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What Sellers Can Do To Add Appraisal Value To Their Homes

What Sellers Can Do To Add Appraisal Value To Their Homes

I was talking today to an appraiser about adding value to a home for an appraisal. I had planned to use it as a topic on the Welcome Home Show that I taped today. I decide to go ahead and share the ideas with my newsletter clients and blog subscribers.

If you have the best house in the subdivision don't upgrade inside. If your home is of less of lesser value to the neighbor's homes it will add value.

Add square footage extensions like extra bathroom, bedroom, family room....basements don't count for much. 1st floor and above floors can add value of $65 - $85 per sq ft.

Add hardwood, tile, crown molding, concrete or asphalt driveway or professional finishing inside.

In kitchens - new surfaces: Cabinets(re-paint), countertops, sinks, range tops, built in ovens, flooring. Repaint the walls.

Bathrooms - New Tile floor, double vanity(higher level in master), garden or whirlpool tub, , separate tile shower, toilet, Re-paint walls

Other additions that add value: porch, deck, fireplace, garage, carport or patio.

The condition of your home will add value if it looks well taken care of inside and out.

Buyers are really liking garage hanging storage wall systems even better than jazzed up kitchens, formal dining or big backyard! Who would have thought this?

Buyers decide whether to get out of their car based on the outside appearance of your home.

Take the time to wash windows, trim bushes, repaint the front door, mailbox and pull weeds. It tells a lot about how you care for your property. These homes all appraise well.

*****

Lizette Fitzpatrick - Baby Boomer Real Estate Relocation Specialist with Prudential Don Foster in Richmond, Kentucky.

Rated number #1 featured Kentucky Realtor® on Activerain.com and Localism.com. Publisher/Author for the only Central Kentucky email newsletter on local real estate listings and sold properties, Kentucky relocation, local events, homeowner information and fun! For more information on Lizette, Kentucky Horse Farms, Prudential Don Foster, Madison County, Fayette County, Richmond or Lexington, Kentucky click on Lizette.us.

See for yourself what Lizette's extraordinary clients have to say about their Kentucky real estate experience.

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Posted by Lizette Fitzpatrick - Broker-Realtor® Lizette.US - Kentucky Residential Homes on 08/21/2008 06:04 PM

Comments (50)

appraisal value, welcome home show

Originally posted at: Life...Fun and Kentucky Real Estate: What Sellers Can Do To Add Appraisal Value To Their Homes

Post is included in group: REALTOR LIFE
Post is included in group: Realtors®

50 Comments on What Sellers Can Do To Add Appraisal Value To Their Homes

AUG

I couldn't agree more - the first impression of the appraiser really can go a long way. If they are tripping over the dogs tied up in the front yard - you're not off to a good start! (Not that I've had this happen, btw... <G>)

Great post to potential sellers.... I just did an open for another realtor the other day and I could not agree more with you here. I was pulling out the windex two minutes in the place washing windows and white doors like a mad man. These are great reminders. Sellers should tour other homes in the neighborhood by top listers to get a sense what needs to be there to help sell that home.

stanley.stepak@realliving.com

www.realtyone.com/stanley.stepak

visit avonlake.org

AUG

Love this info Lizette!! Thanks very much. Love all your media exposure!!

Lizette,

Great advice and much needed to help homes sell too,

Lizette--You do such a wonderful job explaining how to care for a home! Lovely front door--That's CURB appeal!

Great post. this is good to know and a must for sellers

Very thorough - thanks for sharing.

Well said it starts with the out side looking good , if outside is not taken care of it is very unlikly some on will get out of the car .it is like giving some one the first immpression, and the sale starts right there

Very good. I can't tell you how many listings we have read with "upgraded kitchen" when all they did was replace a frig. To me that's simply maintenance and doesn't add a dime of value.

Home owners ask what they can do to add value and I always tell them that the only thing that will add significant value is to add square feet. Even then they won't get back what it cost.

Regulat maintenance is the best way to preserve value.

Great ideas, thank you for sharing

Lizette, Congratulations on this featured post.

I have heard that you can send an appraiser to two identical homes and the one with high priced automobiles in the drive way and on the street, raised the appraisal by a significant amoung.

I agree completely with you buy it can be quite a challenge at times to convince sellers of this!

Lizette, Thanks for sharing the great list! I am shocked that buyers prefer hanging storage in the garage over a souped up kitchen! Who'd of guessed that one? AND, over a huge back yard? Seems like an easy, cost effective way to get a leg up on the competition!

