Looking for a remodeled home for sale in Paradise Valley or Scottsdale.. and wondering how much value is added to a remodeled home versus a non remodeled home? The values are vastly different and there is almost no comparison in pricing. I recently educated another real estate agent on this; as she had submitted a number of 'comps' for a newly remodeled home. In this instance, collectively we were providing information to a home seller, in order to help him determine his homes value. The comparable sales she provided to help were, similar size and age homes... and in very very close proximity to the subject property but were not remodeled. I had shared with her sales of homes that were close... but not as close and some homes that were further away but in "equally valuable areas of Paradise Valley" and were remodeled .
Two key facts are important in determining a luxury homes value.
1. A comparable luxury home need NOT be in a very close proximity to the subject property; Because, value is determined ultimately by what a "similar luxury buyer may perceive as value in a similar area". Meaning as long as data and perception of another areas value are equal in to the subject area, AND the home is of equal finish, size and design, of the home from another area, the home may be used as a comparable. Again, however the area MUST have the same value as in the subject area.
2. Remodeled homes, even as close as the home next door is not a comparable if one home is updated and remodeled ...and the other home for sale is not updated and remodeled.
Unfortunately there is so much mis -information relayed by poorly educated real estate agents and well intentioned but poorly educated consumers, that it is costing home buyers and home sellers BILLIONS every year. On a smaller scale, most home buyers and sellers lose between a minimum of $50,000 to over a million dollars per transaction in Paradise Valley and Scottsdale Real Estate; due to poor representation, poorly relayed and/or inaccurate information.
To illustrate my point I sent the real estate agent with many years experience, two homes built same year, in same gated community within three hundred yards of each-other.
Let's take a look at the two sales I sent her to illustrate how different the pricing was; The value adjustements would have been great to use as a "comp sale" , again both these homes were nearly identical in size, age and location yet one was remodeled. - See The homes below -
I hope this article helps you understand our market better... How about this question... Ever wonder how much difference a floorplan can add or subtract to a homes value??? Call me if curious 480-450-4632
BTW... The subject home sold for within $30,000 of the value I attributed.. There is no exact science; this is incredibly true now with so, so many home buyers OVER-paying for homes right now in both Scottsdale and Paradise Valley, these home buyers will sadly only find out how much they over-paid when it comes time to sell.
The first home shown was beautiful and sold for $341.00 per square foot.
The home below was remodeled and sold for the equivalent of $495.00 per square foot- Approximately $700,000 in value separated the two.