What adds the most value to a home? – Home Value Questions and Answers

This article is for the average homeowner and not for people who want to update “upper class” homes in great neighborhoods. The things that add advertising value to a house come in two aspects; One being the home’s value to a new buyer and two being the actual appraised value. There are different things that add value to one or the other and sometimes both.

First, the things that add value to a new buyer are visual things. 80% of the sale is appeal. The houses being sold are a lot like humans if you think about it. We all have our own problems and failures, but we don’t want to advertise it to our neighbors. Yelling at husband/wife and kids is something we try to do in the house if you know what I mean. Selling the house has some similar characteristics; It is the house that looks nice on the outside that is sold first. Any minor defects inside the house can be fixed once the buyer has moved out. Most people don’t want to be the one with the ugliest house on the block.

Another similar feature is that newer is better. People like new trends, what is currently popular and always looking for something better. Having a few of those popular items scattered throughout the house will update, even if the entire house hasn’t been remodeled. How is it updated and modern? Here are some tips;

• Cleaning (the most important)
• Green lawn, trees. Trim bushes and trees, plant annuals for great curb appeal.
• If your kitchen cabinets look shabby, consider painting them if you can’t replace them.
• If your sinks or baths aren’t white, replace them.
• Light and neutral paint colors. Paint the ceiling lighter than the walls to add height.
• Rugs in neutral and light brown tones.
• Tiles with a natural stone look to them (if they aren’t real anymore)
• Stainless steel. Brushed steel or bronze fittings (gold is out)
• Vinyl windows, energy efficiency
• Textured walls.
• The kitchen and bathrooms are the most important rooms in your house.

Creative decoration can be a great asset. Get creative and make it look clean and tasteful – this will add the most value to a new buyer. Just keep in mind that “overall decor” is better. Not everyone likes the same decoration. I once bought a really nice (expensive) ceiling fan to put in a house. I thought it would be a great selling point as it was so beautiful to me; it was the first thing the owner tore up when he moved in. So do not overdo it and fall in love with your decoration.

Second, the things that add value to an appraiser and make your home worth more are more structural and product-based. Modern upgrades have a small bearing, but it’s mostly upgraded in an overall way that makes the best difference. For example, if you replaced your old wood grain Formica countertops with a mosaic countertop that would be considered an “update.” Whether or not you used granite or ceramic tiles may or may not make any difference at all. That difference would depend on your home, if you’re in a $500,000 home and adding ceramic while all your neighbors have granite, then your tile countertops would be a bit of an upgrade. But if you live in a modest neighborhood where most other countertops were still fashioned (but newer than wood grain), installing granite doesn’t add more value to your home over ceramic. A good example is like seeing a really big, beautiful house with all the bells and whistles built in a neighborhood where all the houses were that size with minimal improvements. The value of that big, beautiful house will be less than one of its peers placed in a better neighborhood. What your neighborhood offers will give you a great gauge on how far you need to upgrade to add value. Going “little” past your neighbors, going out and outpacing them by miles isn’t going to earn you as much value as it might seem. Just try to think about upgrading generally, shop wisely, and forget about “brand name” purchases. 25-year-old carpet and 10-year-old carpet rarely make a difference in appraisal value.

Then it comes down to adding appraisal value to a home, it will be limited to things like square footage, age of the home, stick built or manufactured, etc. Within those limits, this is the best way to add that value (yes, they’re in order);

• Add square footage with an addition.
• It has a garage or store space.
• Drywall and textured walls. (Get rid of any wood paneling, especially if it’s dark)
• Kitchens and bathrooms are the most important rooms.
• Kitchens; new countertops, new (or refinished) cabinets, new linoleum or tile flooring, etc.
• Toilets; good lighting, white tubs and sinks, tile or linoleum floor, very clean toilet, etc.
• New Carpet/Flooring Floors: Wood floors (real and laminate) may have a higher value. Carpet brand usually doesn’t make a difference, nor does padding. Details like fixtures, appliances, paint colors (neutral is best, not white), etc.

Above all, new paint goes a long way to value, even if it looks good, a fresh coat of paint can make all the difference in the world to both a potential buyer and an appraiser. It is also a task that the whole family can do.

Determining what adds the most value to a home will take a little neighborhood research, but when you’re done, you’ll be sure your hard-earned dollars are being spent on things that really add value. Plus, we all love to save money and time. If you need a definitive number on what a certain upgrade could add in terms of value, then you should visit an appraiser in your area.