Market Conditions in 30317>Question Details

Iluryan Ente…, Home Buyer in 30306

Remodeling in Kirkwood. Will I get a good return on my investment? Is Kirkwood really worth it?

Asked by Iluryan Enterprise, Inc., 30306 Sat Feb 23, 2008

I have a single story, 4/1 rental home in Kirkwood, that is 1240 sq feet. The property is about .25 mile from the Kirkwood Rd and College Ave intersection. The home/land has not been updated since being built in 1990, and appraised for 157K as/is on 10/07, when trying to get a equity loan at 75% LTV.

I hired a contractor, who did quality work, but I possibly overpaid (30k) to do the following upgrades and repair, however, before the upgrades these features had about a grade of D

New hardwood floating floor throughout the home.
New formica counter tops
Refinished Kitchen cabinets, new hardware
New roof - Replaced rotting siding
New interior and exterior paint. Pressure washed exterior
New HVAC, water heater, attic fan
Updated bath, added a 2nd bath, 10'x14'(now a legal 3/2)
Slightly new, matching appliances from Craigslist (washer/dryer,stove, refrigerator)
-Updated plumbing

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Answers

2
John is right, an appraisal is a good way to value the property, as is, right now. However, with the recent news about buyer demand around Atlanta being significantly down, even further than last Autumn, and the fact that "when demand declines, prices soon follow," the house that you are selling is only worth what a ready willing and able buyer will pay for it in March, April or May. Your price can not be based on anything other than what tomorrow's buyer is willing to pay. I'm a Kirkwood based Realtor, and I assure you that Kirkwood is worth it, but your house may or may not be.

"When demand declines, prices soon follow" is a statement that supercedes a February appraisal based on dated sales data. The house is only worth what "one" buyer is willing to pay for it.

So you have competition - lots of it. The competition is not just in Kirkwood - the better school district in Oakhurst is attractive. The tree lined streets and retail appeal of East Atlanta Village is attractive. East Point has a lot of intrinsic value. The Westside is up and coming, and demand is pretty high over there. Your Buyer will look everywhere, not just Kirkwood.

So, is Kirkwood really worth it? Sure it is. I live here, and I plan to live here for many years. My house has gone up in value over 20% in 4 years. Look at the retail improvements in the area in just 3 years. Look at the overwhelming uplift in the past 5 years. Look at the incredible proximity to highways, retail, restaurants, Midtown, Downtown and the City of Decatur. The fundamentals are good, for long term investment. Of course, Kirkwood is really worth it.

So, about your real estate investment...were the formica countertops "really worth it?" Is the added bathroom an efficient placement? Does the house have "flow?" Does the "curb appeal" set it apart from the 350 houses that compete with it?" Will it be one of the 75 that sell in the next 3 months? Were the "slightly new" appliances "really worth it?" Was the "floating floor" really worth it?"

My business partner, Greg Ruis, "The Pricemaster" and I will drop by the house this week and offer a free price opinion. Would that be OK?
0 votes Thank Flag Link Sun Feb 24, 2008
Only a certified appraiser will be able to give the exact value of the property after the renovations. 4/2 homes in that area have sold for 260+ in the past but the current correction going on in the real estate market will have an affect on that number. I didn't find any recent sales or new listings in your exact area to compare a 4/2 property to. I had to expand the search to include the entire 30306 zip code. That returned a wide range of results with some as even as high as $859k. So, I don't think you will find the answer you're looking for in a forum like this. If your plan is to flip the house then providing an appraisal to any prospects will certainly add confidence to the buyer.

If your plan is to live in the home and then sell it in the near future, consider consulting an accountant on the tax benefits from a capital gains perspective by selling in less than 3 years.

Best of luck,

John S. Dodson
L&M Property Group, LLC.
http://www.realestateagentinatlanta.com
0 votes Thank Flag Link Sat Feb 23, 2008
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