A newly renovated house by an owner that has never lived in it, may not always retain a high value. It is important to inspect a house completed purely for flipping more closely than a home that was the seller’s primary residence because the flipper makes money on building with lower quality materials and cutting corners to deliver a product that looks equally good to a high end product. The lower quality materials may have a shorter shelf life before requiring new replacements.
Does the house stand out as a mansion compared to the neighboring houses? Imagine building a luxury condo adjacent to a landfill and poultry farm. The surrounding homes of the area will pull the value of the mansion lower because it will be difficult to find buyers for a mansion in an area with a low income demographics.
What if a house have been customized into resembling a spaceship? Let’s say that you paid a premium for the spaceship house. When it is your turn to sell, will you be able to find a buyer willing to pay the same premium as you originally did. The rule of thumb is to not overpay for highly customized houses.
0 Comments