slb@drutx.UUCP (Sue Brezden) (09/27/85)
>> improvements make for a high appreciation rate, and others >> actually detract from the value of a house, such >> as, for instance, an inground swimming pool) >> >Why is this the case? It seems counter-intuitive to me. I don't know for sure, but it seems like the upkeep on a pool would be a detriment. There are chemicals, filter pump and heating costs, and the effort of cleaning it and getting it covered and uncovered. In this area, the cost of water can be non-trivial (depending on which suburb you live in). Also, I believe that your liability insurance rates can be higher. There is always the chance that some neighborhood kid will get in there and drown (there were several cases like that in Denver last year). In addition, there are a lot of people who are just not interested in swimming. They would not want to buy the house (it's not easy to rip out a pool) and this makes your market smaller. What other "improvements" can detract from property values, and which improvements are good ones to make? Does anyone out there have any information on some? -- Sue Brezden Real World: Room 1B17 Net World: ihnp4!drutx!slb AT&T Information Systems 11900 North Pecos Westminster, Co. 80234 (303)538-3829 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Your god may be dead, but mine aren't. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
wmartin@brl-tgr.ARPA (Will Martin ) (10/03/85)
In article <37@drutx.UUCP> slb@drutx.UUCP (Sue Brezden) writes: > >What other "improvements" can detract from property values, and >which improvements are good ones to make? Does anyone out there >have any information on some? > Sue Brezden The subject is often mentioned in home-improvement how-to books and suchlike handy-person's guides. As I recall, the main factor is the general desirability of the feature -- if a lot of people want it, it adds to the value; if only a few people want it, and especially if its presence also decreases options or eats up space that could otherwise be used, it reduces the market (as was mentioned on swimming pools), and so either reduces the value, or simply means you would have to keep the property on the market until one of the limited number of buyers that want that feature, and is willing to pay for it, shows up. The most desirable improvement, I believe, is kitchen modernization. I actually wonder about that, since everybody wants something different from a kitchen, and has their own desires and dreams of an "ideal kitchen". I think you can make this be a detraction if you go to an extreme, like a gourmet or cookbook writer installing professional stoves, chinese-restaurant wok burners, huge professional refrigerators, etc. If you keep in the "mainstream", though, it pays back something over your investment (like 150% of the improvement cost added to your home value). The "detractions" are figured as losses by comparing the investment cost to the home-value increase, so they come up with figures like 75% paid back, etc. If it increases storage space, improves the appearance, or makes the home more comfortable, it probably is an asset. If it adds to the maintenance cost, is aimed at a limited-interest group (like installing an observatory dome on your roof), or makes the home different or unusual when compared with the neighborhood norm, it probably will be a debit. Of course, if you plan on living the rest of your life somewhere, fix it up the way you want. Who cares what problems your heirs might have. It's your life, and you should live it the way you like best! Pay attention to this sort of concern if you move a lot, or want to keep mobile for job reasons. Will
hollombe@ttidcc.UUCP (The Polymath) (10/03/85)
In article <37@drutx.UUCP> slb@drutx.UUCP (Sue Brezden) writes: > >What other "improvements" can detract from property values, and >which improvements are good ones to make? Does anyone out there >have any information on some? The Wall Street Journal had an article on the subject a month or so ago. As I recall, their comments were something like: Skylights -- once popular, now add nothing to value and may detract Solar heating -- unlikely to add full value in northern states Kitchen remodelling -- expensive and unlikely to add more than 50% of cost There were one or two worthwhile additions I can't remember now and the above is from foggy memory. You also have to take into account the neighborhood and value of surrounding houses. Adding $100,000 worth of work to a house in a neighborhood of $90,000 houses is almost certain to be a losing proposition. -_-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_ The Polymath (aka: Jerry Hollombe) Citicorp(+)TTI Common Sense is what tells you that a ten 3100 Ocean Park Blvd. pound weight falls ten times as fast as a Santa Monica, CA 90405 one pound weight. (213) 450-9111, ext. 2483 {philabs,randvax,trwrb,vortex}!ttidca!ttidcc!hollombe