How can I improve the value of my property?
Outside of a
homeowner's control, the biggest factor is market conditions. Other important
issues are:
- condition of the property
- specific home improvements
- neighborhood stability and safety
The greatest rise in
home prices occurs when the economy is strong and the number of home sales is
increasing. Specific home improvements can increase the value above the cost of
the improvements.
- remodeled bathroom returns,
81 percent to the owner
- bathroom addition, 89
percent
- master bedroom suite, 82
percent
Remember, quality
pays. Well-planned and well-executed remodeling jobs are a good investment
while bad work seldom enhances value or livability.
The safety and
security of a neighborhood can affect property values, too. If you live in a
high-crime area, an organized community watch program not only will lower the
crime rate but give home values a boost, too.
How can I increase the value of my property?
Specific home
improvements can increase your property value above the cost of the
improvements themselves, such as remodeling a kitchen, adding a bathroom,
finishing a basement or upgrading landscaping. Just be sure that quality pays
with remodeling. A bad remodeling job will do little to boost your property
value.
If you live in a
high-crime area, an organized community watch program not only will lower the
crime rate but can enhance property values, too. It also helps to live in an
area where other homeowners are upgrading their homes, which can help pull up
your property value, too.
The bottom line is
to measure the cost of any improvements you want to make against the overall
values in your neighborhood. If you over improve for the neighborhood, you may
not necessarily recover your costs or boost your property value significantly.
Will buying a bigger home increase my profit?
Consider these
questions before making a choice between adding on to an existing home or
moving up in the market to a bigger house:
- How much money is
available, either from cash reserves or through a home improvement loan,
to remodel the current house?
- How much additional space
is required? Would the foundation support a second floor or does the lot
have room to expand on the ground level?
- What do local zoning and
building ordinances permit?
- How much equity already
exists in the property?
- Are there affordable
properties for sale that would satisfy housing needs?
Ultimately, the decision should be based on individual needs, the
extent of work involved and what will add the most value.
How do I find out how much my home is worth?
A comparative market
analysis and an appraisal are the standard methods for determining a home's
value.
Your real estate
agent will be able to provide a comparative market analysis, an informal estimate
of value based on comparable sales in the neighborhood. Be sure you get listing
prices of current homes on the market as well as those that have sold. You also
can research this yourself by checking on recent sales in public records. Be
sure that you are researching properties that are similar in size, construction
and location. This information is not only available at your local recorder's
or assessor's office but also through private companies and on the Internet.
An appraisal, which
generally costs $200 to $300 to perform, is a certified appraiser's opinion of
the value of a home at any given time. Appraisers review numerous factors
including recent comparable sales, location, square footage and construction
quality.
What are the differences between market value
and appraised value?
The appraised value
of a house is a certified appraiser's opinion of the worth of a home at a given
point in time. Lenders require appraisals as part of the loan application
process; fees range from $200 to $300.
Market value is what
price the house will bring at a given point in time. A comparative market
analysis is an informal estimate of market value, based on sales of comparable
properties, performed by a real estate agent or broker. Either an appraisal or
a comparative market analysis is the most accurate way to determine what your
home is worth.
I am a realtor working in South Florida. If you need help buying or selling a home, please contact me. Also, please view my website where you will also be able to search the MLS.
