[quote=kkun]Bearishgirl- Your argument makes sense. It’s more driven by the buyer perception, information gap, etc. Otherwise from a pure financial sense paid off MR should add value (by an amount equal to NPV of the MR payments stream, in a prefectly rational market)[/quote]
Even in a “rational market,” (however that differs from today’s market), buyers who won’t pay MR won’t shop where it exists. And I don’t think appraisers would or could add value to a property where the bonds were paid off if that is not the “norm” for the area. It could be compared to wasting money on $12K windows in a $300K-ish neighborhood where all other comparable properties have $4K windows. The over-improving owner isn’t likely to recover at least $8K of his window investment upon sale.
