go to Value adds

[Max Pfeifer]

Without full gut rehabbing, what are some high value add changes/renovations to look for. How much do astetical renovations add to an appraisal. Is raising rents a reason for higher appraisal? 

[James Jones]

A few clarifications that will help frame this correctly:

1. Cosmetic upgrades mostly protect value, they don’t create much of it.

Paint, flooring, fixtures, and minor kitchen/bath refreshes help:

Shorten days on market

Reduce buyer or lender objections

Support top-of-range comps

But on their own, they typically don’t produce a meaningful appraisal jump unless they correct functional obsolescence.

2. Appraisals follow comps first, not effort or spend.

Residential appraisers are constrained by:

Closed sales

Similar size, age, condition

Recent market activity

You don’t get “credit” for spending $25k if the surrounding comps don’t justify it.

3. Rent increases matter more than finishes on income properties.

If the property is valued using an income approach (or even informally supported by it):

Higher documented rents

Stabilized tenancy

Reduced vacancy

Those things absolutely support higher value, especially on small multifamily and refi scenarios.

4. High-ROI value adds that do move the needle without gut rehabs:

Adding bedrooms or bathrooms (legal, permitted)

Converting unused space to livable square footage

Improving layout or functionality (not just finishes)

Fixing deferred maintenance that impacts habitability or inspection results

Increasing rent through market alignment, not just cosmetic rent bumps

5. Think in terms of “bankability,” not beauty.

The best value adds:

Reduce lender risk

Increase predictable income

Improve functional utility

Not necessarily what looks best on Instagram.