They want how much?

[They want how much?]

They want how much?

Don't price yourself out of the neighborhood with a too-fancy renovation.

NEW YORK (MONEY Magazine) - Houston Rocket. Triple-mint '70s contempo on cul-de-sac in Prestonwood Forest. 4 bed, 2 bath, 2,115 sq. ft. High-end renovation, plus outdoor deck, spa, gazebo. Dream price: $200,000. Actual sale: $144,000.


The lowdown
Houses in this middle-class neighborhood, about 30 minutes north of downtown Houston, have been selling for $52 to $71 a square foot, or around $121,000 on average.

But when this home was damaged by a tropical storm three years ago, owners Karen and Jim McSheehy didn't just repair the damage, they went all out: granite countertops for the kitchen and bathrooms, stainless-steel appliances, custom-built hardwood cabinets, a glass-block shower and new electrical wiring, among many, many improvements.

"Everything we touched snowballed," says Karen. Insurance picked up half the total tab, but the McSheehys, who bought the house in 1999 for $104,000, ultimately spent $40,000 on their own.

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