If you are looking to make some improvements to your home in order to
increase the value, this article will give you some insight.
I am constantly coming across home owners complaining about an
appraiser not giving value to some upgrades they have recently made.
They are telling me about their state of the art sound system they
installed, their all brick custom wood burning fireplace, or even their
gold towel rack (Yes, this happened, it was $5,000!).
There are many other specific upgrades I come across, way too many to
mention! Prior to making upgrades in the area you need to do some
research to see what is accepted in the market and what is typical.
For instance, a lot of homeowners may think installing that huge
in-ground pool may increase value, but in reality it may not. What if
the typical buyers in the area are elderly couples who do not wish to
have a pool in their back yard, rather a large yard to have a garden.
Another example I have come across was a client that installed an
all-brick custom driveway that included large pillars imported from
Europe. The cost to build this driveway was over $15,000, however, due
to this upgrade being an over improvement for the area, no value was
given to it because it was NOT typical for the market. In this
particular area, the typical buyers were 25-35 year old newlywed couples
and they did not care about a custom driveway. They just wanted a drive
way to pull their cars into.
From my 10+ years of appraisal experience and being a broker selling homes, I can tell you my
TOP 3 items to upgrade that are likely to increase values:
- KITCHEN – Everyone has to eat, therefore this is the
number one place buyers look. Installing granite countertops, upgrading
cabinets, and adding new appliances will give the kitchen a great new
look and add value to your home. Your goal is to give that “Wow” factor
to other buyers. You can easily do this by searching for deals. You do
not have to buy the top of the line appliances and cabinets. Be
Creative!
- BATHROOM – Bathrooms are the second place that potential
buyers will look, therefore it is very important to have that updated
bathroom and not an outdated one. By simply upgrading flooring and
painting the walls, you can easily give your bathroom an entire
makeover.
- ADDING SQUARE FOOTAGE – As long as the size of your home is
not the largest in the area, more times than not, adding square footage
to your home will help your value. Square footage is one of the largest
factors in valuing homes. However, before you add that extra square
footage consult with a professional to determine if it will add
value.
This article is just a guide and every market is different. Do not
assume your home fits this criteria. If you want a more accurate
response as to whether that upgrade will gain you value in your home.
CALL ME. TEXT ME. EMAIL ME.
