The usual debate continues: are prices too high? Are they going to drop? How much and when and how much does where matter. Blah, blah, bleeping blah.
This comment, by someone who wants to sell her house, caught my eye:
She says her house is valued at 600K, asking 400K. In the house for about twenty years, here's the work they did on it during that time:
"We've put in 40k in a new kitchen 10 years ago and 15k in the last two years for new roof, outside painting & septic system."
Got news for ya: a 10 year old kitchen remodel is done. You don't get anything for it. Particularly in a 45 year old house. She didn't mention a bathroom redo -- who knows how old those are. If _only_ 15K has gone into a new roof, painting and a septic system, I gotta be worried about this place. Assuming there are at least 2 bathrooms, I would expect to have to shell out for a new kitchen within five years (60K+), both bathrooms possibly before moving in (probably 50K+ between the two, and that's assuming there are no horrifying surprises). It'll need new paint within ten, whether you did it or not, and it sounds like they cheaped it up. Hopefully they didn't cheap out on the septic. So, _yeah_ the buyers want a discount. Have you _heard_ of depreciation? That's what property _does_.
Everyone expects this shit gets more valuable over time. Got news for you: only if you maintain it. And I don't mean sweeping and mopping.