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Bill Cobb

Enclosed Patios: How To Over-Improve Your Baton Rouge Home

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Real Estate Appraiser with Accurate Valuations Group, LLC LA St Certified 851

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July 19, 2012 10:36 PM

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 ANINVESTMENT, 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 inenclosed 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 orcareer 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 afterHurricane Katrina (when prices were grossly elevated) in mid $300's, owner spent $15,000 to $20,000 for patioinstallation, is selling 5 years later for more than a $50,000 loss, not including the patio cost, after 200+ days on themarket. 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 patiomight be worth it to you. However, this is stictly a "Personal Preference" items and NOT AN INVESTMENT. Sad thingis that the Patio Salesman will try to make you believe you're actually adding value to your home with such aninstallation. 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.

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