Determining items that add value to your client’s property can sometimes be vexing. They can spend a lot of money on improvements thinking they’ll add value to their home, but it won’t matter if the appraiser doesn’t agree.
So how do you know which things add value?
Jamie Chapman, a director of solution consulting at Quicken Loans, says that home improvements don’t necessarily have to be big-ticket items. They can be something as simple as improving your curb appeal by adding a new front door.
She also talked about the fact that replacing a 15-year-old HVAC system with a new top of the line unit may not necessarily add to the property value. Why not? Why wouldn’t the very latest in heating and cooling technology offer your client a good return on their investment?
Unfortunately, replacing your aging HVAC system with the latest and greatest model is a basic cost of keeping up your home and doesn’t add to its value. This doesn’t mean it shouldn’t be done; the new system will make a client’s home more comfortable to live in. It will also make their home more move-in ready if your client decides to sell.
Chapman also discusses the importance of fitting in with the neighborhood. Your client should pay attention to what their neighbors are doing to their houses, and should keep up with the Joneses but not try to outspend them. You know, the Joneses get a lot of attention, but it’s just as important to watch the Smiths and McGillicuddys.
Still have questions? Call us at (866) 718-9842 or read more at http://www.quickenloans.com/blog/home-improvements-that-add-to-your-property-value#b4ZXomSye2Ks3EXS.99.