hen shopping for a home, overspend on improvements and
many buyers view then realize the comparable homes
improvements to in the neighborhood will not
properties as positive sign. In support a price that recoups the
general, this is logical but a cost of improvements.
buyer must be careful.
For instance, the seller may put
A time-tested approach to making $100,000 into new bathrooms and
money in real estate is to buy a kitchen accessories only to
home, make improvements to it and realize the appreciation from
then reap the appreciation gain such improvements is $50,000. In
when you resell the home. While an effort to resolve this issue,
this approach has certainly the seller will list with a high
worked for many, it can lead to price and is usually not
disastrous results for seller and particularly motivated to lower
unwary buyers. that price in negotiations until
the property has sat on the
When a person purchases a home, market for some time.
they buy it for both the current
appearance and their vision of As a buyer, you have to be very
how they can improve it. The careful when considering the
improvement vision tends to be an purchase of such homes. These
emotional decision, one that can homes will almost always be
lead to financial problems. While priced at the top of the market.
improvements area a good idea, While they may look nicer than
most people do not take the time any other home in the area, you
to evaluate how much they can must ask yourself whether there
spend on improvements and still is room for the home to
make a profit on the resale of appreciate over time. Often there
the property. Instead, they is not, which means you just end
up buying the seller’s problem. numbers. Buying at the high end
of the market is rarely a good
While buying a home is an idea.
emotional decision, you must be
able to objectively crunch the
About the Author:
Raynor James is with http://www.fsboamerica.org - FSBO homes for sale by owner.
Read more articles by:
Raynor James
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