Awareness Always Raises Appraisal Value –that’s our motto and one of the things we always bring to the valuation table, as well as this slightly promotional, always educational and informational blog.
This time around (please read all of Pahroo’s blogs) we’re looking at things you’d expect would raise the appraisal value of your sweet hacienda, but in the end, they don’t according to informed sources (our appraisal selves included)*
Keeping a wise eye on renovations is always a smart move, especially if you’re thinking of selling and moving your home, but knowing good improvements from bad ones in terms of good ROI versus even a reversal of fortune, is critical. Here are some things to avoid—if you want to attract home buyers and potentially save yourself a fortune in repairs that don’t pay off!
1. Some Upgrades are Surprising Downers: So you might think a new plumbing system, or nailing a new roof, or installing a hot new air conditioning unit would pay off, but the truth is homebuyers won’t pay more for your home for these improvements. They expect these things to be operational and in good working order from the get go.
2. Converting a Bedroom to Office Doesn’t Compute: According to lifestyle authorities (like Time-Life), redoing your empty-nest bedroom could lay a big fat real estate egg. House hunters, especially those young whippersnappers, envision a room for little Emily or Bobby not a place where they can have conference meetings and TCB (the parents, not Emily or Bobby). In fact, your house will be listed as having one less bedroom—which can really lower appraisal value. Sound the Pahroo alert on the potential hurt of this “improvement.”
3. A Concrete Patio is Not A Solid Idea: What do we know about concrete, folks? It cracks and is hard to repair. Plus it causes a glare. Aside from that, it’s a great idea.
4. Money Poured into a Pool Sinks Value: This is another surprise, but a pool in the backyard is not cool, even if it’s as Kool Pool; it’s seen as a liability not an asset. Pools cost money and are a pain to maintain. But even worse, they’re dangerous to pets, frogs that drop in for a dip during the night, and children—and we won’t kid about that.
6. Creating a Jungle is a Bungle. Extensive landscaping doesn’t pay off. The garden you took years to groom can bloom into a negative to two homeowners with blue thumbs who only seen maintenance and hours spent trimming, clipping, cutting and pruning in their future.
7. Wall-to-Wall Carpeting will Pull the Rug Out: The days of wall-to-wall carpeting are long gone and having miles of carpeting on the floor will pull the rug out from your home’s appraised value. People want hardwood floors—not a floor-full of chemically-laden, allergy-inducing carpeting . Sorry if that seems harsh. Don’t appraise us poorly for the remark if it’s a mite negative.
8. Over-improvements will Undermine Value: If you put $200,000 into your home and that puts it way over the top of the value of surrounding homes, it can be costly. This is something we know from years of appraisal experience. Folks want a home that’s right in the middle of the hood in terms of pricing. A home that is radically more expensive may be tough to sell—and that ain’t swell.
SourcesReal Simple: http://www.realsimple.com/home-organizing/home- improvement/renovations/home-upgrade-downers
Penfed Blog: blog.penfed.org/10 things-you-think-affect-the-value-of-your-home/
Blurb at End
PahRoo Appraisal & Consultancy is an award-winning, full-service Chicago appraisal firm founded and operating on the ethos that real estate valuation and analysis is best provided by professionals who have substantive experience in real estate ownership, management, development, and financing. PahRoo provides residential and commercial real estate appraisals, valuation services, and real estate consulting in Chicagoland.