Too Customized to Sell??
Part of the joy in owning an apartment comes with the fact that it is 100% yours. Gone are the days when you have to deal with your landlord’s ugly countertop choice or your landlord’s definition of “modern appliances.” When you own a home, you can ensure that everything is up to standard – your standard.
For the most part in New York City, this means that appliances will stainless steel, walls will be neutral colors, and toilets won’t have that old metal handle.
But what happens when the owner’s taste isn’t in line with everyone else’s?
This is something that we are seeing more and more of, specifically in very expensive apartments. The more space an owner has, the more likely they are to customize it to their personality. Always wanted to bathe in a tub of gold? No problem. Want one bedroom in a fiery red? That’s fine, there are four others.
However, when these owners are ready to sell, their pool of prospective buyers often doesn’t agree with the aesthetic choices – or more importantly, the price tag behind the aesthetics.
A big misconception about property value is that any money a seller puts into a home will automatically translate into a higher sales price. But unless you find someone with the exact same style as you, you might have to factor in a cost for the new buyer to rip out your customized ideas.
Too rich for my taste
For example, a listing in Soho recently hit the market showcasing a $140,000 customized gold bathroom, with everything from a gold-plated tub to a gold money sign on the wall. In all likelihood, no matter how technically expensive or high-end this is, a buyer is going to want to rip it out – unless this buyer has always dreamed of having their bath mimic a music video.
In Greenwich Village, an owner recently installed a 30-foot saltwater pool on the bottom floor of his townhouse on Cornelia Street. Most people don’t feel the need to swim indoors, so the owner needs to acknowledge that his home will likely take much longer to sell. He’ll have to find a specific buyer – one who wants to throw indoor pool parties.
Not just a problem in big homes…
This fact holds true even in a small apartment. Owners who buy an $800,000 one bedroom and love to cook may go all out on their kitchen – Viking stoves with six burners, top of the line appliances, etc. While this is great, when the apartment hits the market, it’s likely that the pool of buyers coming to look at a one bedroom with a small kitchen is going to say “Well it’s pretty – but I’m not a chef, so I’m not willing to chip in extra thousands just for this appliance.”
Is this only true in New York City?
Once you leave the apartment world and head to the houses, the amenities only get crazier and crazier.
50 Cent’s home was recently showcased on Million Dollar Listing New York. In addition to being one of the largest houses based on square footage in the area, it also had a nightclub in the basement, complete with a stripper pole.
Slash’s home in Los Angeles was remodeled with a DJ booth, skate ramp, and a nightclub. Along with these amenities come wild stylistic choices like leopard carpets and light show effects – but the people who can afford to take over these homes often have more conservative tastes.
If you go to sell and don’t have the time to wait for the “right” buyer who will appreciate all the house’s nuances, then you’ll likely be forced into a price reduction. So if you’re planning to purchase a home and make custom choices, just make sure you have a reality check with yourself. Are you going to hold your home long enough that customization is worth it? Or might you be looking to flip your home in a couple of years and regret pouring money into a retractable roof over your master bedroom?
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