Monthly Archives: August 2016

Five Renovations That Don’t Increase Home Appraisal Value

Every homeowner must do routine maintenance to their home that more or less just maintains its current condition. However, some homeowners decide they want to improve their home’s value and marketability. The amount of value certain improvements cost may not add as much value as the cost to do it.

Homeowner’s are very biased when it comes to their own home, they see the things they have done to it and think dollar for dollar the home’s value should go up with each improvement, this is not often the case. A potential buyer or real estate appraiser may be unimpressed with certain improvements, what you must keep in mind is that what you view as a valuable upgrade may not be the same as what the real estate market sees as a valuable upgrade.

Below I am going to outline Five Renovations That Don’t Increase Home Appraisal Value.

1. Swimming Pools

There aren’t many areas of the world where backyard pools are common place. Before adding a pool think about your neighbourhood, do the majority of properties have pools? Would a potential buyer expect there to be a pool? If pools are not common place in your area and/or have a very short season you likely will not be adding much value to your home, definitely not as much as the cost to put one in. In fact, Many potential home buyers view swimming pools as dangerous, expensive to maintain and insurance claims waiting to happen. Potential buyers with small children could really be turned off by there being a swimming pool. In-ground pools come at a very steep price, my opinion is if buyers in your area would not expect a pool then this money is better spent elsewhere as you are not likely recoup the cost in a sale or appraisal.

2. Elaborate Landscaping

Home buyers and appraisers definitely appreciate good landscaping, but there is a line where elaborate landscaping no longer adds its equivalent in value to what it costs. Keep in mind that the next person buying your home may not want to take on the upkeep work of elaborate landscaping and may not want to have to hire a professional landscaper to take care of it. An appraiser will also only assess so much value to landscaping in their report as not a lot of emphasis is put on landscaping by the market, how often have you heard of someone buying a home because it had great landscaping? sure it is a plus but you are better off to just meet the standard in your area than to get too carried away.

3. Overbuilding for the Neighborhood

It is better to have the other homes in your neighbourhood “pull-up” your home’s value than to have them drag it down. Your neighbourhood plays a large factor in your home’s value, you do not want a large, elaborate, two storey home surrounded by older bungalows. The people that will be looking for that type of home will go to a neighbourhood where it will be surrounded by similar properties. Likewise, it will be very difficult for an appraiser to find similar comparables in your area and this could lead to a lower value being assessed.

4. High-End Upgrades

Most people are on a strict budget when it comes to home improvements, so what they will do is they will pick a room and do a complete remodel adding higher end flooring and fully modernize the room. This is good and I understand the strategy, next time you have some extra funds, pick another room and the same and after 5 years or so your home will be fully updated. But does that full remodel of that first or even second room really add as much value to your home as it costs? My opinion is now, if you full remodel one room and then plan on selling or getting an appraisal the appraiser is going to see the other 80 or 90% of the home is still dated and would be considered a project. An alternative strategy might be to take all of those funds that you were planning on sinking into an elaborate bathroom and spread them over the whole home, the cost of a full bathroom remodel could redo the flooring and paint throughout the entire home and this would be look upon much more favorably by a potential buyer or appraiser in their assessment of value than you just having one high quality room.

5. Invisible Improvements

New plumbing, electrical or HVAC might be necessary, but don’t expect to be adding dollar for dollar value for their cost. Home buyers and appraisers simply expect these systems to be up to date and in good working order. These items would be considered more home maintenance than home improvements.

The Bottom Line

When spending money on your home assess why you are doing it, if it is purely for your own comfort and enjoyment with no real intent in adding value then go ahead and add that pool. But if you are consciously trying to add value to your home then where to spend your renovation budget requires much more thought. Consider speaking with a realtor or appraiser and ask them where they feel your funds are best spent to improve value.

Article Source: http://EzineArticles.com/expert/Bryce_Witherspoon/2114219

4 Things That Will Help Fetch the Right Resale Value for Your Property

So, you have decided to part with your home. Wondering how to get the best deal that will justify holding it is an investment property until now. Before you put up a notice for sale, or start passing the news to your near and dear, consider the fact that the reality market is some parts of the country has been sluggish.

Hence, it is worthwhile to put in a little bit of effort that will make your property look a lot more attractive to potential buyers. Here are some expert tips that will help enhance the resale value of your home by tens of thousands if not few lakhs.

Pep up the exteriors

As soon as a home is bought, homeowners spend time, money and energy in designing the interiors to their whims and fancy. What they miss to see is that, the exteriors play a major role in creating an impression in the minds of a potential buyer than the interior. It is the exterior that is first seen before they take a walkthrough of the interiors. Hence, pay attention to pepping up your exteriors in equal measure to the interiors to get a better resale value.

Creating additional space

An extra room is fine, but what if it serves no purpose? Moreover, what if that extra room does not fit into the ergonomic layout of the home properly? Instead, think of ways to increase the space inside the home. There are plenty of architect firms with interior designers and vasthu consultants who help altering the physical dimensions of any home to make it appear spacious and airy. A spacious home will fetch a higher resale price than one which boasts about a tiny and ill-fitting extra room.

Setting right minor repairs

Like drops of water that collect together to form a messy puddle, a number of unattended minor repairs can wash away a significant portion of your property’s resale value. A prospective buyer will be more interested in knowing the present physical condition and the expected longevity of the house before making a final decision.

The scene of leaking walls, falling patches and plumbing problems can definitely take a hit on the property’s sale worthiness. Hence, make sure all minor repairs are attended to on a regular basis.

Keep a cushion for price negotiation

Indians are ruthless negotiators. We love to bargain for the best deal in every transaction. Especially when it is about buying a new home expect the negotiation process to be fiercer than what you can imagine. Hence, make sure you price your property with some cushion for reduction during the negotiation process.

You might want to take into consideration the existing market rate of similar properties and how the deals have ended before fixing the price or agreeing to the price offered by the buyer.

The resale value for a property is highly dependent on various factors. Location, floor space, number of rooms and furnishings all play a major role in determining the resale price. However, other factors like well-maintained exteriors, perfectly functioning plumbing and sanitation, additional space for storage, etc. can help further increase the resale value to a higher denomination.

Article Source: http://EzineArticles.com/expert/Sulabha_Kulkarni/1855236