adds 4200.00 to the value of the house. How do they come up with that figure.
2006-12-30 14:47:57 · 3 answers · asked by jimbobob 4 in Business & Finance ➔ Renting & Real Estate
They are probably are looking at a similar home that sold which had the improvements they made. But most likely, they're pulling the numbers out of thin air.
Regards
2006-12-30 14:57:44 · answer #1 · answered by Anonymous · 2⤊ 0⤋
it depends how they spent the $2,000. if they improved something like a kitchen or bathroom, or added windows to create more light, $4,200 is really a low increase in value. maybe all they did was strip hardwood floors and redo them as well as painting walls. little improvements can add a lot to a house's sale price. of course, you have to have it in the right location for whatever it is that you do to it. you should never overimprove a property.
EDITED: whenever you make it feel better to walk into the house, meaning that the buyer does not feel that there is any work to do, the increase is higher.
2006-12-30 23:31:35 · answer #2 · answered by Louiegirl_Chicago 5 · 1⤊ 1⤋
It's really just an educated guess based on what the house is worth without improvements versus what they could sell it for with improvements. Seasoned investors are good estimators, because they have seen it over and over.
2006-12-31 13:20:40 · answer #3 · answered by Mary 3 · 0⤊ 0⤋