It Is OK To Improve Your Home Beyond The Value Range Of Your Neighborhood, But Realize That You Are Doing So, And The Potential Consequences
Scott P. Rogers
I've written about improving your home a few times this week...
Thanks, to Frank, for spurring on many of these thoughts and topics.
On to one more important concept to note...
It is possible to over improve your home within the context of your neighborhood.
A stark example...
- homes in the neighborhood usually sell for $300K to $350K
- you spend $125K on your $325K home and hope it will be worth $425K
As you can imagine, it might be hard to sell a $425K home amidst other homes that are selling for $300K to $350K.
So, yes, it is quite possible to over improve your home compared to your neighborhood.
It is OK to do so -- but you should just realize, going into the renovation project, that you are doing so -- and understand that it will likely mean you will see an even lower percentage of the cost of improvements contributing towards the post-improvement value of your home.
Perhaps, though, I have oversimplified all of this. If you considering making some renovations to your home -- feel free to loop me into your thought process and I'm happy to provide you with some candid feedback to help you think things through.
