Renovating to raise appraisal value?

[Anonymous]

We bought a fixer upper, and plan to renovate and refinance to remove the PMI. The initial appraisal gave us a leg up at $50k higher than our purchase price, and we would like to raise it another 50k or so.

HVAC is new, but the house is in desperate need of floors, kitchen, baths, decks, etc.

What items really increase the appraisal value, and which don't matter?
For example...for kitchens,do cabinet brands matter, or just appliances and counter tops? Is it more about quality or appeal?

[Anonymous]

Anonymous wrote:We bought a fixer upper, and plan to renovate and refinance to remove the PMI. The initial appraisal gave us a leg up at $50k higher than our purchase price, and we would like to raise it another 50k or so.

HVAC is new, but the house is in desperate need of floors, kitchen, baths, decks, etc.

What items really increase the appraisal value, and which don't matter?
For example...for kitchens,do cabinet brands matter, or just appliances and counter tops? Is it more about quality or appeal?

Any appraiser will look at comps in your neighborhood, often looking at pictures from the MLS online to compare to your home. Best case scenario is to find houses in your neighborhood that are similar to yours in layout and size (within 10% of sft) that sold at a price you want your house to appraise for. Then look at the photos and see what their houses looked like inside. If you can't find comps in your neighborhood directly, then expand your area to within a mile of your home. Another option is to call your buyers agent and ask for a list of homes the list I just described.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We bought a fixer upper, and plan to renovate and refinance to remove the PMI. The initial appraisal gave us a leg up at $50k higher than our purchase price, and we would like to raise it another 50k or so.

HVAC is new, but the house is in desperate need of floors, kitchen, baths, decks, etc.

What items really increase the appraisal value, and which don't matter?
For example...for kitchens,do cabinet brands matter, or just appliances and counter tops? Is it more about quality or appeal?

Any appraiser will look at comps in your neighborhood, often looking at pictures from the MLS online to compare to your home. Best case scenario is to find houses in your neighborhood that are similar to yours in layout and size (within 10% of sft) that sold at a price you want your house to appraise for. Then look at the photos and see what their houses looked like inside. If you can't find comps in your neighborhood directly, then expand your area to within a mile of your home. Another option is to call your buyers agent and ask for a list of homes the list I just described.

^^*like the list I just described.

need more coffee.

[Anonymous]

Brands, countertops, etc. have no affect on appraisal value. All that matters is the number of bedrooms and bathrooms above grade, the amount of space overall, the lot value and how those things compare to similar properties that have sold recently.

Finishes don't matter, although new systems will get you brownie points.

[Anonymous]

Anonymous wrote:Brands, countertops, etc. have no affect on appraisal value. All that matters is the number of bedrooms and bathrooms above grade, the amount of space overall, the lot value and how those things compare to similar properties that have sold recently.

Finishes don't matter, although new systems will get you brownie points.

We haven't had an appraisal since we moved in 13 years ago, but I can't imagine that a kitchen remodel doesn't increase house value. A house with 20 year old cabinets, white appliances, and laminate counters can't possibly appraise the same as the neighbors house with new cabinets, stainless appliances, and granite countertops.

[Anonymous]

A remodel does help appraisal value, but style choices don't matter. Literally, an appraisal will say something like "standard kitchen" if no Reno in 15 years or so, and "modern kitchen" otherwise. You'd have to go incredibly high end to get much of a bump, and you will come out at a loss if you over improve relative to comps. Number of beds, baths, and square footage drive the vast majority of appraisal value.

If you are literally only looking to increase equity, it is much easier just to put money down. Most remodels do not return 100% of price as value.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Brands, countertops, etc. have no affect on appraisal value. All that matters is the number of bedrooms and bathrooms above grade, the amount of space overall, the lot value and how those things compare to similar properties that have sold recently.

Finishes don't matter, although new systems will get you brownie points.

We haven't had an appraisal since we moved in 13 years ago, but I can't imagine that a kitchen remodel doesn't increase house value. A house with 20 year old cabinets, white appliances, and laminate counters can't possibly appraise the same as the neighbors house with new cabinets, stainless appliances, and granite countertops.

I've never seen more than a 10k bump for a kitchen Reno and you know they all cost more than that.

[Anonymous]

We have had 2 appraisals in the last 7 years. The first once we had only re-done one bathroom. It was a low appraisal. Fast forward 7 years we did a major renovation - entire basement, and new kitchen, all bathrooms are now new, new windows, floors etc. Significant improvement in appraisal value. We when asked the appraiser he said that he rates the level of finishes - so our old kitchen was not original 1950's but a 1990's update the one we just put in receive his highest rating - we have inexpensive appliances but it was all new. Same with the bathrooms - 1950s were considered poor, current renovation was rated high. So they aren't looking at exact finishes but they will note if age and quality to come up with the value along with sq footage.

[Anonymous]

We're hoping to do what OP did - moved into a well kept, but mostly unrenovated 1930s house. If we're trying to increase square footage for appraisal, will finishing the attic or the basement (not a walk-out) help? We plan to add a bathroom in the basement.

[Anonymous]

Apprasial of the kitchen only gets higher if you use granite and stainless steel appliances. If you use ge stainless vs wolf or 20k stove it doesn't make a difference.

-learned from my last appraisal