I had a client ask me about a gorgeously renovated house in South Lexington the other day. It looked like something right out of HGTV.
What was the problem?
It was easily $100k more than anything in that neighborhood. It was around $350k in a neighborhood of $180-225k houses.
It was too risky.
Now, it could be this was the first house to be totally renovated and many more will follow in this neighborhood. Or it could forever remain the one house that doesn’t really fit in. Only somebody with a crystal ball could tell. For now, I think it is too risky to be that first person to pay waaaaay more than what any house in the neighborhood is worth. If this isn’t the next “Up and coming” neighborhood, then the buyer for this house will find that in 10 years, nobody wants the 2017 trendy finishes they paid an extra $100k to have. It will just be another outdated home in the neighborhood and no longer the best one……and will be worth about $180-225k adjusted to inflation.