AYN Advice

How To Improve The Value of Your House

One of the ways that professional ‘real estate appraisers estimate the value of a residential property is to compare that property with others that are of similar nature, located in the same or similar neighborhood, and which have sold recently.

Professional real estate appraisers - those with the CRA or AACI designation from the Appraisal Institute of Canada - are simply market analysts who must be aware not only of the importance of physical characteristics of buildings but also of market trends and their impact on value.

The prime characteristic of the properties used for comparison in a appraisal is their similarity to the subject in size, condition and most important - location.

Location is a paramount factor because people want very much to live in an area which suits their socioeconomic status or aspirations., therefore. tend to take on a relatively homogeneous nature. and most houses in a given area tend to have similar characteristics.

Trends are taken into account

The determining factor in the market value of a house is literally what a prospective purchaser is prepared to pay for it. The size and condition of the house are important, but so are market trends at the time of appraisal. all of which are taken into account by the real-estate appraiser.

For example, at the moment, en suite bathrooms off the master bedroom are a desirable feature. Other characteristics desired in houses today are main-floor family rooms, two-car garages and working fireplaces.

The basic value of a house is enhanced by neat, clean appearance both inside and out. If you intend to put your house on the market, you’ll want to consider its appearance, but take care not to make changes that are too personal, such as a unusual or dramatic colors scheme.

Houses that are 15 or 20 years old may show degree of wear and tear replacement of fixtures in the kitchen and bath, for example, can enhance value.

Landscaping, because it is part of that all important first impression, should also be considered.

Basement finishing is a popular feature today. high-quality drywall finish is preferable in the 1990 to the wood panelling that was popular years ago. I should caution readers however, that the cost of finishing a basement may not be fully recovered in some cases, as when the size of a house is substantial and the below ground space is not as important as in a smaller house.

Pools do not add value. It’s also not a good idea to add special features such as a swimming pool just to try to add value to a property; the current rule of thumb in valuing houses with pools is that they are neither a liability nor an asset. In any case, you are not likely to recover the cost of installation in the price of the house.

Not all the characteristics of your house are entirely within your control - the quality and integrity of your neighborhood is another significant factor in the value of your house, which is why many people prefer to locate In areas where there Is a certain degree of conformity.