How Much is a Washroom Worth?

By Leon d’Ancona B.T.L, M.T.L., RRESI, CEO

If you subscribe to the idea that a real estate professional does more than only plain listing and selling a home, then this article is for you.  I would like to show you a facet of what you can do for your clients that very few real estate agents have even considered.  Take the assumption that most people do some renovating prior to moving into their newly purchased home.  If you add to that the fact that bridge financing is easily available, then what I’m about to show you start making excellent sens.

If the average price of a two bedroom in a city core, in this case is $272,489 while a three bedroom is $335,166 then the difference is $62,677 (keep that figure in mind).  For now, we will pick a three-bedroom home.

Now have a look at the difference between two bathrooms and three bathrooms. Grab your calculator and note that the difference between the two is $137,148.

Now ask yourself: is it a given that the three-bedroom house is actually bigger, better, and contains more square feet than the two-bedroom?

Compare the first column square feet with the average sale price to prove that square footage does not necessarily affect the sale price

The chart below indicates that the measure of square footage does not reflect price.  

With this in mind, it is very possible for you to say the following: “My dear Mrs. Homebuyer, why don’t we go for three bedrooms, with two washrooms, with fairly large square footage in the area that you are looking for, and I’m sure you will be able to build a washroom and perhaps even an extra bedroom for less than $137,148.”

Because no one is living in the house, you can organize the construction to be quick, efficient and the bridge financing with today’s rates adds nominally to your mortgage cost.

Very few real estate agents go the extra mile and have information like the charts above to show to their clients.  By providing data like this, they can earn their reputation as being not only realtors but good advisors as well.  It is this kind of information offered to clients that will enhance your stature as a real estate professional.

Leon d’Ancona is North America’s foremost authority on real estate statistics. He is a noted speaker, and his ability to amuse audiences with his real estate statistics is legendary. 

Author of The Official Guide to Home Price Changes, and many other publications. Leon is the guiding force of  REality® software, an easy to use amazing software updated every month.

He is easy to reach and is always available for clarity in what is going on in any real estate market. 877-785-4321

Share:

Share on facebook
Share on linkedin
Share on twitter
Share on whatsapp
Share on email

Most Popular

Get The Latest Updates

Subscribe to REality’s Blog

No spam, notifications only about new products, updates.

Categories

Read more

Related Posts

How Much is a Washroom Worth?

By Leon d’Ancona B.T.L, M.T.L., RRESI, CEO If you subscribe to the idea that a real estate professional does more

Book a Demo

Contact us

Our Offices

Toronto

2792 Dufferin St.,
North York, ON
M6B 3R7

Miami

444 Bricknell Ave.,
Miami, FL,
33716

Los Angeles

9465 Wilshire Blvd.,
Beverly Hills, CA,
90212

Email

Privacy Policy

As a matter of practice, we maintain our clients information on a strictly confidential basis, and do not disclose such information to third parties, unless required by law. If you have any questions or comments about our personal information practices, or would like to make a written request for access to your personal information or request to delete your information, please contact our Privacy Officer at info@restats.com or mail us at Privacy Officer, IMS Incorporated, 2792 Dufferin Street, Toronto, Ontario, M6B 3R7

Got Questions?

Our Offices

Toronto

2792 Dufferin St.,
North York, ON
M6B 3R7

Miami

444 Bricknell Ave.,
Miami, FL,
33716

Los Angeles

9465 Wilshire Blvd.,
Beverly Hills, CA,
90212

Email

Fill in your details and we’ll get back to you in no time.

The form was sent successfully.

We will get back to you shortly.