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.
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.