When buying or selling a home, you have to make an accurate assessment of the home’s value and the demand in the current market. Unfortunately, this is not always as static as it appears. The value may be different to different buyers.
For instance, imagine that someone has a below-ground pool installed at their house. They bought the home for 300,000 and it costs another $30,000 to add the pool. This is Florida, so they assume that a pool is going to increase the home’s value by that $30,000. They feel like they have added a great amenity that makes their home more attractive to buyers than similar homes in the area that do not have pools.
That may be how it works for some buyers. They love the pool, it’s on their list of must-haves, and they’re willing to pay more for it to avoid the work of installing one.
Others, though, may not want the home because of the pool. Some see it as endless work and upkeep that they don’t want or need. Others see it as a potential hazard for the children, and they have vowed never to own a home with a pool. In this way, the pool can actually drive the home’s value down by shrinking the potential group of buyers. When you have people who avoid the house on account of the pool, the sale price may drop.
As you can see, real estate transactions can get complicated and both sides may not agree on the value. Make sure you know what legal options you have on either side of this equation.
