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Cost Versus Value On An Appraisal Report

Professional Appraiser - Minneapolis, MN

Homeowners often think that if the put money into their home, they will recover that investment when they sell the home. Unfortunately, this is rarely the case. For example, let’s say that you finally put that basketball court in your backyard, complete with a concrete base and lighting. It cost you $15,000. Does that mean that the value of your home just increased by $15,000? Probably not, unless you find the perfect match, like an aspiring Stephen Curry. Otherwise the addition of a basketball court does not add much value to your property. This is the difference between cost and value.

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