Over the last couple of years, San Diego has been a tricky town for real estate. Those considering selling their homes are looking at fantastic returns on their homes. While the impulse may be to sell off the home as quickly as possible, putting a little care into the kitchen and bathroom and performing minor upgrades and maintenance on the roof, HVAC, and plumbing can end up being more lucrative than once thought.
“There aren’t a lot of homes for sale right now,” says one San Diego real estate analyst, “so if you’re thinking of selling your home, now is the time to do it. The San Diego housing market has once again hit record highs, so if you’ve put off replacing or refacing the cabinets, or doing necessary work on the bathrooms to get your home ready to show, it’s the perfect time to get on that.”
Traditionally, a good home improvement would net a homeowner about 75% on the cost of the installation. In today’s market, the return is much higher.
“The median value of a home in San Diego right now is $550,000,” he continued. “That’s higher than it was in 2005, and this time, it isn’t being caused by an investment frenzy or subprime mortgage lending. It’s simply being caused by a lack of inventory in the housing market. Interest rates are low right now, but the pace of construction for new developments isn’t keeping pace with the amount of click here demand for homes in the market. This is true all over the country, but it’s particularly true in San Diego, which has the second highest property values of any major city in the US. Only San Francisco has a higher median value for homes. With the value of property escalating, and prospective buyers finding themselves in prolonged bidding wars, the potential return on investment for seller for these sorts of improvements is higher than the 75% you would normally expect to see.”
“In the real estate business, there’s an old saying that goes something like ‘you’re not selling the home, you’re selling the kitchen.’ I would argue that’s pretty true, with the other major selling point being the bathroom. People typically look at the bedrooms and see a blank slate; it’s one of those areas they want to personalize. They don’t want to have to dump major money into the kitchens or bathrooms. They don’t want to have to spend a ton of money replacing the cabinets either. Even in this market, a prospective buyer is not going to buy a home where the kitchen needs major remodeling. They’re better off just waiting and renting in the meantime. On the other hand, a seller can see a major return on their upgrades and updates, particularly to the bathroom and kitchen.”