How can I improve the value of my property?
Outside of a homeowner’s control, the biggest factor is market conditions. Other important issues are:
- Condition of the property
- Specific home improvements
- Neighborhood stability and safety
- The greatest rise in home prices occurs when the economy is strong and the number of home sales is increasing.
Specific home improvements can increase the value above the cost of the improvements.
- Remodeled bathroom returns 81 percent to the owner
- Bathroom addition 89 percent
- Master bedroom suite 82 percent
Well-executed remodeling jobs are a good investment while bad work seldom enhances value or livability.
How can I increase the value of my property?
Specific home improvements can increase your property value above the cost of the improvements themselves, such as remodeling a kitchen, adding a bathroom, finishing a basement or upgrading landscaping. Quality remodeling will increase your chances of a boost in home value; whereas, a bad remodeling job will do little to boost your property value. The bottom line is to measure the cost of any improvements you want to make against the overall values in your neighborhood. If you over improve for the neighborhood, you may not necessarily recover your costs or boost your property value significantly.
Will buying a bigger home increase my profit?
Consider these questions before making a choice between adding on to an existing home or moving up in the market to a bigger house:
- How much money is available, either from cash reserves or through a home improvement loan, to remodel the current house?
- How much additional space is required? Would the foundation support a second floor or does the lot have room to expand on the ground level?
- What do local zoning and building ordinances permit?
- How much equity already exists in the property?
- Are there affordable properties for sale that would satisfy housing needs?
Ultimately, the decision should be based on individual needs, the extent of work involved and what will add the most value.
How do I find out how much my home is worth?
A comparative market analysis and an appraisal are the standard methods for determining a home’s value. I will be able to provide a comparative market analysis which is an informal estimate of value based on comparable sales in the neighborhood. I can provide you with listing prices of homes that are currently on the market as well as those that have just sold. An appraisal, which generally costs $200 to $350 to perform, is a certified appraiser’s opinion of the value of a home at the given time. Appraisers review numerous factors including recent comparable sales, location, square footage and construction quality.
What are the differences between market value and appraised value?
The appraised value of a house is a certified appraiser’s opinion of the worth of a home at a given point in time. Lenders require appraisals as part of the loan application approval.
Market value is what price the house will bring at a given point in time. A comparative market analysis is an informal estimate of market value, based on sales of comparable properties, performed by a real estate agent. Either an appraisal or a comparative market analysis is the most accurate way to determine what your home is worth