Michael D. Vairin, Realtor Associate
By Michael D. Vairin
(Honolulu)–Since you would have great difficulty in picking up your home and moving it to that incredible view or beach lot, you will have to focus on other opportunities that can produce real value. Ultimately, your lender will want to know that the price you are selling your home and your buyer is paying, is actually worth that amount. That is accomplished mainly by the lender conducting an appraisal on your home.
An appraisal is a third party analysis of the value of your home conducted by an appraiser who is retained by the lender. The appraiser will inspect the home and compare it to like homes in the same market area. Through this analysis, the appraiser will adjust the value of the home up or down. While there are certainly factors that are out of your control, such as lot size, views, age of home, house size, room count, and zoning, there are other factors that you can take full advantage to improve your overall value and appeal to the market.
Here are a few other areas that definitely have an impact on the value and ones that are more directly under your control:
- Curb Appeal– That initial impact of driving up and seeing the home for the first time is really important. This is one of the main areas that can be improved, sometimes by simple improvements such as tree trimming, general shrub and planter clean up. The primary objective of the landscaping is to highlight and enhance the overall appearance of the home. Does someone feel welcome by the appearance or does it feel cold and uninviting. If so, it does not take a major investment to improve these features. In addition to the landscaping, particular attention should also be paid to the condition of the roof, exterior siding, eaves, gutters and paint. Sometimes just improving the front porch by adding some tile or masonry and replacing the front door have a big impact on that first impression.
- Overall Condition– You can do a lot to improve the value by insuring that the overall condition, inside and out, is in top shape. We have all seen those older homes that have such charm and attraction, and so many times it is simply due to the great condition and maintenance of the home. Older homes can tend to generate clutter and have some deferred maintenance. It could be helpful to seek advice and input by other professionals via your realtor, decorator or home improvement contractors to give you ideas and estimates in time and cost. It is important to make these decisions and actually have them completed prior to putting your home on the market.
- Upgrades and Remodeling – The old adage that, kitchens many times sells houses, still has a lot of merit. Kitchen components have improved dramatically over the last decade and consumer expectations are higher now. So if you happen to have a kitchen that is still in original condition from the 1960’s, then considering upgrades could have a significant impact not only on value but the overall emotional appeal to the home. The story is similar for bathrooms. Simpler improvements could be new flooring and paint. Again, getting input from the right professionals will go a long way to decide the most effective areas to spend dollars to maximize the overall all appeal and value.
Keep in mind that there are other factors that figure into the overall formula which determines the value of your home. I have spoken about many of them, but other factors such as; the age and condition of the mechanical systems, solar improvements, the number of parking spaces, garage or carport, location, neighborhood, and security, need to be factored into the value analysis. The first step to a potentially complex analysis, is to retain a real estate expert who fully understands these multiple factors in value. The best real estate professionals know these factors and can be your best resource in determining the market value based upon your unique home conditions and features.