There is a common misperception out there that if you own an older home in one of the hotter parts of town where there is a lot of development going on , and put it up for sale, it will be bought and torn down automatically by a developer.
That just isn’t the case.
Now, if the home actually is a tear down, then the highest and best value probably is the lot value. But not all homes are tear downs. And nice homes that people can live in have a value all their own. Put it this way: lot value is the minimum value. But a property with a lovely updated, well-maintained home, regardless of age, has a much greater value than a lot alone.
What’s the difference in price between a well-maintained home and a tear down, with similar lot sizes? Well, here’s one example from my street in Westboro.
An older home that was built in the 1950s sold for $ 910K last year, to a family. I see the kids playing outside every time I go for my daily walk. They love the big yard and the mature trees.
But another house several doors down, same lot size, sold to a developer for $ 710K around the same time. It really was a tear down, and there was a $ 200K difference in value because of it.
So, if you have an older home, don’t stop fixing it up because you assume it will be torn down eventually just because you see construction all around. You could be sabotaging your chances of getting the highest and best price for your property!
Not sure what to do? Talk to your realtor! They can tell you what lots in your area sell for, compared to homes in similar condition to yours.