
sil2017
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Re: Over-Improving Your Personal Residence?

Post by sil2017 »

HomeStretch wrote: Sat Nov 21, 2020 9:46 am
sil2017 wrote: Sat Nov 21, 2020 9:08 am I heard through my Arlo that the prospective buyer does not like it and plan to remove it. I also painted 2 bedrooms and bathrooms and also overheard that the buyer wants a different color of paint for their young daughter. Good thing I didn't remodel the 2 bathrooms which I thought about before selling.
Just curious, do you need to disclose to potential buyers touring your house that you have audio/visual surveillance? I realize this may be state dependent.

I don't know. It is an Arlo outside my house. I believe the buyer knows it was there . They commented on Arlo so they probably have one.
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F150HD
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Re: Over-Improving Your Personal Residence?

Post by F150HD »

1) Replacing the 1985 deck - which was done with redwood, now decaying - it requires a complete teardown and replacement. It's a BIG deck. Estimates are $70k+ for a composite deck of ~ 600 SF plus railings and steps.
this (to me) could be an insurability issue (safety?) and could even prevent the house from being sold down the road? Not seeing a way around addressing that?

Being on the water, just guessing this house needs a deck of some form to enjoy that space.
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