Its Mid January and we are slowly starting to see inventory come on the market. At this time of the year, the inventory make up is a blend of homes from last fall that didn’t sell as well as new listings. One of the benefits of being a Realtor is the ability to tour many homes during the traditional Broker tour. I enjoy walking through them, taking mental notes on the home and its relationship to its list price.
On last week’s Los Altos broker tour, we went through a beautiful new construction home located on an excellent mid-town street. It had a good floor-plan that flowed well and the quality of construction was top notch. However, something wasn’t quite right.
The appliances and bathroom fixtures were cheap relative to the overall “value” of the home. It was as if the builder ran out of money towards then end of construction and went down to our local Sears (no disrespect to Sears intended) and bought any “in-stock” appliances. It’s not like the appliances were junk. They weren’t. They were mid line Kitchen Aid stainless steel appliances. Nice for most homes, but not for a $3,300,000. Los Altos estate.
As I left the home my immediate thought was, “What was the builder thinking?” How can you build such a beautiful home yet finish it off with anything less than high end appliances? To quote a saying from my father, “For crying out loud,” spend the additional $25,000. and install top of the line commercial grade appliances. After all, the home is being marketed as a “Stunning Masterpiece.”
The buyer for this type of home is expecting the home’s finishes to be top of the line. Anything less, detracts from the home’s perceived value and eventual sales price. By not incorporating top of the line appliances into the kitchen and higher end fixtures in the bathrooms, a buyer will wonder “where else did they skimp?” “Is the plumbing done right?” “Is the wiring installed correctly?” Does the house have a foundation?
To all the builders out there, design and build a home that matches the market of buyers that you are targeting. This home is built and will sell. How quickly and for how much, we’ll have to wait and see.