Location, Location? How About Condition?

Laguna Niguel is a wonderful place to live. The first homes were built in the early 60s and for the most part the area is completely built out with the exception of a few lots in San Joaquin Hills.

We all have heard the real estate mantra: Location, Location, Location. You can’t change the location of the home and it is very difficult and expensive to change the floor plan.

You can and should update the interior and exterior of your home as it ages. Sometimes clients struggle with the fact that the exact same model of home sells for such different prices. Usually, if it is not obvious lot or view differences, it is because of the remodeling.

Appraisers say that when a community or tract gets to about 20 years old the owners should be updating. In general, if home owners in an area do not start updating, or cannot update, then the community enters a condition of neglect and then eventually “blight”.

Kitchens and baths are the remodeling projects that will return the most money at the time of sale, often returning close to 100 percent of the cost. There is another term that appraisers use which is “functional obsolescence.” This is most commonly seen when homeowners add on to their home in a way that is not very useful, such as a bedroom with no access to a bathroom, or a huge bedroom with a very small closet. Some homes built in the 60s have tiny master bedroom closets and ¾ master baths. For many modern buyers this is functional obsolescence.

You have heard the proverb, “The bigger they are, the harder they fall.”

I think of this when I see large homes in great neighborhoods that are 20 or 30 years old and have never been updated at all. Remember that the larger the home, the more money will be required to bring it up to modern standards. Also remember that buyers will always triple the actual cost of remodeling in their minds as they look through your home. 

The moral of the story might be that you should update your home and enjoy it yourself before you sell! Then when the time comes it will sell more easily and for a higher price.