Calling all Buyers (yes Buyers)!
Whether you want to invest in a rental property, flip a house, or it’ll be your main home, here’s how to increase home value for appraisal.
Our homes aren’t just where we lay our heads down at night or store all of our belongings — they’re also an opportunity to build wealth through home equity. As your home’s value appreciates, you’re earning money just by owning it. It’s a simple way to build personal wealth, providing you maintain the home and keep it in good condition.
For example, people who sold their homes in 2018 were able to sell at a median of $55,000 more than their initial purchase price!
On the down side, it’s hard to pinpoint how much a home will appreciate over time. There are many factors at play that contribute to a property’s market value, such as market temperature (is it a buyer’s market or seller’s market?), market inventory (are there enough houses to meet demand?), and inflation. On top of this, you may not even be ready to buy or sell a house when the market is in your favor!
If we lived in a perfect world, we’d buy a new house when the market is on our side … but, that’s the thing about the real estate market — it doesn’t wait for anyone. Don’t worry, though, because that doesn’t mean you’ll get the short end of the stick. You could buy a cheaper house that needs some work and make plans to fix it up. In which case, it helps to know a little bit about what goes into home value, and how you can increase that value for the appraisal when the time comes to sell.
How to increase home value for an appraisal
The trick to buying a fixer-upper (or even an investment property) is determining how to increase home value for appraisal. Even though you may not intend to sell your home for a while, it’s still beneficial to know what you can do to improve your home so you can get the top dollar when you do decide to sell.
First things first, you’ll want to understand how a home appraiser calculates a property’s value.
How do appraisers calculate value?
An appraiser doesn’t just look at the house when they are figuring out the market value. They’re also looking at the bigger picture.
They’ll consider external factors such as:
What are the sales prices and appraisal values of recently sold comparable homes?
How developed is the neighborhood?
Are there any notable market trends?
How large is the lot, and what is its zoning classification?
What is the driveway made of and is there a garage or car storage?
What does the home’s curb appeal look like?
For the property itself, an appraiser is going to look at:
The square footage of the home
Number of bedrooms and bathrooms
Materials used for flooring, windows, countertops, and so on
The overall condition of the home
Have the bathrooms or kitchen been upgraded?
Does it have a full or partial basement, a crawlspace, or attic?
Have other home improvements and upgrades been done?
Are there other desirable features?
Fireplace
Waterfront view
Close to public transport
Swimming pools
And so on
