How to Improve Your Home’s Value

Whether you are selling, buying or planning to refinance a home, the appraisal value is important. Getting the right appraisal can mean the difference between making a sale and not, and it is a key factor to getting a mortgage approved.   Most sales contracts include a provision that if the home does not appraise for the sales price or above, the buyer can renegotiate the sales price or terminate the offer and get their earnest money back.  So even if a buyer is willing to pay your asking price, if the home does not appraise the deal falls through.   Even in cash offers most buyers’ agents will protect their buyer’s best interests and include a provision that the home must appraise or the price will be re-negotiated.  For sellers to think that there may be “crazy money out there” and overprice their property when listing, they are often disappointed when the home doesn’t appraise.  Overpriced homes often sit on the market making other homes that are priced correctly, sell faster.   Don’t make the mistake of helping your neighbor’s home sell, while your sits on the market.

How is the value of a home determined? Simply put, by the value of the land and any improvements made to it. Obviously the home is the main improvement on the land, but don't ignore other improvements like a beautiful garden, trees or a swimming pool or a waterfall.  Appraisers look at the location of a property; the condition of the home; the plumbing; the electrical fixtures; the curb appeal, the local crime rate; the schools the home is zoned to; the surrounding properties; and the selling price of comparable homes in the neighborhood.

Want to improve the value or appraisal of your home?

First, ask yourself why you want to improve the appraisal value of your home. If you want to sell your home, you will need to decide how much the value of your home can rise and if an improvement is worth its cost.  If you want to refinance your home and live in it, you will enjoy any improvements you make, and the rise in value will not be the only consideration. Websites like Remodeling Cost vs. Value offer estimates on the cost of an improvement and compare it with its resale value, so you can work out what improvements give you more bang for your buck.

 The second step is to check the price of other homes in your area. Look at the prices homes similar to yours are selling for. Compare the highest price with the lowest, and this will give you an idea of the potential for improvement the value of your home has. You can check the average and median prices of homes in your area at my website or HAR to get a realistic idea of how much you can improve your home's value.  I’ll be happy to give you this information, just call or email me at bet.jennings@garygreene.com

Here are 6 suggestions to improve your home’s value:

Thought about adding another bedroom to your property?

Projects like this can immediately improve the value of your home. Look at ways you can add another bedroom in a tasteful way that is cost-effective and does not overly reduce the appeal of other rooms. Sometimes a well-placed interior wall and door can make a large bedroom into two regular-sized bedrooms and jump your home into a higher price league.  Enlarging a master bedroom is also appealing.

 Install a deck or patio.  Don’t forget seating and planters. According to Remodeling.hw.net, this job has the highest cost-to-resale-value rate.

 Thinking of remodeling the kitchen? Buyers and appraisers often focus on kitchens and bathrooms. To give your kitchen a major remodeling - fit custom wood cabinets, a kitchen island, double stainless steel sink, new energy-efficient appliances with built-in dishwasher and microwave. However, improvements like these are likely to cost more than the value they add to your property, so consider them only if you are planning to enjoy them. Minor kitchen remodeling such as replacing appliances, repainting, replacing laminate countertops and replacing cabinet doors are usually a worthwhile investment.

Repaint the home in subtle and neutral colors. You might consider beige and cream boring, but it is what sells, and appraisers know that.  Old dated wallpaper? Removing old wallpaper can be tricky and time consuming, sometimes it’s the only way; however,  it  also may be “sized”, textured  then repainted by a proficient painter.  

Replace your current windows with insulated energy-efficient models.  It will help your utility bills and while the interior trim will not change, but it will improve your home's curb appeal and should improve price.

Re-landscaping has an immediate effect on curbside appeal.  Outgrown shrubs date a home’s appearance. Often a severe trimming to a more manageable size will produce a low cost way of freshening a home’s appearance.  Adding colorful seasonal flowers is always a plus.  Note: Never severely prune after September because a sudden cold front could produce freezing temperatures that could kill plants with tender new growth. March to early September are the best times to prune. Pruning trees in the landscape to open up the canopy are another huge improvement.  Many homes are “hidden” by overgrown trees and shrubs.  Landscaping a backyard helps potential buyers to envision themselves living there, especially with a nice patio.

Finally a word of warning, home improvement projects can be addictive.  It’s always important to consider why you’re doing the improvement and to have a budget. To over improve a home for the neighborhood doesn’t always mean you’ll be able to recoup the money spent.