GET A HIGH APPRAISAL for a Minimal Investment
By Heath Alexander
Residential Valuation Services, Inc.
When people find out that I’m a real estate appraiser I often get asked, “What can I do to improve the value of my house?” My response to that common query is always the same: “it depends.” But, you can apply some basic principles that can help you determine the best return on your renovation investment.
Improving the value of your home depends on a variety of factors including, the individual neighborhood, the price of the house, general market preferences, your own personal market knowledge, and some good old-fashioned luck. All of those factors affect each property differently, so it’s impossible to come up with a bullet-proof plan for renovating your home, but some general will increase your chances of a great return.
The first step before doing any renovations should be to go out and look at houses in your neighborhood. By simply knowing the market and what amenities are most common and desirable can help you decide what needs to be improved in your own home. You want your home to compare well with other houses, but be careful not to over do the renovation. Remember, the broadest popular appeal to the entire real estate market is the key, so avoid anything too specialized or eccentric. You might love a basketball court in the basement, but very few people are willing to pay more for that enhancement.
Minor kitchen upgrades are a very popular, and relatively safe way to increase the value and desirability of your home. Upgrading appliances, adding a solid surface countertop, or new flooring and recessed lighting are common kitchen upgrades that help increase the value of a home.
Another safe place to renovate is the bathroom. Updating the tile flooring, replacing or repairing the tub and installing new fixtures tend to improve older bathrooms significantly. If you have the room, and the extra budget, then make older master bathrooms larger. Additional bathroom square footage is another way to increase the appeal of your home.
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Kitchen Renovations with updated appliances, countertops and lighting can net a good return on investment!
Some things that are generally not very cost-effective in increasing the value of your home are swimming pools, home office spaces, and landscaping. Those upgrades are nice, and if you love to swim, then by all means get a pool for your enjoyment. But don’t expect the money that you spend on the pool to be recouped once you decide to sell.
These are all just general guidelines, but you can’t really go wrong if you really know the market in your neighborhood. It’s worth the time to walk through houses for sale in your neighborhood, especially those similar in price and style to your own home. You will get a decent feel for what the market competition will be when you decide to list your home. Your house should be in line with other similar houses. Too much renovation and you won’t get your money back. Too little renovation and buyers will either lower their offer or simply buy the house down the street that has the updated kitchen. Knowledge is power, so know your market and you’ll be fine.
Heath Alexander is an appraiser with Residential Valuation Services, Inc. For questions regarding home renovations, contact him at health@resvalue.com or (770) 270-6464. |
