Myth: Money in equals money out. That is to say, paying $20,000 to install new windows in your
building will increase the value of your building by $20,000. This myth can lead to property owners
willingly spending money to improve a property in a market that does not value that improvement.
Imagine replacing a freight elevator for $90,000 only to find out that a $2,000 repair could have served
the same purpose.

Fact: The “cost” of something does not always equal its “value.” Consider this: you spend $20,000 to
install new windows in your building. There is another, equally-qualified contractor who could have
completed the job for $16,000. How much “value” was added to your building when you selected the
contractor who charged $20,000? The value contributed by a property feature (i.e. new windows)
comes from the beliefs and perceptions of buyers and sellers, not from its cost. A given feature is
unlikely to contribute more than its cost to the value of a property as a whole.