How much Value does a Suite Add?
With home prices increasing and low inventory, a lot of homeowners do not have a place to move too which is often holding them back from selling. One area that we are seeing a drastic increase in sales is homes with suites or tenant-occupied homes.
Looking at the number of sales in the last 2 years for homes with a suite the number of sales from when Covid started to now has increased rapidly in the last 18 months. Currently, there have been 685 sales of homes with a suite in 2021, comparing it to the entire year of 2016 where there were 903 sales.
Looking at the inventory side of the equation below is the 5 year average of 3,286 new listings that come on the market each year, however, so far in 2021, we are only at 1,156 which is down substantially from how much demand appears to be out there. Last year there were 3,398 new listings with a suite.
So far in 2021, the average sale price for homes with a suite was $931,207 in comparison to $882,919 for homes without a suite a difference of $48,288. Last year homes with a suite had an additional premium of $39,115 in average sale price.
Increases in prices buyers have to get creative and either look at getting homes with a suite to make things work or make a sacrifice, especially while competing with a lot of out of town investors looking to make things work its safe to say having a suite in your home is an additional value of $40,000 to $50,000 in sale price.
Have a great week and feel free to reach out if there is ever anything I can do for you!
-Mark