Rizzotti JH Real Estate Blog

Cost Vs. Value
June 24th, 2008 8:12 AM

Remember, cost does not always equal value. Cost of improvements, renovation or addition may be higher or lower than value. Look at comps with similar attributes to determine what the market is paying for cetain amenities. A good example of an amenity in the Jackson area that will probably not recapture its full cost is a swimming pool. This is due to the limited seasonal use and the fact that the participants in the market do not demand this amenity. Certaintly, it is possible that a indoor swimming pool in a high end luxury home may be one of numerous amenities, where the value is difficult to isolate. But this amenity may provide lots of enjoyment and the owner could care less about the cost.

If you really want an upgrade or amenity and dont care about re-sale, do it. But if your looking at a return on your investment, look to the market and call other agents to find out if your upgrade is demanded in the market place. The granite counter tops, stainless steel appliances and kitchen updates may be critical in renovating an older condo in an area where these.




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Posted by KENNETH RIZZOTTI on June 24th, 2008 8:12 AMPost a Comment

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