Over the past several years I have tracked the value of improvements that were proven using Matched Pair Analysis. This is a situation where there are two nearly identically properties one with the improvement and one without. This technique allows the appraiser to isolate (and show proof) of the value of the feature. This is an acceptable method of establishing increasing value in improvements. Keep in mind that the improvements are found in all types of neighborhoods from small condominium projects to good quality neighborhoods.
- Swimming Pool: $9,000 to $20,000
- Bathroom: $5,000 to $25,000
- Half Bathroom $5,000 to 18,000
- Updating: $5,000 to $28,000
- (Permitted) Square Footage Living: $20 to $50
- Additional Car Storage: $4,000 to $10,000
It’s important to note that renovations or improvements should be made as a matter of the owner preference. Situations where the owner will make money from renovations are limited. Unless you are a licensed contractor that is able to complete the renovations at cost you should be very cautious. You need to do your homework or hire an appraiser to estimate the value of your property before and after the improvements. Once you pay a contractor, purchase material, permits and professionals, profiting on resale is unlikely.
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