Curb Appeal: The way your home looks on the outside has a relatively significant impact on its value. According to a recent article on CNNMoney, an appraiser may cut up to 3% off the value of your home if the outside is unkempt and dilapidated. This might include chipped and peeling paint, overgrown grass and bushes and other signs of distress.
How to improve it: Give your house a good once over before an appraiser comes out and be proactive in fixing damaged areas, touching up paint and trimming and landscaping your lawn. Consider power washing your home, adding a new coat of stain to your deck and planting flowers to add some color.
Systems: Appraisers are looking for functional electrical, plumbing, heating and other basic systems in your home. If these are not working properly, your home's value maybe drop several percent.
Make Repairs: Ensure that you fix leaks, update electrical and double check the ventilation and other systems in your house. According to Forbes.com, spending $2,000 to fix plumbing issues can generate a $4,000 increase in your home's appraised value.
Trendy Improvements: It may seem like a good idea to convert one of your spare bedrooms into a theatre or a yoga studio, but appraisers understand that trends die and future owners will have to pay to renovate such spaces.
What to do: skip improvements that are likely to go out of style in a few years. Instead opt for things that add lasting value to your home like additional bathrooms or a finished basement.
Efficiency: In this day of rising gas and electrical prices, energy efficiency equals increased value.
How to get efficient: Replace windows and appliances with energy savings options. Many states offer funding for energy improvements so look into these to see if your household qualifies.
As an East Lansing Realtor, I can also offer you a Free Home Market Analysis that considers recent comparables in your area, your home's features and the current housing market to determine your property's value. I can help you buy or sell property in the Greater Lansing and East Lansing areas of Michigan. Contact me today for more information.
When you go to buy a house, unless you’re throwing down all cash on the deal, you’ll need to get a home appraisal. The lender requires this because they want to know that you’re not borrowing a million bucks for a $50 home because in the event their own due diligence on you is faulty (and you default), they can at least take the home and sell it for the value of the loan. If the appraisal comes back lower than the selling price, then the lender is a little wary of extending you credit because now you have no collateral to back it up. (This explanation only applies to the appraisal of an existing home, I don’t have experience with a new home)Property Appraisals
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