One Recipe For
Depreciation In Your Condo
A dozen years ago, Center City saw a BOOM in new construction. The number of available condos in town SKYROCKETED and after a decade or so, many of those condos came back on the resale market.
One of TWO things likely happened:
1) The owners took very good care of the property and upgraded with some groovy paint, maybe replaced a few of the contractor grade lighting fixtures, added some new mirrors in the bathroom, wall paper on accent walls, etc. When they sold they saw a 10% increase in their value.
2) The owners used the condo then rented it out to Billy the careless tenant who beat the hell out of the place. And now a Foosball table sits in the middle of the dining room and a smelly futon graces the living room. The condo hasn't been updated or painted and now it smells like Billy. It would likely be that when these owners sold, they did so for 10% LESS than they originally paid.
Not uncommon. Why? Because buyers don't buy bricks and mortar, they buy feelings and emotions and a
20% price spread between a gorgeous condo and an ugly one is right on the money, generally speaking.
Which would you rather?!