Whether you are getting ready to sell your home or simply want to know what it’s worth, home values and how to raise them, has been a big topic of interest lately. For many people, their home is their largest investment and the single biggest purchase they will make in their lives. They care about its value.
There are a few things you can do to raise your home’s value, whether it is for sale or you are still planning to live there. When deciding to do renovations and maintenance, keep the value of your project in mind. While you may want to do a renovation for your own satisfaction and enjoyment, it’s a good idea to also keep the value of your house in mind.
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What Determines Home Values
The amount you will get paid for your home depends on your local market and what buyers are willing to pay. In some areas, houses are selling for more than their appraised values because of demand. When more people want to buy than there are houses available, people are willing to pay more.
The other factor is the appraisal. Banks usually won’t lend more than the appraised value of the house. If it appraises for less than you are offering, you can offer less or pay the difference out of your pocket. So your home’s value is determined by the appraisal, your market, and what buyers are willing to pay.
How Appraisals Work
During the appraisal, the home will be evaluated against other homes of similar condition and size. The appraiser will usually inspect the home, noting any problems and the condition. Using other houses in the area that recently sold, the appraiser will calculate a price he thinks the home is worth.
Be Honest With Your Realtor
When you are getting ready to sell your house, it’s important to be honest with your realtor. They can’t do their job well if you don’t tell them what you know about the house, the property, and its condition. If you hide something and it comes up on the inspection, you risk losing the sale or having the buyers ask for a much lower price.
Check the Little Things
Your house will be inspected both by future buyers and by inspectors. It’s easy to forget about small issues that you have been living with, like a receptacle that doesn’t work, defective ceiling fans, or missing weather stripping around doors. While you may have forgotten about these issues, you can be sure someone will notice them.
When inspectors are hired, the buyer is hoping the inspector will discover problems with the house, giving them a reason to haggle the price down. So inspect your house as if you have never seen it before. Check all the outlets, faucets, doors, and windows. Look for paint scratches and dings in the flooring. Repair whatever small problems you can find, because the better your house looks to buyers and inspectors, the more money you can ask for it and the faster you will find a buyer.
Clear Clutter and Personal Things
When you are getting ready to sell your house, you may still be living in it. That’s okay, but you should do what you can to clear out everything unnecessary. Remove family pictures, decorations, and extra things like storage items. Go through your clothes and your kid’s toys to eliminate everything you can.
Ideally, your house will contain nothing but furniture, things that can’t be seen (like the items in the kitchen drawers), and a few choice and well-places decorative items. If you are unsure, ask your realtor for recommendations. Consider hiring a staging company if you have a high-end property.
Clean and Maintain
Having a clean and well-maintained house can be one of the most important things for attracting buyers. No one wants to picture living in someone else’s mess. Clean everything as thoroughly as you can, and keep it clean.
Ideally, you would hire a cleaning company to help you because you will be having frequent visitors and you will need to keep the house clean while still living in it. A professional will see your house through new eyes and spot problem areas that you probably haven’t noticed, like the dust on the top of the books and the cobwebs in the dark corner of the upstairs closet.
Kitchen Renovation
Studies show that a renovated kitchen may make a big difference in your home’s value, especially if it no longer fits the quality or style of the rest of the home. A dated kitchen is a big influence on buyers choosing not to purchase your property.
When choosing to do a kitchen remodel, it’s important to know which features and factors make the most difference and how not to overspend. Pricy but dramatic features like custom range hoods can make an otherwise simple kitchen look modern and elegant. Some features, like granite countertops, are expected in all homes of a certain value and are expensive. Other things, like paint color, window treatments, and cabinet pulls, can look classy even if you choose a cheaper option and those areas are where you will want to save money.
Bathroom Update
A bathroom update is also a good way to make your home stylish and bring it up to date. This doesn’t always mean renovating the whole room. Updating the features that are aged, like hardware, faucets, and light fixtures isn’t always expensive. Even if you need to replace a larger item, like a shower or flooring, the cost is often less than expected because the room itself is smaller.
Landscaping
Landscaping is very influential to your home’s value because it’s one of the first things they see. Consider updating or simply restoring what you have by mowing, trimming, and cleaning. If you need to update your landscaping, it doesn’t always have to be a huge change. A new flowerbed, sidewalk, or added shrubs can have a big effect.
Deck
According to some studies, adding or replacing a deck can have a big effect on your home’s value. Consider building a deck or other outdoor living space on the back of your house, or adding a porch on the front if it’s missing one. A wooden or composite deck can completely pay for itself when you sell your house, depending on your location.