Comments on: Explaining the Benchmark http://agentwill.com/statistics/explaining-the-benchmark/ Documenting Life and Real Estate in Vancouver Tue, 23 Aug 2011 20:23:45 +0000 hourly 1 http://wordpress.org/?v=3.1.2 By: Will http://agentwill.com/statistics/explaining-the-benchmark/comment-page-1/#comment-998 Will Wed, 03 Dec 2008 00:35:12 +0000 http://agentwill.com/statistics/explaining-the-benchmark/#comment-998 No, there's simply no way to account for upgrades. How could they? More importantly what be would the value of doing so? I'd say that the point of measuring the HPI Benchmark is simply to overcome the wild swings that are caused significantly different properties on the average. No, the value in this, just as the value in the various stock market indexes, be it Dow, S&P, or TSX 100, is simply to show an overall trend. Averages can show up or down X%. HPI can do the same with different numbers. Only an appraisal can point to what your specific property will sell for up or down from before and then only the market and the Seller can determine what its value actually is at that point in time, upgrades or not. As an aside, I'd say that upgrades right now will not add any value to your home... they will merely improve its salability (and that is a very good thing). In a stable or rising market, they do increase the value. Not in a falling market. No, there’s simply no way to account for upgrades. How could they? More importantly what be would the value of doing so? I’d say that the point of measuring the HPI Benchmark is simply to overcome the wild swings that are caused significantly different properties on the average.

No, the value in this, just as the value in the various stock market indexes, be it Dow, S&P, or TSX 100, is simply to show an overall trend. Averages can show up or down X%. HPI can do the same with different numbers. Only an appraisal can point to what your specific property will sell for up or down from before and then only the market and the Seller can determine what its value actually is at that point in time, upgrades or not.

As an aside, I’d say that upgrades right now will not add any value to your home… they will merely improve its salability (and that is a very good thing). In a stable or rising market, they do increase the value. Not in a falling market.

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