Home Improvements That Increase Your Appraised Value
If you are looking to sell your home, keep in mind that you may need to invest in some home improvements in order to sell your home and become competitive in the market. If you are looking to stay in your home for a while to build equity, home improvements can benefit you as well by gaining more value in your home.
When considering home improvements there are three things to keep in mind:
- How your project impacts your home’s appraised value?
- How long you plan to be in the home?
- How strong the resale market is in your area?
If you are looking to sell your home, then you really want to focus on what the appraised value will be after completing improvements. Banks and real estate transactions all use appraisals.
Now, what exactly is a real estate appraisal? A real estate appraisal is basically when a professional gives his or her opinion of your homes market value. The appraiser will look at things such as the condition of the home, the neighborhood, number of bedrooms, location etc. However, there are more things the appraiser will look for to determine the value of your home.
When you are getting your home appraised, you are basically “selling” it to the appraiser. You need to make sure your home is clean, painted, trimmed etc. Do whatever will make your home more appealing to ensure you receive the highest appraised value.
What home improvements can you make to increase your appraised value?
Increase livable area
The home improvements that are more likely to increase your appraised value are things that increase the livable area. These things would include the number of bedrooms and bathrooms within your home. However, don’t go crazy adding a bunch of bedrooms because you want to stay comparable to the homes in your neighborhood.
Boost your curb appeal
Your curb appeal is how your home looks from the outside. Things that will increase the exterior look of your home would be a new front don’t, garage door and siding. The reason upgrading your curb appeal is important is because that’s how you will first attract a new buyer. They basically judge your home by its cover.
According to the Remodeling magazine 2010-2011 Cost vs. Value Report, these are the projects with the highest returns:
- Front door – 102.1 percent
- Garage door – 83.9 percent
- Fiber-cement siding – 80 percent
- Wood deck – 72.8 percent
- Minor kitchen remodel – 72.8 percent
- Wood windows – 72.4 percent
- Remodel attic into a bedroom – 72.2 percent
- Finishing the basement – 70 percent
- Completely new kitchen – 68.7 percent
- Two-story addition- 65 percent