805 Local

So here we were were — sitting in the client’s dining room completing the stacks of listing paperwork along with the necessary California disclosure requirements.  Mrs. Seller starts telling us about the wallpaper she recently had installed.  In order to get the full view of the wallpaper, we move to the entry with 12 foot ceilings which were all covered in more wallpaper.  Mrs. Seller was so proud of the wallpaper, too.  So then she shows us that even the closet had the same wallpaper!  Did we mention that Mrs. Seller paid $50 a roll for the wallpaper?  And there were matching drapes and valances?

We move on to other rooms in the house — all with wallpaper plus the closets were wallpapered, too.  The whole time we are thinking about a future prospective buyer wanting to remove the wallpaper and discounting the price of the house because of the time, mess and expense of wallpaper removal plus resurfacing the walls and repainting…..

Time for a Real Estate Lesson

Today’s lesson deals with the difference between an IMPROVEMENT and an ENJOYMENT.  Even though Mrs. Seller’s house was tasteful, the majority of buyers would not have the same type of furniture to share enjoyment her personalized wallpaper.  The wallpaper was definitely an enjoyment, not an improvement.  So hopefully Mrs. Seller enjoyed the wallpaper while she lived there.  The next owner would more than likely get rid of it.

Improvements add lasting value and appeal to a broad audience such as the installation of dual-paned windows.  Appraisers look for improvements to increase the appraised value of a property.  Enjoyments are more personal and bring a sense of happiness or pleasure to the homeowner such as purple carpet.  Of course a home improvement can be labelled both an improvement and an enjoyment.  An example would be replacing a heavy, old garage door with a roll-up garage door plus an opener which would improve a property and would offer enjoyment as well. 

If you are a homeowner and thinking about doing some home repairs, stop and ask yourself “Is this really an improvement or is it an enjoyment?  Does this add lasting value?”  If you are planning on staying in your house and NOT moving, knock yourself out with your enjoyments. 

Remember if you are moving in a few years, those enjoyments you might be adding won’t add to the bottom line when you go to sell.  In most cases those personalized enjoyments actually decrease the saleability of the house and ultimately the sales price.  Be careful!!

Back up to Mrs. Seller — every Realtor that showed the house commented on the extent of the wallpaper but we eventually did sell the house. Thank God it was a seller’s market at the time.   Yes, the new buyer did remove all of the wallpaper.