Increase Your Home’s Appraisal Value
Posted On: Jun 26, 2017
Homeowners have the power to boost their home’s appraisal value by taking a few easy measures. A home appraisal determines the worth of a home, and is crucial when establishing a list price or preparing to refinance. Some homeowners make the mistake of spending more on fixes and renovations than their corresponding return value. To ensure the highest appraisal value without losing money in the long-run, a homeowner should consider the following:
Do your own research.
A property’s appraisal value is influenced by the area’s recent sales information of similar homes, along with current market trends. The home’s features, square footage, and interior layout play vital roles when determining a home’s value. It is in your best interest as a homeowner to research comparable properties to assess what amenities or modifications can increase your property’s appraisal value. Although the appraiser makes the final judgement, this will give you a general range, and the opportunity to make changes before the appraisal is completed.
Record home improvements.
Make your appraiser aware of any home improvements you’ve made throughout your ownership of the home. In other words, document how you’ve increased the value of your home. When making any significant improvements, take before-and-after photos or, at a minimum, keep receipts; both will strengthen your case. Note that improvements to aboveground spaces have a greater impact on your home’s value than any basement renovations.
Update your kitchen and bathroom.
Even small improvements to your kitchen and bathroom can earn you a good return on investment. Simply changing the wallpaper, replacing old lighting fixtures, or refinishing laminate countertops are low-cost upgrades which could bring high value.
Don’t forget curb appeal.
First impressions really do count, even with home appraisals. An attractive front entranceway can add tremendous value. Easy ways to create a picture-ready home are flower pots, a freshly painted front door, or a newly sealed driveway. Pay attention to anything that could potentially detract from your home’s appearance, such as untrimmed trees, weeds in the garden, or grass creeping over your paver stones. Take a moment to touch those up, especially if you’re preparing to sell your home. It’s good to note, however, that these details aren’t likely to have as much impact on appraisals necessary for refinancing.
Go ahead and educate the appraiser about the home improvements you’ve made; share the data you’ve collected about comparable homes. But don’t hover.
Give the appraiser space to do his or her own review. The time a home appraisal takes varies depending on the home, but you will have plenty of time before and after to put in your two cents without being pushy. Remain available for questions without following the appraiser room to room.
As a homeowner, you have many opportunities to increase the appraised value of your home with wisely selected interior and exterior improvements. Don’t forget to do your research as well; comparable homes can have a significant impact on your home’s overall market value. A home is only worth what someone will spend; if a buyer can find a similar home in your area for less than your list price, your home will very likely linger on the market.