Home Appraisal FAQs - Appraisals Which home renovations add the most to the homes value?
Which home renovations add the most to the homes value?

Value of Home RenovationsThere is no straight forward formula or answer to this question. It is often reported that highest returns on investment is spent on kitchen and bath renovations. The actual percentage of increased value can vary greatly, dependent on many factors. To insure the highest return on an investment, keep in mind the following guidelines:

  • Your improvements should be in line with those found in other homes in the area. Improving below (under improvement) or over (over improvement) will return a lower percentage of investment.
  • Make sure that the improvements you make are in keeping with the balance of the home. An over improved bath will have little return on investment when the balance of the home is under improved.
  • All maintenance repairs and replacements should be made before capital improvements. A home with a new kitchen and a damaged roof, will not return as high of a percentage investment on the kitchen, as a home that has been well maintained overall.
  • The quality of the design, workmanship and materials of the improvement will affect the return on investment. Inferior quality of materials or workmanship will not have as high of a return on the investment as a higher quality improvement.
  • A property location will also influence the return on investment. A central air conditioning system will provide a higher return on investment in areas like Florida and Texas where high temperatures and humidity are typical, and have a much lower return on investment as in locations like Washington and Oregon, where the climate is moderate and many homes do not have or use central air cooling.

A qualified appraiser can perform appraisals or consulting services to aid on your improvement decisions.

Still have a questions?  Nexus Analytix™ can provide answers for your real estate appraisal questions. Please contact our offices at, Phone: (856) 985-0008 or by e-mail.

 

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