Its a good time to update!

Home Depot and Lowes Home Improvement have been very busy lately as homeowners stay at home and value their space.  Home offices, porches, yards and kitchens have been the fastest categories for improvements. When it comes to an appraisal and value added by improvements- kitchens are number one and bathrooms are number two- adding almost 85% back into the home value if all other variables are similar for the neighborhood.  Remember adding too much can be a bad idea if you OVER build or OVER do for  the neighborhood. It doesn’t make your value more, it may help it sale faster.

Often people think their home is the BEST because of updates and expensive interiors- if the neighborhood isn’t expensive your house won’t be either.  There is a range pricing , comparable projections, in this standardized industry format that must be calculated for value. Costs are added and deducted for house items in an appraisal-  value is added in for items superior and value is deducted for inferior house items. This is a standard in the industry- you can’t compare something if not similar. Fireplaces, pool/spa, landscaping, garages, are all taken into considerations with number data.  Neighborhood, location,  exact calculated living  square footage, floorplan,  acreage, condition ,obsolescence, view, and  building methods are all considered by the appraiser closely. Custom homes are calculated a little differently with interior costs also. Track homes are valued within a range. Houses do increase in value when demand is high and the market is limited. The housing market relates  to outside variables and changes also- -ie. interest rates, economy, local markets, time of year and so on. Some things you can’t control-

Keep in mind when adding/updating to your home, take all things into consideration,  understand the market, hire an SRA, or MAI apprasial to do an appraisal if concerned with value. Tucson is a constantly changing market- we are smaller than Phoenix, less affluent, we are spread out with a slower laid back life style.  There aren’t enough lower priced homes, which sell  fast , and too many expensive (over $1,000,000) which take 1 year. The average selling home price is a $245,000 range- that requires  $48,000 (20%) down for a conventional loan. Tucson sells a lot of homes with Pathway home loans with 5% down.  FHA and VA have different selling requirement and sometimes are harder to get.

Buying a house is a big commitment, be prepared and understand the local market. Understand what you are gaining from your updates.

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