Enclosed Patios: How To Over-Improve Your Baton Rouge Home
Today I am sharing a Blog from Bill Cobb who is an appraiser in Baton Rouge LA. Bill shares a very common problem that comes up with over customizing your home and then trying to pull value out of the addition when you sell.
When viewing homes in Southwest Louisiana I come across enclosed additions like the one Bill refers to quite frequently, or an outdoor kitchen, or Mother in Law quarters. I just heard an appraiser say recently they may give 50% value to structures in this category with the key word being "may"....so you will never fully recoup an investment of a patio addition or enclosed garage.
Bill also points out that people tend to move every 7 years on average. With the industrial sector we have here in Southwest Louisiana this is quite common, so resale value is always going to be a factor!
How To Over-Improve Your Greater Baton Rouge Home: Enclosed Patios.
Homeowners need to learn the difference in what is a "Personal Preference" item, which is NOT AN INVESTMENT, and what is an investment in their home that returns value.
Step 1.) Buy a new or nearly new home.
Step 2.) Spend, not "invest", $15,000 to $20,000 on this type of custom super heavy duty, super insulated, glassed in enclosed patio pictured above.
Step 3.) Decide in under 5 years and during a housing price correction to move and/or be transferred with your job or career to another State.....lose all of the money spent on such a patio.
Bill, are you saying this "improvement" didn't add any value? Apparently not! This home was purchased after Hurricane Katrina (when prices were grossly elevated) in mid $300's, owner spent $15,000 to $20,000 for patio installation, is selling 5 years later for more than a $50,000 loss, not including the patio cost, after 200+ days on the market. NO, this is not a distressed sale. Not a foreclosure. Yes, the seller is losing their shirt on this sale.
Life Happens...Jobs Transfer...People Move! It's said that People Move On Average Every 7 Years!
LESSON: If money is no issue to you and you plan on living in your home forever, such an expenditure as this patio might be worth it to you. However, this is stictly a "Personal Preference" items and NOT AN INVESTMENT. Sad thing is that the Patio Salesman will try to make you believe you're actually adding value to your home with such an installation. That's not always the case with buyers!
Another helpful resource is this: Appraisal 101 : Don’t Over-Improve
Article presented by Bill Cobb Appraiser with Home Appraisals Baton Rouge.
ABOUT THE AUTHOR AND CURATOR OF THIS SITE
Since 2007, Greater Baton Rouge's Housing Reporter Has Been Bill Cobb, Appraiser With Over 20 Years Of Home Appraisal Experience, Over 500 Local Housing Articles and 300 Housing Videos!
Baton Rouge Housing Reports Dot Com is an information source provided by local Home Appraiser, Bill Cobb, and Accurate Valuations Group. Bill has 20 years experience as a residential appraiser and updates his local network of sites weekly with reports, videos and audio reviews of local housing market trends! Phone: 225-293-1500.
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