How to Increase Your Home Appraisal Value

If you’re selling your home, one of your primary focuses might be how to increase your appraisal value. Putting your energy into renovations and improvements that provide the highest bump to appraised value will help your money go further and maximize what you get for your home. In this guide, we’ll discuss some of the best ways to improve the appraisal value of your home before you hire a local home appraiser to assess your property value.

1. Focus on Curb Appeal

Improvements to your home’s curb appeal will often have the biggest positive impact on your appraised value and sale price. Improvements to the exterior of your home leave buyers and home appraisers with an immediate positive impression of your property that can then color how they assess the rest of the home. The specific upgrades below will provide the most bang for your buck when it comes to boosting your appraisal value.

• Painting or replacing your siding

• Replacing your roof

• Installing new gutters and downspouts

• Installing a new front door

• Investing in new trim, shutters, and lighting

• Improving your landscaping

• Replacing exterior windows

2. Consider Improving Energy Efficiency

With rising utility costs and more of a focus on environmental friendliness, buyers and appraisers alike will likely look fondly at energy efficiency improvements in your home. Appraisers will see the actual value of reducing wear and tear on heating and cooling systems and bringing down utility costs in the future. Buyers will also be attracted to the resulting lower utility bills and the modernization of the home. Consider the following efficiency improvements to boost your home value before paying the cost of a home appraisal.

• Install solar panels

• Install an EV charger

• Upgrade your HVAC system to a more efficient unit

• Invest in a smart electrical panel and smart thermostat

• Replace old insulation

• Replace old windows and doors

• Upgrade to EnergyStar-rated appliances and fixtures

3. Renovate Your Kitchen and Bathrooms

Appraisers and buyers both look at the condition of your home, and the focus tends to go toward the more expensive and challenging rooms to renovate: the kitchen and the bathrooms. The return on investment or ROI of a kitchen remodel can be as high as 96%, and that number can sit above 100% if your appraiser sees that you’ve improved the utility of the kitchen or added more storage space.

Bathroom renovations provide an ROI of between 55% and 60%, on average. With the average cost of a bathroom remodel sitting around $12,100, that’s a significant bump in appraised value.

4. Add to the Living Space

Appraisers will always take a home’s square footage into consideration when assessing value. In most cases, more square footage means a higher property value, which, in turn, means that adding to your home’s square footage can drastically increase your appraised value. There are a few ways you can add to your home’s living area.

• Finish the basement: If you have an unfinished basement, you could hire a professional to finish it for you to add significantly to your living space. Finishing a basement boosts home value by an average of around $12,900.

• Finish the attic: Similarly, finishing an attic can add quite a bit to your square footage. The cost to finish an attic is around $20,000, and you could see between $10,000 and $20,000 in added value after the project, especially if you boost home efficiency in the process.

• Spring for a home addition: Of course, you can always add onto your home to boost square footage, but this is the most expensive way to increase living space. Expect to pay an average of around $50,000 for the cost of a home add-on.

5. Make Sure You’ve Got the Basics Down

Splurging on adding to your square footage might not make the most sense if your existing living space has serious issues. It’s a good idea to make sure your home’s roof and mechanicals are in order before going for the projects with a higher ROI. Consider hiring a professional to assess the following to avoid taking a hit on your home appraisal value.

• Fixing roof leaks or replacing the roof altogether if it’s near the end of its life

• Ensuring there are no plumbing leaks

• Repairing or upgrading your HVAC system or performing a simple tune-up

• Getting an electrical inspection done and carrying out any recommended repairs

• Upgrading to 200-amp electrical service, which is the modern standard

6. Start With a Strong Foundation

One of the most severe issues with a home that can hurt your appraised value is foundation damage. If you suspect you have foundation issues, hire a structural engineer to assess your home and recommend repairs. You should carry out those repairs before focusing on any other home improvements.

7. Upgrade Appliances

Finally, upgrading your appliances can be a great way to add value without having to renovate your entire kitchen. This can be especially helpful if you upgrade from old appliances to energy-efficient ones or if you spend the money to ensure your appliances all match, which should bump up your market value and your appraised value.

8. Ask an Appraiser

If you’re not sure where to start, you can always ask a professional who does home appraisals where you should focus your efforts for maximum ROI. Consider hiring a local appraiser or hiring a home inspector to get an idea of where your money would go the furthest.