How can you add premium value to your home? Beyond the variables within the control of the owner, the home will appreciate in value depending on the prevailing conditions in the market. In addition to this, there are other variables that come into play, and these include the overall condition of your home, specific home improvement projects done and the overall state of safety and stability of the community. The highest jump in prices of homes generally occurs when the economy is going strong. It is during these times that home prices are usually on the higher range.
On the other hand, you can also gain substantial increase in the value of your home through carefully planned and properly executed home improvement projects. In most situations, there are specific home improvement projects that provide the highest added value. These include bathroom remodeling, which can provide as high as 81 percent return, bathroom addition, which can provide 89 percent return, and master bedroom, which can give you 82 percent return.
You have to remember that quality translates to higher value. Proper home remodeling projects are one of the best investment options of homeowners, and poor or inferior home improvement projects amount almost to nothing. You must also remember that the overall state of security and safety of the community directly impact on the actual value of your home. If you are living in a community with higher crime index, a full-functioning watch program in your community can help boost the value of your home.
Does buying a larger home result to higher profits?
You have to take into consideration the following critical variables when deciding whether to go for home addition or move up to a bigger home. Assess your financial condition. Determine how much you have in your coffers and your probable source of additional funds in order to determine how far you can go. From there, decide whether you can afford a larger home or not. If the current budget is not enough to cover your equity for a larger home, then you may have to seriously consider your home addition option.
You must also evaluate the actual additional space required. Carefully assess the overall design of your current home. Can the foundation accommodate a second floor or can the lot area have available space to cover the additional room on the ground level? You must also verify if the home addition complies with existing zoning and building ordinances. Finally, you must also check out available home units for sale that can satisfy your requirements.
At the end the day, your final decision will have to be based on your needs and preferences, the scale and scope of work required and the added value for each of your home improvement options.
Assessing the real value of the home
Proper assessment of the actual worth of your home must be anchored on a reliable comparative market review or an appraisal. A real estate agent will be able to help you derive the numbers and come up with a comprehensive comparative market review, which is the determination of the value of your home based on careful comparative price analysis between your home and similar type of real estate property within your community. You can also gather relevant information by accessing records not only from your local assessor’s or recorder’s office but from private entities as well. You can also check out available information online.
Home appraisal is generally defined as professional opinion of a certified appraiser on the actual value of the home at a particular time. Appraisers take into account a number of factors when making a fair assessment of the actual value of the home, and these include location, area, construction and improvement history and comparable sales.