Getting Value Out Of Property Renovations (NAPSA)—Most homeowners assume that remodeling their kitchen can significantly increase the value of their home, but fewer homeowners recognize that the increase may depend on the degree of remodeling and the costs involved. Cost does not necessarily equal value. “Not every renovation will pay off at closing,” says Richard Powers, MAI, SRA, President of the Appraisal Institute. Powers offers a few dos and don’ts of home improvement that may help consumers sell their homes for more or more quickly: Don’t overimprove. Look for what’s standard in the neighborhood. Adding a deck might seem Homeowners beware! Every dol- lar spent on renovations does not necessarily equal an additional dollar of resale value. community norms generally pay the neighborhood has one, you may off the most. To help you get value out of your home improvements, con- Fresh paint (stick to neutral col- member of the Appraisal Insti- like a good idea but if no one else in not see a return on investment. Do invest in basic upgrades. ors), new fixtures, flooring and lighting in kitchens and bath- rooms can pay dividends. Do consider adding an extra bathroom. Homeowners can often recoup the extra cost of a bathroom at closing because of the appeal that extra bathrooms have for homebuyers. eForgo the swimming pool. Pools generally turn off more peo- ple than they attract because of the perceived upkeep and insurance costs and thefear of liability. eKnjoy your renovation. Why wait until you are ready to move to have that new kitchen? Gener- ally, a new kitchen will hold its value for one or two years. QOn all these projects: Those that add square footage to bring a house up to—but not beyond— sider consulting with a designated tute. Those members with an SRA designation have experience in residential valuation. Those with MAI or SRPA designations are knowledgeable about commercial property. When discussing home or business renovation, a professional real estate appraiser can advise you on how different improvements can influence property value. If the renovation is considered major, the appraiser can complete a feasibility study—an analysis of the property, the cost of rehabilitation and an estimate of the property’s value after improvement. To find an MAI-, SRPA- or SRA-designated appraiser in your area, or for more information, visit the Appraisal Institute at www.appraisalinstitute.org.
