Ways to Increase Value

There are many ways to add appeal to you house. There are many design tips and tricks to add pizzazz to the existing floor plan and attract potential buyers. But appraisers tend to focus on the home’s major components relating to quality of construction and the condition of the improvements that add to the overall value of a property.

 

Upgrades in older siding. Upscale fiber cement siding offers quality and according to Realtors Cost to Value Averages 2008, is the most preferred exterior improvement with the highest return. Midrange vinyl and foamed backed vinyl siding are second and third in this category.

Upgrade kitchens and baths. These areas of the home not only help the seller to add significant appeal but also provide a good cost to value.

Upgrade windows. Upscale vinyl windows, midrange wood windows and vinyl windows are the preferred types and all are energy efficient of course.

An Additional Bedroom or Bath. If the home is smaller than the average house in the neighborhood, than adding an additional bedroom or bath will increase a property’s value.

An Additional Living Area.  Additional living areas such has family rooms, recreation and even sun rooms have become more popular and show not only an increase in desirability but also in return.

Adding a Garage. The garage offers more storage to the home and better utility to the property.  Features like this that offer utility and “better livability” are one of the many improvements that hold their value and makes sense when it comes to investing in home remodeling.

 

 

 

The Energy Efficient Home

A newly constructed dwelling may be considered by lenders as energy efficient if it is built in compliance with qualifying energy conservation programs like that of the National Association of Home Builders (NAHB). NAHB programs meet the classification for thermal performance guidelines or if the building meets standards of the Council of American Building Officials 1992 Model Energy Code.

 

When inspecting a property the appraiser includes an evaluation of any and all energy efficient characteristics of a property and give an overall rating of “Adequate”,” Low” or “High” in the applicable section of the form. The lender may take the energy savings into consideration when evaluating the borrower’s debt to income ratio if the property receives a “High” rating.

A dwelling must include features from each of the three major categories, those being Insulation, Windows & Doors and Heating & Cooling Systems.