Increasing Home Value
Techniques for effectively increasing home value
Increasing home value is the goal
of many home owners, which is probably what landed you on this page. If you are
a home owner or thinking of becoming one, there are many things you can do to
increase home value ranging from spot painting to a permitted add-on.
Please use caution when deciding what projects to undertake as many home
upgrades cost more than the value benefit gained. For example: Adding an in
ground pool may cost you between $20,000-90,000, but the increased value added to the home
could be $20,000-40,000.
Keep in mind that there are two types of home
value increases you may gain from your efforts.
ACTUAL VALUE:
This is the value that an appraiser might assign to
the
home based on recently sold comps and estimated current market value.
PERCEIVED VALUE: While the appraised
value of a property will likely be the
ceiling of what it will draw on the market, intrinsic, or perceived value
will be a factor that may increase the value to the buyer. Example:
The home may appraise at $350,000, but a buyer may only feel the
property is worth $330,000. Your attention to cleaning, staging, etc. may
cause the same buyer to believe that the home is now worth $340,000.
You've gained $10,000 in value even though the appraised value didn't rise.
Below is a list of recommended upgrades which are
known to be an
effective way to increase home value:
Painting (interior & exterior if
necessary)
Upgrading fixtures (lighting, faucets, etc.)
Hardscaping (front & rear)
Kitchen remodel
Bathroom remodel
Increase square footage to the home with a permitted add-on
Landscaping (color is good)
Tile (larger sizes are better)
Crown moulding
Upgraded floor moulding
Replace worn flooring (carpet may be upgraded to wood floors)
Change out of place colors to neutral colors (paint & flooring)
Replace worn roofing materials and missing or misaligned tiles)
Increasing home value is as
simple or complex as you make it. And the rewards you reap for your
efforts are in direct relation to your efforts. Keep in mind this final
point when looking forward: There is a point at which the extra effort and
extra projects don't increase the value of the home more than the time and money spent on
the upgrade itself. Examine your value increasing project before you start and decide if
the benefits of the upgrade merit your commitment to it. Now get out there
and start increasing your home value!
In order not to
cause confusion, mistake
and/or deception among consumers as to source, endorsement or
sponsorship, please be advised that the preceeding
information is a valued op/ed piece
submitted and does not necessarily reflect the views of Homefindinginfo.com.
