Home Buying in Milpitas>Question Details

Trulia, Home Buyer in Milpitas, CA

I am buying a house with lot of upgrades like sunrooms, granite floor etc. I really dont need the upgrades,

Asked by Trulia, Milpitas, CA Tue May 27, 2008

but i liked the home. I think i am ending up paying about 30K more than the home's worth for upgrades. Is it wise. Does the home with such upgrades like sunrooms, spa sell well in a good market? Thanks

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6
First, what does your agent say?

If you don't care about the upgrades, ask yourself whether you'd have spent that same amount of money on a house without those upgrades. If your answer is no, then it isn't a good value from your perspective.

Some upgrades help a home sell faster, or for a bit more money. On the other hand, there are some upgrades that will instantly "date" your home. Some things are "in" for a few years, then go out of style. I don't know the Milpitas market, but--where I am--well-constructed sunrooms are a nice upgrade that's been in vogue for quite a while. On the other hand, I wouldn't be surprised if stainless steel appliances and granite countertops will, in 30 years, irrevocably date a house as being built between 2000 and 2010..
1 vote Thank Flag Link Tue May 27, 2008
Don Tepper, Real Estate Pro in Burke, VA
MVP'08
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Trulia,

Don't buy it. Why pay for the upgrades when you don't see any use/value in them. There are plenty of homes for sale in the north/east valley that should be able to meet your needs. I would sit down with your agent and go through a list of wants and needs. Then go out and look for a home in a good location. You can add value to it later with upgrades should you want to. Good luck.
0 votes Thank Flag Link Thu May 29, 2008
Hi Trulia,
First of all, it's not clear where you are in the sales process. Are you thinking of making an offer? Are you in contract to buy and have you removed contingencies yet? Knowing this is necessary to advise you about your options. I'll assume you are already in contract, since it's obvious that you could simply reduce your bid price if you are just making a offer. In either case, the seller is under no obligation to accept a lower price, but may choose to compromise in order to make the deal go through.
Concerning value, the sales price of a home is not made up of the sum total of the assets included. Your decision to buy this home has to do with it's overall attractiveness and desirablity. It doesn't really matter what the seller paid for those items. It's not reasonable to conclude that the sales price is too high and expect the seller to lower the price by $30k just because you have now decided that you don't like them. If you are concerned about the expense of removing these items, the spa can be discarded for around $300. The sunroom cost could vary greatly depending on the quality of construction and permit issues.
Regarding resale value, that depends on how soon you intend to move. As others have said, styles and tastes change and the longer you stay there, the more you are likely to change things also. But just as all homeowners do, you will have to make a decision whether the change is intended for your own comfort while you live there or to increase market value when you sell. I hope you find this useful.
Good luck,
Roland
0 votes Thank Flag Link Tue May 27, 2008
Only by visiting a number of homes (in the immediate market) can you and your agent decide if the home you are buying is a good 'value'. 'Value' is the key word here. What you may find a good value may not necessarily be what another person feels is a good value. Determine how long you are going to be in the home, and if the upgrades and options you are paying more for now will bring you enough 'pleasure' during the time you live there to justify the additional cost. Also, how does this house stack up to others in the immediate area? Location should be the number one concern. Options and upgrades can always be added later (and sometimes for much less). So, in a nutshell it all depends on the competition when you go to sell.
0 votes Thank Flag Link Tue May 27, 2008
Some homes in certain neighborhoods are expected to have certain upgrades. Right now it seems that everyone expects granite and stainless steel. I have to agree with Don and say that those upgrades are definately a fad of this era and will be outdated in the future. As long as you are aware that you are paying extra for the upgrades that you do not want, you are making an informed decision. If you are planning to sell in the near future you must take into consideration that fact and realize that you may not find a buyer willing to pay extra for those upgrades.
0 votes Thank Flag Link Tue May 27, 2008
If you don't want to pay the extra 30K, buy a home without upgrades. I'm sure the upgrades cost much more than the 30K extra you are paying for it. If you can afford the 30K and you like the home, get it.

Why do people ask questions that they already know the answers to?
0 votes Thank Flag Link Tue May 27, 2008
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