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Which home renovations add the most to the price?

gonzaleztjustin2024-03-07T12:19:22+00:00

The answer to this is different depending upon the location of the home. Different markets value amenities differently. Adding an In-Ground pool in Tallahassee or Crawfordville may add significant value, while putting one in a home located in Buffalo, New York might not have much impact.

As a rule, the most value returned from renovating a home comes in the kitchen. According to one national survey, kitchen remodels returned an average of 88% of the investment. In other words, a $10,000 kitchen remodeling project would add approximately $8,800 to the value of the home. Bathrooms were second, returning 85%.

Which home renovations add the most to the value?

gonzaleztjustin2024-03-04T10:35:19+00:00The answer to this is different depending upon the location of the home.  Different markets value amenities differently.  Adding a central air conditioner in Houston, TX may add significant value, while putting one in a home located in Buffalo, NY might not have much impact. As a rule, the most value returned from renovating a home comes in the kitchen.  According to one national survey, kitchen remodels returned an average of 88% of the investment.  In other words, a $10,000 kitchen remodeling project would add approximately $8,800 to the value of the home.  Bathrooms were second, returning 85%.

Who actually owns the appraisal report?

gonzaleztjustin2024-03-04T10:35:34+00:00In most real estate transactions, the real estate appraisal is ordered by the lender.  While the home buyer pays for the report as part of the closing costs, the lender retains the right to use the real estate appraisal report or any information contained within.  The home buyer is entitled to a copy of the real estate appraisal report – it’s usually included with all of the other closing documents – but is not entitled to use the report for any other purpose without permission from the lender. The exception of this rule is when a home owner engages a real estate appraiser directly.  In these cases, the real estate appraiser may stipulate how the appraisal can be used; for PMI removal, or estate planning or tax challenges, for example.  If not stipulated otherwise, the home owner can use the real estate appraisal for any purpose.

What is “Market Value”?

gonzaleztjustin2024-03-04T10:35:39+00:00Market value or fair market value is the most probable price that a property should bring (will sell for) in a competitive and open market under all conditions requisite to a fair sale; the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus.  Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:  (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised; (3) a reasonable time is allowed for exposure to the open market; (4) payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.

How do I get ready for the appraiser

gonzaleztjustin2024-03-04T10:35:45+00:00The first step in most real estate appraisals is the inspection.  During this process, the real estate appraiser will come to your home and measure it, determine the layout of the rooms inside, confirm all aspects of the home’s general condition, and take several photos of your house for inclusion in the report.  The best thing you can do to help is make sure the real estate appraiser has easy access to the exterior of the house.  Trim any bushes and move any items that would make it difficult to measure the structure.  On the inside, make sure that the real estate appraiser can easily access items like furnaces and water heaters. The following items, if available, will help your real estate appraiser to provide a more reliable appraisal in a shorter period of time:

• A survey of the house and property
• A deed or title report showing the legal description
• A recent tax bill
• A list of personal property to be sold with the house, if applicable
• A copy of the original plans

What exactly is PMI and how can I get rid of it?

gonzaleztjustin2024-03-04T10:35:49+00:00PMI stands for Private Mortgage Insurance.  It insures a lender against loss on homes purchased with a down-payment of less than 20%.  Once equity in the home reaches 20% you can eliminate the PMI and start saving immediately.

Why do I need a professional appraisal?

gonzaleztjustin2024-03-04T10:35:54+00:00Anytime the value of your home or other real property is being used to make a significant financial decision, an appraisal helps.  If you are selling your home, a real estate appraisal helps you set the most appropriate value.  If you are buying, it makes sure you do not overpay.  If you are engaged in an estate settlement or divorce, it ensures that property is divided fairly.  A home is often the single, largest financial asset anybody owns.  Knowing it’s true value means you can make the right financial decisions.