Upgrades and Location

**fozzy40** · 03-01-2008, 02:55 PM

I'm sure these are probably a loaded questions but:

1) I'm in the process of buying a condominium in Chicago. Great location, easy access to transit, great building. The unit itself is nice but not upgraded yet (i.e. granite countertops, stainless steel appliances, you get the picture.) How much does "upgrading" actually add to the value of the unit?

2) I also noticed that there is a pretty high priced condo hi-rise going up across the street from my building. Luckily this structure will not obstruct the beautiful skyline view from my unit but probably will for the units on the other wing of the complex. How does the erecting of this building impact the value of my unit? Does having high property real estate around me affect the value of my unit?

Thank you.

**carlam** · 03-03-2008, 05:35 AM

Upgrades can add value if done correctly - kitchens and baths are where you will get the most return. Just don't over improve. Discriminating buyers want these kind of upgrades.

A high end condo building being built across the street from your unit will impact your building in one way or another. Luckily the view from your condo is unaffected by the one being built. With a high end condo, comes high end condo fees. Not all buyers can afford a high end condo with all the fees so you could benefit from that. A suggestion, if you are considering upgrading your condo - offer similar upgrades to attract their kind of buyer.

**Mike Taylor** · 03-03-2008, 05:42 AM

Carla is right, kitchens and baths is typically where you will see the best ROI. Get a feel for what is the norm with similar units and don't go way overboard.

**PPP** · 03-03-2008, 09:46 AM

Kitchens and bathrooms are the rooms that are the hardest to re-do so if they're good looking then it's easier for buyers to be attracted to the property. If you're doing up to sell then keep it neutral (but smart and contemporary) and find out what your market wants.

But if you're doing up the kitchen and bathrooms then do other rooms as well, even if that just involves a coat of paint and changing door knobs. Nothing's worse than a half-finished refurb.

I think price will be an issue with this new condo building. If the price of your unit (if you sell) is going to be similar to ones in the new building, then most people would rather something brand new if they can. If you price competitively then you can attract those who couldn't afford the new place.

**fozzy40** · 03-05-2008, 05:59 PM

Thank you everyone for your input.

**JJohnson1985** · 03-06-2008, 05:55 AM

I have done nothing more than read a few books and taking classes, so I don't have a license yet, keep this in mind. Even though there are general rules of thumb, it always comes down to your local market. Try to find good comps to find out how much more buyers are paying for upgraded kitchen ect. compared to ones that need the update. It maybe hard for you to find though but it is the best way to truly know.