Remember that the added value from renovations differs widely based on a number of factors. The Appraisal Foundation
has collected some important tips to achieve maximum effectiveness, and quality as economically as possible in your remodeling projects, at the same time you maximize your appraisal.
Cost does not always equal value
First, remember that appraisers do not simply add the cost of renovations to the value of a home. Instead, appraisers determine how much buyers are willing to pay for specific renovations in the marketplace, which often varies greatly depending on location. If you are considering renovations, you could research “cost vs. value” data by checking sources such as Remodeling Magazine. According to the magazine, some of the most common renovations that return the most on the investment are: new front entry doors, midrange kitchen remodels, and bathroom remodels.
The principle of substitution
When evaluating renovations, appraisers rely on the “Principle of Substitution,” which essentially says that buyers would pay no more for a special feature in a home than the cost of renovating a similar property. Imagine that “Home A” and “Home B” are identical, except that “Home A” has had its kitchen remodeled
at a cost of $50,000. Let’s assume that a similar kitchen remodel in a similar home can be performed for only $25,000. The Principle of Substitution says that the owner of “Home A” would not be able to recoup the full $50,000 paid for the kitchen remodel. Typical buyers desirous of a home with a remodeled kitchen would simply purchase “Home B” and renovate the kitchen themselves, saving $25,000 in the process. Of course, appraisers also consider the value buyers might find in not having to go through the hassle of doing the renovation themselves.
Energy conservation features can increase the value of a home
Appraisers take into account energy-efficient features (high-efficiency windows, solar water heaters, photovoltaic solar systems, etc). However, the value of these improvements is based on what the market is willing to pay — which differs depending on the community. Homeowners can hire an appraiser beforehand to get a better sense of how much value an energy-saving renovation will add to their home.
Location is crucial
The value added due to renovations depends on geographic region. For instance, a new in-ground pool will most likely add more value to a home in a warm-weather climate, where residents can take advantage of it year-round, rather than a cold-weather climate.
Maintenance can be as important as renovations
An appraiser often takes into account the maintenance of a home including recent heating or air conditioning inspections, septic system servicing, roof inspections, and other types of inspections.
Keep your house organized
While a home’s tidiness/neatness isn’t officially evaluated in an appraisal, clean houses generally leave people — including appraisers — with a more positive impression. In addition, neat homes make it easier for appraisers to perform a proper inspection, and may suggest that the homeowner performs regular maintenance on the home.
Preserve your records
It is important that you keep records of all inspections, additions, conversions,
or other structural or significant work performed on your home, so that an appraiser can easily review it.
Don’t be afraid to communicate with your appraiser
While homeowners are not permitted to unduly influence an appraiser, sharing relevant information about renovations to your home is appropriate. In fact, a competent and ethical appraiser will welcome information that makes his or her job easier, and leads to a more credible opinion of value.
Before committing to any project keep in mind, the value added to your home is based primarily on what the market is willing to pay. And Benjamin Franklin Plumbing can assist you carrying plumbing renovations all year-round, providing great advice and professional support on these upgrades you may be considering.
Benjamin Franklin Plumbing has a team of professionally trained plumbers, whom together with the appropriate tools and extensive experience, can help you carrying out:
- Kitchen remodels
- Outdoor kitchens
- Bathroom remodels
- A second sink
- Upgrading old showerheads, toilets, and faucets
- Installation of pipes, repair any leaks
- Install other appliances
Contact them today! Benjamin Franklin Plumbing of the Treasure Coast and North Palm Beach.