When considering property values and what affects them, you have to wonder if it makes any difference on how shiny your palace is when it comes to ROI. After all, the concept of ‘value’ makes sense with everything else:
Admit it: the better the quality, the better the value, as many H.O.P.E. to Own reviews would say. So the idea that real estate, as linear and understandable as it may be, actually increases in value when the ‘quality’ decreases can very well turn the world on its head and cause Armageddon! It’s true, though. This is the logic behind it.
Why Your Less Attractive Home Can Improve Your ROI
There’s a real misconception regarding return on investment, especially with regard to home improvement. ROI hardly has anything to do with how pricey something is. ROI is all about the return. Getting a return on selling a block of wood for $5 when you paid $3 is no different than selling a house for $500K when you paid $497K. Your ROI is still only three bucks. It’s all relative.
That’s why true property value with respect to ROI relies on the land in which the structures sit on. Therefore if your home is quite expensive due to updates, square footage and other such luxuries, you can expect the property to appreciate less than a little rent-to-own home that might be a bit lackluster.
It’s that lack of appreciation that’ll drop your ROI some. In the end, when you do the math, an “ugly duckling” might actually net you more ROI, believe it or not. In fact, might is probably not the effective word. “Most likely” is more likely it.
Don’t Let Your House Go, Though
Maintenance is key, though. If there are termites, take care of it. If the roof’s about to crumble, remedy it. But don’t be too worried about the aesthetics. You might get a lot of interested buyers in the long run, but when it comes to your bottom line, what you’ve invested in the property might be way much more than what you get back when it’s all said and done. Learn more about rent-to-own homes here and home improvement here.
Be prepared to have the proverbial rug pulled from under you. We’re shaking things up with standard stigma and paradigm, changing things up on a dime and proving that trends are something more than colorful kitchens and outdoor living spaces. So here’s the deal:
Property value is done wrong. All wrong. There. I said it. You can take that to the bank when successfully selling your home via social media.
What Really Matters When It Comes to Property Value
A lot of what we know (or think we know) regarding property value may be true to some extent, but believe me when I say that there’s so much more than just the numbers, comparables, and assessments we’re so used to seeing. Sure, they have their place — but if you really want the most accurate figures for your home, you need to pay attention to the actual “land,” the real estate, versus the structures themselves. That’s such a big misconception. Your property isn’t a building. It’s the land the building sits on.
Furthermore, would you be shocked if you found out that a “less attractive” home might actually bring in more in terms of investment? Such an “ugly duckling” would — and for good reason — due to real estate appreciation. The more money poured into a home, the less profit from appreciation on the real estate.
It’s a good point to find the cul-de-sacs in a neighborhood, too, because those properties will excel in value. Why? Think of safety, privacy — culture, quality, and peace of mind, tucked away in a corner. It makes sense that property value increases when owners don’t hear planes, trains and automobiles all over the place.
Here’s a big secret right here: the age of the neighbors. Seriously! Find out how old they are, and you have a factor often untouched by many gurus in determining your ultimate property value for your rent-to-own real estate. Additionally, and this is a make-or-break factor: future property developments. Will they benefit your property value or not? It’s an important question to ask, because it can go either way.
Take Notes and Make the Grade
This is important stuff. Focusing on home improvements will certainly pull you in the right direction, but don’t forget this one important fact: this is the real estate industry. It’s a fickle giant in a fairy tale world — and all it takes is one wrong move, and Jack on the beanstalk will knock him down good.