Home Selling in Mill Valley>Question Details

Astolp, Both Buyer and Seller in Mill Valley, CA

What premium does a new house have over a remodeled house with the same sq.footage within 1/2 mile of each other?

Asked by Astolp, Mill Valley, CA Mon Apr 5, 2010

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5
Michelle Morrone’s answer
Many buyers are drawn to newer homes because they are being built energy-efficient. A new construction at a slightly higher sale price may in the long run be less expensive than a lower sale price on an older home (even with remodeling) due to the savings you will see in your monthly bills. Additionally, newer construction tends to have the layout most people are looking for today (a laundry room instead of a formal living room, a great room open to the kitchen, 1 story ranch style instead of 2 story or vaulted ceilings that some feel wastes space and reduces energy efficiency). As some people said below, there are many possible answers to your question but I know this is what I have seen.
0 votes Thank Flag Link Tue Apr 16, 2013
Regardless of the proximity to each other, when you compare a new house with a remodeled house sometimes there is no difference in the value. A new home has certain newer building standards and builders have to adhere to certain codes and materials, so in some ways it could be better. However, if a home, for instance is a vintage home and has been upgraded, there are some features that give the home the "charm and character" that cannot always be duplicated. If an older home has just been cosmetically remodeled and still has old plumbing and electrical wiring, that would eventually have to be upgraded or replaced by the prospective buyer, whereas in a new home everthing is brand new. So there is no exact answer to the question. The buyer will usually pick the home he feels drawn to emotionally and also which home affords the best life-style.
0 votes Thank Flag Link Wed Feb 20, 2013
As the other answers imply, your question is too broad. I'm sure you also know that a 1/2 mile difference in Mill Valley can make an enormous difference. In addition, you have access, topography and view, etc. to factor into the situation. Generally, this particular market tends to reward new and/or move-in ready homes. It isn't so much that these homes sell for more as it is that they tend to sell quicker. Some of the best opportunities are properties that need some work.

Best of luck.
0 votes Thank Flag Link Tue Sep 21, 2010
Hi Astolp,

A remodeled home may have a premium but it would really be up to the buyer to determine how much so. This is a buyers market and as more and more inventory hit the market in the next few years, it is going to cause a drag to the prices. Prices are going down. Financing is difficult to get, this is going to cause more of a drag to the upper price ranges. You may expect some premium with a newer home but the price trend is going down so I wouldn't wait too long with a high priced home.
0 votes Thank Flag Link Sun Apr 11, 2010
Without specifics you won't get a reasonable response. It depends on the particular homes, their location, their quality, etc. Virtually any REALTOR® will be happy to give you their opinion which should be substantiated with an argument explaining how the conclusion was reached.

After reading the two questions you've posted I tentatively conclude that you should tour properties and learn to determine value yourself. I strongly prefer my clients learn current market reality, and work to help them, so that their decisions are theirs. I always give my best opinion but the seller is final arbiter on price and all actions.
0 votes Thank Flag Link Mon Apr 5, 2010
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