Of the many questions we field from homeowners thinking of selling their homes, the most frequent starts with “What’s it worth?” Of course they’re referring to their home’s value, but even after that is determined, the “What’s it worth” questions continue. Following are three of the most common questions about items that may, or may not, add to a home’s value
What’s a view worth?
We typically get this question from a homeowner who just found out that his home with a gorgeous view is worth less than he thought. If two homes are identical and only one of them has a view, it’s a safe bet that the one with the view will be worth more.
How much more? It depends on who you ask. Some real estate professionals claim there is no value in a view, yet others claim that the view may increase the home’s value by up to 15 percent over similar homes that lack one.
Texas Christian University’s Mauricio Rodriguez, PhD and C.F. Sirmans of Florida State University studied the topic and found that, at least for the housing market they examined, “a good view adds about 8% to the value of a single-family house.” (Rodriques/Sirmans: Quantifying the Value of a View in Single-Family Housing Markets)
Since the final determination of a home’s market value is decided by the appraiser, we went on a hunt for an appraiser’s opinion. Michael Fox, a New York State Certified Residential Appraiser with MF Appraisals in Westchester, conducted his own, informal study of the value of a golf course view.
He analyzed 4 years’ worth of sales in a townhome development and found that the golf course view was worth from nearly 6 percent to 6.85 percent, depending on the year the home sold. “Throughout the marketing of the project, regardless of changing market conditions, buyers paid more for units with a view of the golf course.”
Whether the view is of the city skyline, water, open space or a golf course, it is worth something. What’s lacking is a consensus on precisely how much it’s worth.
As an appraiser, we try our best to make a credible report by comparing similar properties if possible (example: golf course view to another home with a golf course view…lake front home with other lake front homes)
Will a pool add value to my home?
Oh, this one is popular. Thankfully, it’s easier to answer than questions about the worth of a view.
The National Association of Realtors’ National Center for Real Estate Research claims that “. . .an in-ground swimming pool adds about eight percent to value” and that “an above ground pool adds no value.”
The National Association of Homebuilders, however, finds that, of homebuyers who expressed a desire for a pool, most said they would be ok with a community pool.
Again, real estate value comes down to location. The value of a pool depends a great deal on where the home is located. Buyers in warm regions tend to put more value on them than those in our country’s cooler areas. So, yes, a pool adds value to a Phoenix or Las Vegas home but may not add a penny to a similar home in Minneapolis or Omaha.
In fact, the National Association of Realtors study we mentioned earlier finds that Southwest homeowners with a pool can realize an 11 percent bump in value (unlike the eight percent for homeowners elsewhere).
For any pool to be considered valuable it needs to be in good condition, otherwise, it may actually drag down the home’s value.
Which renovations will boost my home’s value the most?
Keep in mind that any renovations you make to the home will only pay you back, on average, “64.3 cents on the dollar in resale value,” according to Remodeling Magazine’s 2017 Cost vs. Value Report.
That said, the projects from which you’ll get the most bang for your buck, according to the report, include:
- Replacing attic insulation – A contractor air-seals the attic floor to stop air leakage and then adds fiberglass insulation to a thickness equal to R-30 insulation. This project pays for itself, according to the magazine’s report – returning 107.7 percent of the cost when the home sells.
- Front door replacement – Ditch the old door and replace it with a steel one. It will cost you about $1,400 (national average) and you’ll recoup 90.7 percent upon the sale of the home.
- Minor kitchen remodel – This project involves replacing the cabinet and drawer fronts and adding new hardware; replacing the appliances with energy-efficient models; installing new laminate countertops; installing a new sink and faucet; repainting trim, adding wall covering and replacing the flooring. Total cost: $20,830 and the homeowner will recoup 80.2 percent of that after the sale.
(These numbers are pulled from research and may not have any exact comparison to the Greenville market. All these predictions play into the overall condition of the property: Good vs Average..etc)
Since kitchens are so important to buyers, we dug deeper into this facet of home renovations. Consumer Reports finds that millennial homebuyers overwhelmingly want a “modern/updated kitchen” The group goes on to suggest that for a mere $5,000 you can add new appliances, countertops and flooring and splash some fresh paint on the walls and realize a 3 to 7 percent bump in home value.
Anything you do to the home that helps save on energy bills will be popular with buyers. This includes replacing old windows with high-efficiency versions, replacing utility-hogging appliances and the aforementioned beef-up of the home’s insulation. The Consumer Reports study claims that replacing old windows with “Energy Star certified windows can lower your home’s energy bills by 7 to 15 percent.”
Now THAT is a hot selling point!
Are you a homeowner in Greenville, SC? Have you decided to sell your Greenville home in the real estate market or considering it? If so and you haven’t chosen a top Greenville Realtor, contact me and we can discuss your real estate needs and determine whether us working together would be beneficial or not.
About the Author: The above article “ What’s it worth? 3 questions about Greenville value-boosting home characteristics ” was provided by Andrew Carper. Mr. Carper is a top Greenville Realtor who was born in Taylors, South Carolina and has grown up in this area his entire life. He is a Realtor and Appraiser who can correctly price your Greenville home and market it to the right target audience. Andrew is the founder of SearchGreenville and also a full-time professional Realtor with Elizabeth Carper Real Estate. Established in 1971, the Carper’s have helped many people buy and sell throughout the Greenville County area for years! If you are in the market to BUY or SELL a home and would like his expert advice, he can be reached via email at firstname.lastname@example.org or by phone at 864-304-0040. Let’s connect!
Are you thinking of selling your Greenville home? I am very good at breaking down the numbers for better marketing of YOUR home to sell quickly, and for more money. I have a real passion for helping folks buy and sell homes here in the great Palmetto State and would love to connect with you!
I help people buy and sell real estate in the following Greenville areas and neighborhoods: Greenville, Taylors, Greer, Travelers Rest, Pelham, Augusta Rd., Five Forks, Simpsonville, Welcome, and Mauldin. Other specialty areas include Spartanburg and the Duncan areas.
Additional Links For Greenville Real Estate Buyers & Sellers
3 Factors That May Impact The Sales Price Of Your Greenville Home – Greenville Value-Boosting Home Characteristics
Greenville Smart Home Features – Greenville Value-Boosting Home Characteristics
Upgrade Your Bathroom On A Shoestring – Greenville Value-Boosting Home Characteristics
Your New Home: Now You Need To Maintain It – Greenville Value-Boosting Home Characteristics
Augusta Rd Homes For Sale – Greenville Real Estate
Eight Things You Should Never Say When Buying A House – Greenville Real Estate
House Not Selling? This Might Be Why – Greenville Real Estate
What you need to know about the FHA Greenville home appraisal – Greenville Value-Boosting Home Characteristics
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