Sellers and those looking to refinance both have to face a home appraisal. While many homeowners are often excited about the appraisal process, because their homes generally appreciate, you never want to be shocked at the results of an appraisal.
Unwise Renovations
Not all renovations are created equal. Some renovations are surefire ways to boost your ROI, but others can be a time and money sink. Recouping your cost is not always guaranteed with any renovation, but some are more likely to generate a higher dollar value at appraisal than others.
These renovations can have the most bang for your buck:
- Minor Bathroom Remodel
- Landscaping
- Minor Kitchen Remodel
- Attic Bedroom Conversion
- Major Bathroom Remodel
- Major Kitchen Remodel
Neglecting to Organize
While appraisers aren’t there to judge the tidiness of your home, they are humans too, and a messy home will inevitably send a message. A cramped and dingy home can indicate that you don’t maintain or care for the home, and a lack of organization can make the home seem smaller than it is. While a good appraiser will work with the facts and not just their opinions about the home, an unorganized or messy space can prevent the appraiser from seeing certain updates or value-adding features.
Forgetting to Look at Comps in Your Area
Real estate comps, or comparable homes, are used to help determine your home’s value. knowing comps in your area can help you quite a bit with the appraisal process. First, it can allow you to present some information to an appraiser, but it can also inform you of important features or updates that your home may be lacking that other homes in the neighborhood May have. These can be easy choices when it comes to making renovations before an appraiser.
Upgrading Appliances Without Eco-Friendliness in Mind
An eco-friendly home is highly coveted these days. Young buyers are very interested in a more eco-friendly lifestyle, and eco-friendly options often are energy saving which can translate to real savings on utilities down the line. When upgrading any of your appliances or any home fixtures, opt for the eco-friendly option to entice buyers a little more. this can be a helpful thing to point out when your home is getting an appraisal.
