Updates vs. Maintenance

Posted by Matthew Lindsay on Thursday, October 25th, 2018 at 10:30am.

 Updates vs. Maintenance

We work with a lot of people who want to sell their homes. One of the most common questions we get is in regards to home value, and recent renovations and maintenance.

Many people think that because they recently had their roof, furnace or other items replaced, they can include that cost into the price and recoup some of that expense.

Additionally, people ask about their remodels and renovations and how that influences the price of their home. Let’s dive deeper into this topic and explain what items affect price.

 

How Are Homes Priced?

Before we begin talking about how maintenance and updates, let's talk about how homes are valued. Homes are priced based on the sale of recent comparable home sales that are similar and in close proximity.

When I'm looking to price a home, I will look at recent home sales within a mile or closer of the subject property, and homes that have sold within six to nine months.

Out of those homes, I will narrow it down to comparable homes based on size, square footage, bedrooms, bathrooms and of course style and current state.

Below we will go into detail about how updates can raise the value of a home, while maintenance doesn't. However, they can both help you sell the home faster as they compare to other homes in your area.

 

Maintenance Items

Maintenance items are things that must be done or the home falls into disarray, or things that preserve the home’s value and structure.

These are things that every home, sold for fair market value, comes with in good working condition. These items are things like roof, HVAC system, electrical, plumbing, water and other systems.

I recently had a client who needed a new roof and was quoted $17,000, and in another property a new HVAC system was about $12,000. These expenses are the cost of home ownership, not things that you can demand more for in your price.

This is because it is an expectation that homes should come with these items in good working condition.

Now, the home may not sell for more with these updates but it can definitely help it sell quicker, especially if comparable homes in the area aren't quite as maintained as yours.

Let’s take for an example a used car. If I make regular oil changes to the car and change all of the fluids then I will have a great running car.

That doesn't mean that I can sell it for more solely because I did oil changes. Oil changes are mandatory for a great running vehicle, and I won't be able to use my car for long if I don't maintain it.

 

Updates

Updates are used to enhance a property and can be used to raise the value of a home. Updates are things done to a home above mere maintenance.

Examples of this can be larger decks, custom kitchens, grand entries, luxury bathrooms, finished basements and many others.

These updates can force appreciation in a home by adding value through modernization.

One thing to keep in mind when purchasing a home to update, or updating your current home, is to not overdo it for the area you are in.

If you overbuild a home for the area, you may not see the return from the sale you are hoping.

My recommendation is, if you are completing updates in order to get more for the resale of your home, consult a reputable realtor in your area first.

If you are doing updates to make the home more enjoyable for yourself, then have at it! The sky's the limit!

 

If you have any questions about updates versus maintenance or want to find out what your home is worth send me an email at matthew@precisionhomegroup.com or give me a call on 907.302.1011, and we can schedule a consultation.

 

Residential, Condominium, Multi-Family in Anchorage under $600,000

664 Properties Found. Page 1 of 45.
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2702 Mcrae Road, Anchorage

$600,000

MLS® # 20-3185

Listing Office: Real Estate Brokers of AlaskaAlaska Multiple Listing Service Inc Logo
Photo of Listing #19-19197

11421 Bearpaw Street, Anchorage

$600,000 - 3 Beds, 3 Baths, 2,241 Sf

MLS® # 19-19197

Listing Office: RE/MAX Dynamic PropertiesAlaska Multiple Listing Service Inc Logo
Photo of Listing #20-3082

1008 E 9th Avenue, Anchorage

$599,900 - 12 Beds, 6 Baths, 6,468 Sf

MLS® # 20-3082

Listing Office: Keller Williams Realty Alaska GroupAlaska Multiple Listing Service Inc Logo
Photo of Listing #20-2811

4000 Harrison Street, Anchorage

$599,900 - 9 Beds, 7 Baths, 4,512 Sf

MLS® # 20-2811

Listing Office: Keller Williams Realty Alaska GroupAlaska Multiple Listing Service Inc Logo
Photo of Listing #19-5317

2825 Lily Street, Anchorage

$599,900 - 6 Beds, 5 Baths, 3,674 Sf

MLS® # 19-5317

Listing Office: RE/MAX Dynamic PropertiesAlaska Multiple Listing Service Inc Logo
Photo of Listing #19-5315

2824 Rose Street, Anchorage

$599,900 - 6 Beds, 5 Baths, 3,674 Sf

MLS® # 19-5315

Listing Office: RE/MAX Dynamic PropertiesAlaska Multiple Listing Service Inc Logo
Photo of Listing #20-4032

6032 Heather Wood Circle, Anchorage

$599,000 - 5 Beds, 3 Baths, 2,686 Sf

MLS® # 20-4032

Listing Office: Dwell RealtyAlaska Multiple Listing Service Inc Logo
Photo of Listing #20-2186

2780 W 80th Avenue, Anchorage

$599,000 - 5 Beds, 4 Baths, 4,728 Sf

MLS® # 20-2186

Listing Office: RE/MAX Dynamic PropertiesAlaska Multiple Listing Service Inc Logo
Photo of Listing #20-806

Unit #c - 617 N Street, Anchorage

$599,000 - 3 Beds, 2 Baths, 1,890 Sf

MLS® # 20-806

Listing Office: Keller Williams Realty Alaska GroupAlaska Multiple Listing Service Inc Logo
Photo of Listing #20-387

Unit #2 - 727 O Street, Anchorage

$599,000 - 2 Beds, 3 Baths, 1,748 Sf

MLS® # 20-387

Listing Office: Firebird Realty, LLCAlaska Multiple Listing Service Inc Logo
Photo of Listing #19-15992

L33 B4 D Ava Circle, Anchorage

$599,000 - 4 Beds, 3 Baths, 2,481 Sf

MLS® # 19-15992

Listing Office: Keller Williams Realty Alaska GroupAlaska Multiple Listing Service Inc Logo
Photo of Listing #19-11782

4909 E 24th Avenue, Anchorage

$599,000 - 3 Beds, 1 Baths, 2,468 Sf

MLS® # 19-11782

Listing Office: Keller Williams Realty Alaska Group of Eagle RiverAlaska Multiple Listing Service Inc Logo
Photo of Listing #19-17622

3207 Morgan Loop, Anchorage

$595,000 - 5 Beds, 3 Baths, 2,728 Sf

MLS® # 19-17622

Listing Office: Keller Williams Realty Alaska Group of Eagle RiverAlaska Multiple Listing Service Inc Logo
Photo of Listing #19-16483

1927 Spenard Road, Anchorage

$589,000 - 3 Beds, 3 Baths, 2,600 Sf

MLS® # 19-16483

Listing Office: Herrington and Company, LLCAlaska Multiple Listing Service Inc Logo
Photo of Listing #20-3933
New Listing

15610 Noble Point Drive, Anchorage

$585,000 - 4 Beds, 5 Baths, 3,726 Sf

MLS® # 20-3933

Listing Office: Coldwell Banker Best PropertiesAlaska Multiple Listing Service Inc Logo

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