Can I change my house’s appraisal value?
You’ve painted, sanded, and updated for weeks or months; you’ve done everything your real estate agent suggested in order to add curb appeal to your home. Why don’t you see the cost of all those improvements reflected in your home’s appraised value?
In general, property listing prices are based on what an individual buyer would pay for a specific home. Appraisal values are more complicated, factoring in market conditions, specific location, unique features, and current sales prices for similar houses in the local property market. The final appraisal value changes due to adjustments based on detailed analysis of differences in property size, condition, and features. Some property updates might raise your list price, but have no effect on your appraised value. Other updates could boost or lower your home’s appraisal value. Since the appraisal value can play a big role in your refinancing options or the buyer’s loan prospects, let’s take a look at some typical items that can change your home’s appraisal value.
Items That Can Help Raise Your Final Appraised Value
1. Installing an A/C system.
2. Upgrading your kitchen, especially appliances countertops, and flooring. (Note about upgrades: do not over-upgrade! While you may enjoy up to a 59% return on investment for kitchen remodels, improvements that aren’t “common” or that are much more expensive than typical improvements in homes in your market niche will not increase the appraised value.)
3. Finishing your attic, which increases the overall living area of your home.
4. Finishing your basement (though this will not increase the square footage of your home, it will change some square footage from unfinished to finished, which is valued much higher).
5. Updating old windows to energy-efficient windows.
6. Upgrading older and outdated bathroom fixtures, shower and bath stalls, vanities, and sinks. (Here also: avoid over-upgrading!)
7. Installing new flooring.
Add-ons That Won’t Improve Your Final Appraisal
1. Bold or dark paint, low-quality paint, tacky tile, too much wallpaper, carpet everywhere
2. Pools, hot tubs, or built-in aquariums
3. Sunrooms (3-season porches)
4. Home office
5. Home theaters (unless it’s a high-end home)
6. Extravagant landscaping, large gardens, greenhouses, firepits, or outdoor water features
7. Wine cellars
8. Solar panels (the value of photovoltaic systems depends on the neighborhood/market, but it is uncommon to significantly increase the value in the eyes of the market).
9. Bedroom removals (removing walls to combine rooms) or closet removals
10. Garage conversions
11. Children’s playgrounds, playhouses, or catios
Issues That May Decrease Your Final Appraisal
1. Unfinished upgrades
2. Fast, cheap remodels or shoddy workmanship
3. Incomplete repairs, visible damage, or lack of standard maintenance
4. Outdated or non-working fixtures and appliances
5. Falling neighborhood market prices
Your full appraisal from White House Appraisals will consider all of the factors discussed above, and more, including a professional property evaluation and on-site measurements. Contact us today to answer your questions, and let us know how we can serve you!
