Home remodelling is an exciting project that involves modifying, altering, repairing or adding to your home in order to beautify or upgrade it. Anything from kitchen and bathroom remodelling to the addition of a new deck or an extension translates to a huge investment of time and money by homeowners. As it is always important to note the effect of modifications on the overall value of the building, another objective may be to make the place more enjoyable to live in. This is where getting a home appraisal after renovation comes into play.
Why get a Home Appraisal After Renovation?
A home appraisal is an evaluation of a home and comes out with its market value based on some factors, such as the area of land, size, style, and kind of material used in the construction of the home. It is wise to get an appraisal both before and after you’ve embarked on a renovation project so you can know how you stand in terms of value.
Here are some reasons why it’s a good idea to get your home appraised after renovation:
1. What is the return on your investment?
Doing up a house can be costly, and anyone who is thinking of upgrading, repairing, or expanding may ask themselves if it is worth it. If you get your home evaluated after renovation, you will be in a position to determine whether the value of your home has been affected in any way and to recover the costs you had put in the renovation. The following information will assist you in determining whether your home improvements were a wise investment and thus aid in future decision-making.
2. Provide Information in Making Subsequent Selling Decisions
It is always useful to be aware of your home’s modified value if you will inevitably be required to sell it. These costs may be recovered from any development that has been done to the property: if the assessment reveals that the enhancements have boosted the value of the house you can adjust the price to suit the ROI. On the other hand, if the value does not meet your expectation, then one might look the selling strategies applied or even make different enhancements to try and improve the property’s value even further.
3. Get some Cutting-Edge Strategies to Thrive in Your Local Market
The real estate market is not easy and every inch you can get is quite valuable. Post the renovation you should conduct an appraisal on the house so as to compare the house value to other competing houses in the market. With this knowledge you can price your property appropriately or bargain for better terms when selling the property. Especially valuable if you are targeting a buyer’s market, this insight is an absolute must-have.
4. Increase Your Home Refinancing or Home Equity Loan
For those who plan on getting a new mortgage or taking an equity loan on their home after doing some repairs, an appraisal could be useful. Normally, banks and other lenders regard premises that have been renovated or have been through an extension as less risky because the homes inherently carry more value. In many cases, if the appraisal shows that your home has appreciated after the renovation, you will get better loan rates or qualify for larger loans.
5. Obtaining a higher estimated home value.
The internet has home value estimators, which are used by most people who want to know the value of property they own. Although these tools are useful, they cannot be very reliable as they do not take into account the peculiarities of performing a renovation. When you renovate your home, it is important that you get a professional appraisal so that you get to see whether the online estimates, to some extent, reflect the true value of your property in the current market.
When to Get Your Home Appraised
The correct timing in seeking the services of an appraiser after the renovation of your home depends on several factors and purposes of the exercise.
Here are some scenarios that may warrant a professional appraisal:
1. If a person intends to sell his or her home today or in the near future, it is wise to seek an assessment of the home after a renovation project to get the current market value of the home as expected by customers.
2. If you’re seeking a mortgage refinancing or equity loan, you may want to gain an appraisal after the renovation to try to get a better rate or possible loan amount based on the current property value.
3. If you have made enhancements which would require a large sum of money, you will find out if such enhancements helped to increase the value of the property through a post renovation appraisal.
4. In a property dispute or when you have been involved in a divorce where the worth of the house needs to be determined or if you want to sell your home and want to know its value in the market, an appraisal can provide you with correct and unbiased account of the value of the property.