For 20 years that I’ve been involved in real estate, you had the expectations where a home buyer would go and look at brand new homes, new construction homes and then go and look at other homes that weren’t. They would still expect new kitchen cabinets, new bathrooms, fresh paint, new floor coverings. If that’s not there, they would, in their mind, price what it was going to cost to create that, which is higher than what we would probably even take into account.
Especially in today’s market with those television shows. They do remodeling and updating that even on less expensive houses are what I would consider over the top.
The buyer’s really have a high expectation that if they’re going to pay that retail price, that house better be in great condition. It better have a new kitchen, new bathrooms. It better be nice. If it’s not, they are really going to take those costs to upgrade a house into account.