Always check neighborhood home values

     By Robert J. Bruss
     Tribune Media Services
      DEAR BOB: My husband, a custom-home builder, grew up in a lovely old neighborhood of houses now selling for about $250,000. He learned about a house in that area that had a serious fire. The owner is willing to sell it for $150,000. Although the house could be repaired for around $75,000, my husband wants to buy the damaged house, tear it down, and build a brand new house where we would live. Our house will cost, even at wholesale, at least $150,000 to build. I'm saying this will not be a good investment. What do you think? -- Georgia S.
      DEAR GEORGIA: Your husband is thinking with his heart, not his head. If he buys that damaged house for $150,000, tears it down and spends $150,000 building a new one, his $300,000 investment will be well above neighborhood home values.
      Buying or building the best house in the neighborhood is not smart. Apparently your husband wants to move back to the area where he grew up so badly he's willing to make an unprofitable investment to do so. Sorry, I don't see the wisdom of such a move unless the area is appreciating in home sale prices.
      -- Send your questions to Robert J. Bruss, Tribune Media Services, 435 N. Michigan Ave., Suite 1400, Chicago, Ill. 60611.