Jim in Orlando

Homeowners Feel the Pain of Over-Improvement Syndrome

Very good article Tim! Yes, things have really changed, enough so that the HGTV shows look laughable right now!

Back in 2002 I bought a nice house, corian counters, older kitchen, etc. A neighboring agent warned me back then don't over-improve, as it was a small home for the neighborhood and was valued properly. I sold that house in 2006 due to job change; it was 6 months on the market and I sold basically for what I paid plus some minor upgrades I had completed. The new owners however immediately invested $200K in marble floors, granite kitchen, and new bathrooms - now the house is back on the market for $225K more than they paid me and I don't see how the market can support that price!

But wszwarc writes "the housing downturn completes its cycle later this year" - I don't see that at all. We are just beginning the downturn and property owners are still in the denial phase. Long long way to go here.