patrick.net

I still do not understand how the value of a house can go up by 75K after you do an upgrade with new appliances that cost 15K. You redo the bathroom with 10K in hardware and 5K in labor but the value of the house is now 75K more. Thats ridiculous. The value of the house just went up 15K. Can someone explain this logic to me. : )

slightly dead thread, but when the housing market was booming, it was hard to disentangle the value added by renos from the boom effect, so people started saying it was the renos that did it. there is possibly a slight psychological effect to selling a nice renovated house to someone over an unrenovated one, particularly when people aren't handy or don't know the cost of a reno, or can't be bothered attempting it themselves. now that the market is turning in Oz, the bureau of stats is finding that much less is being spent on renos, because speculators doing a 'quick fix' for resale aren't sure they are going to get their money back as the market cools...