Yes, curb appeal is everything!! Many of us have been there - - wouldn't even get out of the car upon first glance at a property.

Great idea!

Did not know about the garage hanging wall systems--makes sense, though, storage is always a plus!

Lizette~ I think first impressions make a HUGE difference! It is amazing how many people won't even look at a house if they don't like what they see from the outside...

I am in total agreement with you on this. One thing that has really irked me up here in the Seattle area is that people tend to really neglect that landscaping. They might throw out a few bulk bushes and a thin layer of bark in the beds, but usually lawns and landscaping around here aren't showroom quality. Even in new home developments, too little thought is put on curb appeal.

I like your comment about garage storage. We are introducing a new storage system to gain storage room in the garage up at the ceiling. People are loving it!

Thanks for the post. It's always hard to know what goes through appraisers minds.

I was surprised that basements don't add value to the appraisal. We had COMPLETELY renovated our basement which has added 1100 square feet of living space and when we went to refinance we were shocked that this did NOT add value to the appraisal. Sadly, this fact is true, so sellers renovate those kitchens and baths.

Phyllis Pafumi

I agree, and fresh and clean can go along way too. Sellers that don't have alot of money

to update can give the fresh and clean look and get good curb appeal, and inside notice.

So true! I passed by my own home several times before taking a look inside. It was really hard to see the good qualities hidden behind the overgrown oak tree in the front yard.

And if you can't upgrade any of those things, just make sure everything is in good repair and clean, clean, clean and clutter-free.

Thanks for the thought provoking post!

Debbie - I can just picture the dogs tied up out front!

Stanley - You would think that sellers would have windows and doors clean for an open house. I notice those things and dirty wall plates too.

Susie! Thanks! Things are really starting to click together lately. I love your new pic!

Don - I hope this helps some of my sellers that are on the fence about what to upgrade with.

Teri- Thanks! I have to admit that is my front door! LOL

Kay - Hey, Tennessee neighbor thanks for stopping by!

Tim & Pam! Wow, more Tennessee professionals! Thanks!

Raj - You are right. I have had a few clients that refused to go in after seeing the street appearance.

Lenn - It's sad but true. I can only hope that they enjoy their addition for awhile before they sell.

Rich- Thanks for the reblog! My first.

Margaret - I haven't heard that one but I bet it's true! Good to hear from you!

Lizette, This really is good information. I agree with all the points made here and most especially the outside to get them IN. Congrats on your feature!

Terrie - Thanks for stopping by!

Elizabeth - If I think back through houses I've shown I can tell you that if I open the garage door and the whole area is tricked out... I am truly impressed. I've recently been working on my own garage. It's looking great.

Connie - You and I like many of the same things. I enjoy a neat look.

Grace - Thanks!!

Ravinder - Love your name! So unique.

Vickie - I agree. It seems like a simple idea.

Chris - Aren't those souped up garages great? If the husband is the decision maker of the family you know he will pick that house.

Steve - I thought it was worth asking him to see.

Phyllis- I have mine finished too. Good thing I am not trying to sell. I really enjoy my basement and spend half my time there.

Sandy - It does seem simple but sellers that are slobs have a problem being clean to try to sell. It shows all over the house inside and out how poorly they take care of the house. If it isn't clean how can you see what might be in disrepair?

Heather - I agree!

Carole - Thanks girlfriend! The feature was a surprise tonight.

AUG

Thanks for the very informative information. Not everyting adds value so it was nice to see a list of things that do and can pass on to our sellers.

Thans for the ideas on sprucing up the home. It definitiely helps to go the extra mile before the appraiser shows up.

Good info, Lizette... And timely too - We were just discussing what brings value in an appraisal - Will send this off to my partner in this discussion - Thanks !

Lots of good tips here. I always remind my clients not to improve their home for their neighborhood unless they simply want to enjoy that improvement --e.g. in ground pools, hot tubs etc. Appraisers are telling me they are giving those types of things very little value .. especially in today's market.

Smart advice from an expereinced agent! You are right on the money!

Very good points. I once saw a Town Home with Travertine Marble in the MBA, needless to say it brought very little return on the dolllar, but the Sellers loved it for their own enjoyment.

I don't believe many of those things like tile and type of counter tops really add appraisal value. Sure it adds to homeowner value in terms of buyers and sellers value. But to a bank and appraiser little updates like garage organizers add little or no value. The additions and subtractions on a appraisers sheet are usually things like sq footage, number of bathrooms, bedrooms, how many car garage, finished or unfinished basement, quality of construction, condition, actual age, heating/cooling, porch/patio/deck, energy efficiency items, functional utility.

