Increasing your home's value

Increasing Your Home’s Value

Which improvement projects will give the highest return on your investment? Five tips from a top appraiser.

With an increasing number of properties hitting the market, you want to make sure that you’re doing all the right things to get top dollar for your property. And while you cannot change your house’s location or size, there are a number of ways you can easily affect the value of your house. “By spending a few hundred dollars on improvements you might earn a few thousand in payback,” says Terry Dunkin, president of the Appraisal Institute. Here are five things that may help secure your asking price.


Maintenance pays off—big time. A house’s condition can be critical to the appraiser’s or potential buyer’s impression, because it indicates the homeowner’s attitude toward his property. “A well-maintained house tells the buyer that you’ve taken care of your property and care about it,” says Dunkin. That helps buyers feel confident that they won’t discover big problems that have been left to fester. But frayed carpets, peeling paint and cracked sidewalks say just the opposite. Luckily, a house’s condition can be a relatively quick fix. By investing in a paint job and new carpets, you can easily up the value of your house.

Keep up with the Joneses. If you’re guessing at whether it would be a wise investment to add granite countertops or an in-ground pool, the best way to decide is by taking a look around the neighborhood. “You don’t want to be particularly above or below your neighbors,” says Dunkin. Hiring an appraiser who is familiar with your area can be particularly helpful in determining how your house measures up. Says Dunkin, “They are out in the neighborhoods and know, for example, if three-quarters of your neighbors do have granite countertops.”
Size does matter. We’re talking in terms of both property and the house itself. And unlike location, you do have a few tricks up your sleeve for this one. “The way you get bigger bang for your buck is by creating living space within the confines of the existing structure,” says Dunkin. That means getting a bit creative, by adding a new bedroom in an attic or converting a basement into a family room.

Some rooms are better than others. When appraisers are valuing a house, the bedrooms and bathrooms are particularly important, because they indicate how many people could comfortably live in the house. This can make an additional bedroom a particularly wise investment.

It’s all about balance. Always keep in mind the cost of improvements versus the impact they’ll have on your appraisal. Investing in a pool if you live in California, for example, may have a significant impact on your house’s appraisal. Doing the same thing in New Hampshire, however, is probably not the wisest investment. Once again, Dunkin recommends working with an appraiser if you need more insight into how much a particular improvement or amenity will add to your house’s value.

Thanks for stopping by and God Bless

Nick Woodard
Keller Williams Realty Franklin, TN
615-566-9839
www.nickwoodard.com