Here was the difference. The home that sold for less money per square foot (to be referred to as Home A) had stained, buckling white carpet and white tile in disrepair throughout. The renovated home (Home B) had brand new hard wood flooring.
Home A had a broken floor to volume ceiling mirror, cracked and in need of removal and/or replacing. Home B had fresh paint in every room, neutral colors.
Home A had sliding glass doors and some did not open. Home B had brand new french doors, and solid wood doors throughout.
Home A had engineered wood kitchen cabinets and some were pulling away from the wall. The counter top was a colorful, swelling laminate. Home B had solid wood, off white cabinets with granite counter tops and an open floor plan.
Home A had original bathrooms needed work. Home B had wholly renovated bathrooms with high end features.
Home A had a 20 year old roof. Home B had a 3 year old roof.
And yet, the savvy square foot buyer felt that Home B was a "rip off".
If the buyer disliked all the brand new renovations in Home B and wanted to put his own styles in a Home A (needs a lot of work) situation, or was planning to happily live on stained carpets and under an aged roof, this would have made sense. However, it was not the case.
When looking for a home, the average square foot price in the neighborhood is intended to be a guide. It is important to consider that guide when renovating, so we do not over-improve. However, square footage pricing often does not tell the whole story.
So what happened to House A? Several other buyers came through, appreciated the high end renovations and a bidding war ensued. The house sold for more than asking price. The square footage buyer and his disappointed wife kept looking.
Don't be Frank!
Don't be Frank!
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