What Contributes To Home Value?

As a real estate appraiser, I often get asked what sort of things can add to one’s home value. Considering, most American’s number one financial asset is their house, this isn’t a surpring inquiry. Value typically comes down to; total square footage, overall condition and LOCATION. If you’re trying to pump up your home value via renovations; start in the kitchen. After remodeling the kitchen, work your renovations into the bathrooms, and so forth. I can’t tell you how many times, I’ve gone into an appraisal inspection and the homeowners ‘go on and on and on’ about tree’s they’ve planted; shelves they’ve hung, and views that can be seen if you stand on your tippy toes. An appraiser’s job is to determine how much dollar or percentage value, if any, a certain element contributes to value. For example, not every market participant wants an inground pool — child drowning and pool maintenance are two main reasons for such undesirability. A pool can add $0 value or $100,000 value, it really just depends on the market area. Thinking about going Solar? In order for an appraiser to give your home’s solar power any value, they must be owned and fully paid off. And after those criteria have been met, paid for solar still may not incure much value difference. Same logic as the pool example, not every market participant wants solar. Roof panels can be seen as an eye sore. When it comes time to replace a roof, it’s more difficult and costly due to navigating around the solar panels. PATIENCE. Patience and knowing when to hold, buy and sell are other tools towards making the best valuation move. Real estate should always be seen as a long-term investment, try staying for at least 5 years. However, this rule doesn’t apply to renovation / flipping investments. September 3, 2023