Do Bigger Improvements Get A Better Appraisal?

The short answer is yes. However, the long answer requires some consideration. As we’ve discussed before, the most accurate appraisal figures come from the comps in the vicinity of the subject property.

“Comps” is just a term appraisers use to describe comparable properties in your area. So, comps are homes with the same or similar number of beds, baths, square feet, garages and etc.

For example, if homes in your area are selling for $200k and you want your value to be $225k, your home needs to be better than the homes selling. This means more room, spare bedrooms, or any other big upgrades. If your house has the same footage and number of rooms,  it may not appraise at a higher rate.

The bigger things a homeowner needs to change that would add value could be on the expensive side.

Are the bathrooms and kitchens updated? Renovations on those two rooms can really add value to your home. Do you have more than one bathroom? Can you add a bathroom? If a home only has one bath room and three bedrooms, adding a bath room would make a huge difference. Many buyers looking for a three bedroom will not even consider a home with just one bathroom.

These are investments that would come back as a higher appraisal and a better eventual selling price for your home.

Other major upgrades include hardwood flooring, landscaping, finished basements and more bedrooms. You will have to price out the cost of renovations first, of course.

It may seem like these are big improvements (and they are) but these are the things that get you your money’s worth.

Consider this before you hunker down thousands to update your home: The marketplace establishes value more so than home improvements. If you speak with an appraiser, he or she will be able to explain the local market to you and tell you how much homes are selling for. This will help you determine if the price you hope for is realistic and which repairs will get you there.

Otherwise, you can do a bit of your own research and see if you it is possible to find out how much homes that are nearby are selling for. Remember to check for similar amenities as yours. Try checking the internet or paying a visit to your county clerk.

Categorised in: Blog, Tips For Improving Home Value

This post was written by Joseph Castaneda