Now days if an appraiser would state that this house is worth more because it has tile over carpet or new paint versus a house that needs paint will raise scrunity with lenders. They will give value additions to a very superior house will lots of updates but one room with crown molding most likely won't make the appraiser additions and subtractions.

Russ has a good point about differentiating between appraisal value and homeowner value. There is a difference between the two. It all depends on the motivation of the seller, and if they want the house to sell, it better be in turn-key condition. Most buyers are just not interested in doing any fixes themselves.

Great stuff Lizette! People have always asked me what they can do to help their home appraise for more so I wrote a blog post myself.

It's always important to remember though, that location is the most IMPORTANT factor affecting a homes value. Your improvements/renovations need to conform to the area (location) you are in. Some of the improvements you mention (such as garage storage systems) may be more popular in some locations over others; its not an across the board thing.

An exaggerated example of this would be building a pool in a neighborhood where no one else has one and where the property values are so low it would not be practical. You can do it and you might enjoy it but you will probably not get the most out of your investment. When the homeowner that built the home in the above example goes to sell it, his potential buyers will be reduced because not everybody wants a pool and because it is in a neighborhood of lower value, (and probably lower income levels) not everybody may be able to pay for the expense of keeping up the pool. This example is rather exaggerated, but I hope you get the idea. All improvements should conform to the area to get the most return on your investment (higher appraised value). The cosmetic improvements such as painting, crown molding, and keeping the home in tip top shape always give you the most bank for your buck.

Pam - Thanks for stopping by! Glad I could help.

Michael- You are sooo right. Nice houses sell and neglected ones don't.

Marcia - If you come up with other ideas add them here. Thanks!

Joan - Yes, It's that way here too. Not too many people have pools. The above ground ones don't even add any value.

Jim- You are so sweet! Thanks for popping in tpo see me.

Judy - I guess the seller should install anything that will bring them enjoyment. ..but keep in mind selling in the future.

Michael - Thanks for the info.

Russ - Most of those finishing improvements just impress buyers not appraisers. Square footage still is the best route.

Howard- You are right. Most buyers really want the house to be in move in condition.

Tom- Thanks for all the good information. Could you please edit out the link to your post? It's one of our rules here not to hijack other members posts. I don't want to delete the whole thing.

Lizette: The first comment is a bit confusing to me....though I think I understand where you're going here. May be a less confusing way to phrase it. Good points for sellers!

Lizette,

Sorry about the hijacking. I removed the link (I didn't even know that wasn't allowed).

This is a solid list Lizette. Very useful.

It is hard to explain to a seller why they will not get dollar for dollar for their upgrades. And if they have over improved they will be really disappointed with the appraisal value.

Well qualified advise for home sellers! In the Seattle area, it is interesting the "picks" that sellers make to improve their homes while sometimes ignoring the most important ones. Lists like these help.

AUG

I like the list you've compiled. Sellers want to know what inexpensive things will add value to their property, true value, not just perceived value.

Lizette, great list and a wonderful topic. Very useful to sellers and to home owners that are just trying to add value to their home for their present enjoyment and future sales.

This is a great list. It never ceases to amaze me at how underestimated decluttering, cleaning, fresh paint and routine maintenance pays off. Nearly every staging consultation we do highlights these points -- curb appeal and first impressions matter not only with buyers but appraiser and sellers can do so many things affordably to make improvements

Tom - Thanks! I loved all the information you had to share. Come back and comment anytime.

Chris - Thanks for stopping by to comment.

John - Thank you! Glad you enjoyed it.

DeAndrea - Yes, how true. And even worse if their upgrades are not good ones that a buyer will pay for.

Juliana - So right. Sometimes it's good to give sellers a list like this so you don't have to tell them.

Christina - Thanks for stoppping by my post. I've seen house after house sell because it is neat as a pin, with immaculate paint and decor and attention to detail.

Irina - I just love it when you pop in! Hope you are doing well!

Margaret - You are right on the money. Simple stuff we wish all our sellers could do.

Thanks for advice Liz... you keep it simple but very effective.

AUG

Great post - Thanks for sharing with us!

Christina - Simple is how I like it! Thanks for commenting!

Norma - Thanks for reading my blog!

That's great tips. This is something everyone can use and easy to follow.

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