When someone insists on making expensive improvements that won't add value to a house they intend to sell, it can be a delicate situation to address. Here are some suggestions on how to approach the conversation:
Express Understanding: Begin the conversation by showing understanding and empathy for their desire to improve the house. Acknowledge that they may have specific reasons for wanting these improvements.
Share Objective Data: Provide them with objective data and real estate market insights to support your point of view. Show them examples of similar houses in the area that didn't recoup the investment on such expensive improvements.
Explain the Return on Investment (ROI): Explain the concept of return on investment and how certain improvements are more likely to yield a higher ROI when selling the house.
Highlight Cost-Effective Alternatives: Suggest more cost-effective alternatives that can still enhance the appearance and appeal of the house without overspending. Focus on improvements that are known to add value to homes.
Consider Timeframe: Discuss the timeframe they intend to sell the house and explain that some improvements might not have enough time to make a significant impact on the selling price.
Factor in Buyer Preferences: Highlight the preferences of potential buyers in the area and how certain improvements might not align with what buyers are looking for.
Discuss the Risks: Address the risks associated with over-improving a property, such as the possibility of not recouping the investment and potentially deterring potential buyers.
Invite a Professional Opinion: Suggest getting a real estate agent or home appraiser's opinion to provide an unbiased assessment of the potential return on investment for the proposed improvements.
Encourage Prioritization: If they are set on some improvements, encourage them to prioritize the most impactful ones that are likely to add value.
Respect Their Decision: Ultimately, if they insist on proceeding with the expensive improvements despite your advice, respect their decision. Offer your support and wish them the best in their selling process.
The goal of this conversation should be to provide valuable information and guidance while respecting their autonomy in making decisions about their property. Remember that people can have emotional attachments to their homes and may not always make decisions solely based on financial considerations.