There are upper class sectors where indeterminate increases do apply, always conditioned on the physical condition and age of the property, but there are some for which there are no investment limits.
SANTO DOMINGO.- It is common to hear homeowners setting their price for their property after having undergone certain renovations, some even planned with the purpose of increasing its value, before putting it on the market.
However, a home's value doesn't always depend on the renovations it has undergone. Research before making any extravagant investments, because even if you completely transform your home, market forces will limit the increase, preventing it from rising as much as you'd like. Every market niche has its limits.
“Generally, when houses are remodeled, their value increases, but there are areas where there are limitations because the real estate market has a ceiling, and sometimes you go overboard and exceed the investment that the sector can withstand, so your product doesn't fit, you won't recover the expenses you made,” states Nelson García, an experienced appraiser.
There are upper-class sectors where indeterminate increases do apply, always conditioned on the physical condition and age of the property, but there are some for which there are no investment limits and you can recover what you spent.
He explains that in other areas "if you go over the limit you will make a bad investment by doing work far above the limit, then the real estate market will not recognize it in the future.".
There is no set number for the percentage increase that corresponds to an improved home. "We would have to determine it based on the home and its degree of obsolescence, its age, whether it has defects, and if those are construction flaws and they are corrected, that has an impact.".
However, says the representative of Tasesores, if it is a simple remodeling to modernize the percentage is lower.
