When you refinance your home the task gets sent to an appraiser to find out its fair Market Value. Market Value is defined as the highest estimated price that a buyer would pay and a seller would accept for an item in an open and competitive market. Even though you are not selling your home, the Market Value comes from the real estate market around your home. So we pretend that your house is going to compete with the comparable homes around you to find its fair Market Value.
There are things you can do that can boost the value of your home, but there is a catch. The dollar amount you spend on remodels and upgrades most likely will not correlate into the same value increase. Just because you fit your house with $10,000 gold plated faucets does not mean you increase the value of your home by $10,000. Bummer I know, but not all is lost! When you upgrade or remodel you get to enjoy those things and that is what's most important.
When it comes to Market Value there are things you can't change: Location. It is the most important aspect that affects Market Value.
Things you can change in your home that make it appear more desirable to potential buyers which indirectly increases its Market Value.
Create Space
Having an open layout in your home is all the new rage in what people like and what buyers are looking for.
Landscape
Having a neat lawn and well pruned flowers or garden helps with the curb appeal.
Natural lighting
Two words. Sun Tubes. They are less expensive than skylights and let lots of natural light in.
Care and Maintenance
When things break, fix them. Potential buyers want turn-key homes with no deferred maintenance.
Home Begins at the Front Door
Research says that a buyer makes their decision in the first 7 seconds of walking into a home. Spruce up that front door.
Bath Upgrades
Bath upgrades can get expensive fast, but there are things you can do for cheap that can help. Replace caulk, Clean grout, and get rid of those iron stains.
Kitchen Upgrades
Replacing outdated appliances can enhance your cooking experience. The kitchen is the heart of the home.
We hope this list helps you get an idea on what can affect your home’s Market Value when it comes to being competitive on the open Real Estate market.
Feel free to send us an e-mail if you have any questions at alan@wea.services