Has anyone ever seen any of the renovation shows? There is one called (I think) 'Flip This House' where different teams of people who own investment companies buy most types of homes, but usually foreclosed homes. They then invest some money for repairs, etc. to bring the value up substantially. I know that this is not what an appraiser does, but have any of you became part of a company that does this?

Have you also noticed that at the end of the show they bring a Realtor in and not an appraiser??

Have you also noticed that at the end of the show they bring a Realtor in and not an appraiser??

I have to smile at this one! - And they also bring in people whom are not sales people NOR Appraisers. I like those shows, but I get aggravated; but then, I get over it and laugh it off. I think this is what makes it fun to watch: the un-economic reality (irony).

Investing means cost and, opportunities cost. Cost vs' market value is something that has to be researched. Repairs should be placed into a reserve-account, at a feasible rate.

Adding this and that, that costs $$$$ may or may not add value; but may or may not reduce value; OR may just leave the house with the same value.

I believe a seller/buyer will need a portfolio or an analysis of the market to know. Also, cycles are involved (timing). Not to mention many other economic issues that must be discussed.

Too much additions or renovation may lead to a form of functional depreciatin and even external depreciation (in some cases); therefore, creating a dysfunctional substitute within the subject's market.

However, flipping goes hand in hand with time. If a certain amount of cost is put into a house, that does not conform to the market, exposure time will exceed the typical market and, may not sell at all OR the price may have to be reduced (a point of no return)!

I suggest, people whom watch these shows, "buyer beware," of what their eye see; and consult an expert (Appraiser, for example) before investing reserves/purchasing interest/money from equity or from another source, into a house for the purpose of adding value.

Sincerely,
Benji

I have done flips in the past and it isn't worth it, atleast right now it isn't. It is a renters market right now.