What Adds to My Home’s Appraised Value?
Posted On: Aug 12, 2016
If you’re preparing to sell your home, there’s probably one question on your mind: how do I get the most value out of my home?
We know some simple fixes can go a long way. However, perhaps you’re thinking more along the lines of “go big or go home.” Before you start making big plans to spend big bucks, consider the following and make sure you’re doing so wisely.
Location is as important as anything.
The condition of your home and the features it offers are certainly important, but the location of your home is just as significant. Remember, your appraisal is based on comparable properties that have recently sold in your area. If you are familiar with recent home sales in your area, don’t be afraid to let your appraiser know. And don’t forget any nearby amenities or features, such as parks, new shopping centers, and the like that may increase the value of homes in the surrounding area.
Remember, this is your neighborhood – he or she may not be as familiar with it as you are.
Kitchen and Bathrooms still reign supreme.
Kitchens and bathrooms still have substantial sway when it comes to the value of your home. A kitchen or bath renovation is usually at the top of any “improvement” list, and rightfully so – they’re usually considered focal points in the home.
Obvious upgrades include adding new appliances, adding custom-fit cabinets, and upgrading countertops to high-quality material like granite, because they instantly approve the aesthetics of the room while making it more functional as well. However, you generally shouldn’t expect to get as much added value as the money you put in.
Some more practical upgrades, such as repainting, replacing laminate countertops, fixing or replacing cabinet doors, or even just adding new faucets can be considered “updates” that add value, as can resealing a bathtub or replacing broken or chipped toilet bowls or seats.
“Green” housing is becoming more and more popular these days. Adding storm doors; replacing insulation, closing off drafts around exterior access points, and installing ceiling fans in each room can add major value.
You can go a step further, and double- or triple-pane your windows, or replace them with energy-efficient models all together. Replacing your home’s thermostats with electronic, wifi-enabled learning thermostats to better regular the temperature in your house is also a huge seller turn-on.
We’ll leave you with one final thought – don’t be afraid to size up your appraiser. It’s to your benefit to find out what credentials he or she has, whether or not the appraiser is licensed, and what organizations he or she is affiliated with. That way if your appraisal does come in lower than anticipated, you will at least know it was a completed by a knowledgeable appraiser and not the result of incompetence.