| When any banker assesses most real estate, they | | | | is almost always, not the taste of the other and |
| ask one question. What is the market value and what | | | | bankers know this and they do not put much |
| is the comp (comparable value to a local property in | | | | emphasis on cosmetic appeal as buyers do when |
| close proximity recently sold with the same additions | | | | they are shopping for their home to buy or to rent. |
| such as the number of bedrooms or the garages or | | | | There are some very decapitated properties out |
| the square footage) value. | | | | there that need serious repairs and upkeep. The |
| Before setting off to your local home depot and | | | | repairs can run into thousands of dollars while the |
| buying the latest picket fence or concrete walk way | | | | over all resale value will only be compared to the |
| you must ask you valuator if this additions will add | | | | house down the street which has the same features. |
| any value to your property. Many real estate | | | | If it sold close to the comp value than the increase in |
| investors have been caught by the emotions | | | | value will be very small and it will actually be worth |
| generated from the closing of escrow on their | | | | your while adding a fourth bedroom or bathroom, |
| property and they eagerly fly out the door to start | | | | changing the type of roof or adding a third garage. |
| building up their investment to their ideal vision. | | | | Let us recap, a 4 bedroom house will always be |
| The most cheapest home improvement advice that I | | | | compared to another 4 bedroom house recently sold |
| have found out the hard way was when I asked a | | | | in close vicinity. Knowing this can be a tremendous |
| bank evaluator to re-evaluate my purchase after I | | | | asset to the real estate investor who is preparing to |
| added security gates, paved the entire back yard, | | | | buy their investment property and would like to keep |
| fitted curtain railings and added an electric garage | | | | the home improvement costs to a minimal while |
| motor. He said the value is still the same as when the | | | | maximizing the upside of the capital gains. |
| contractor handed me the keys. | | | | Another thing not to forget is to invite a contractor |
| It is not pleasant to receive such expensive and | | | | to give a quote of the cost of the additions before |
| depressing news but instead of throwing in the towel | | | | signing the mortgage papers or deposit check. A |
| it is imperative to preempt such an occurrence and | | | | reasonable seller can give credit for the home |
| ask the valuator before making the improvements. | | | | improvement costs, reducing your purchase price |
| Home improvement is a super rich industry that | | | | below the comp value. |
| makes its living from people who would like to | | | | Please remember that; "Buying real estate well is |
| improve their home and make it more customized to | | | | where truly you make your money. |
| their individual tastes. Unfortunately the taste of one | | | | |