What Sellers Can Do To Add Appraisal Value To Their Homes

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.

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.

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

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

Great post - Thanks for sharing with us!

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