Friday, March 9, 2018 / by Ruth Ballantyne
It's an ego thing. It makes us feel good to show our financial success.
And in one way it's often men who go over the top the most. We can argue about it if you want.
They want imported everything including granite or marble, architectural designs, custom finishes and expensive kitchens and baths, along with lots of garage space for luxury cars.
But some luxury cars hold their value far batter than houses do.
A good many sports stars have bankrupted themselves buying this stuff.
A really unique house may only appeal to one person, the person who remodeled it or built it.
There are several problems when a house like this goes to resale.
1. The really expensive finishes and decorating are too individual to work well at resale. The owner might like orange granite, but no one else does.
2. The costs of certain types of décor can never be recovered at resale. It's something the owner wanted that no one else wants or will pay for.
3. The house may be over improved for the values in the neighborhood. For example fashionable granite that has gone into kitchens all over the country. The stuff costs several thousand dollars to install but houses no longer sell for enough money to recoup the cost.
4. Custom paint is a turn off to buyers when houses go to resale. It's ALWAYS the wrong color. The wrong color, meaning any color that is not neutral, just won't sell.
5. The décor that the owner has spent so much time and money on does not appeal to buyers. Often it might even turn them off and they run from the property to the next one. Decorating styles can really be a disadvantage at resale.
6. Custom houses usually only appeal to the owner/ builder. No one else wants the floor plan that has all the kids sleeping in a one-room dorm or the workshop in the bedroom wing. A poorly done remodel can mess up a perfectly good house plan, too.
7. It can be very difficult to sell a house in an area if it is very different from the other houses in the neighborhood. In the southeast for example, most buyers prefer traditional exteriors. A hard contemporary or mid century modern may take way longer to sell than something more traditional. It's the reason neighborhoods have architectural review boards. They don't want anything really different.
So if you expect to have to resell your home any time in the near future control your spending. Only spring for the expensive stuff that will move with you when you go. The house may still represent something important for your ego without being so individual you can't sell it. Resale means you want to appeal to as many buyers as you can so you can sell a house quick.
That means the property has to be sort of average.
It might be more fun to impress your friends with great food and a feeling of simple luxury. 5 stars for comfort can trump the most outrageous décor with your friends and guests.
by: Paula Stone