RENOVATION BUDGET VS APPRAISAL

2 Replies

Hello! Renovating and selling but don’t wanna overspend:

So I have a home I bought in an up and coming neighborhood for 114, i owe 108 but it can sell for 150+ with a decent renov. However, WHAT DOES AN APPRAISER OR HOW DOES AN APPRAISER PUT A PRICE ON AN UPGRADE? For example, would he give the same value for a kitchen with matching white appliances as opposed to stainless steel matching? Or a new inexpensive ceiling fan vs one thats also new, but costs 200 more but u really cant tell that its that much more? If u apply that concern to the whole house, u can see that 200 here and there adds up to thousands saved, if appraiser will give me the same value if I used whirlpool all white instead of whirlpool stainless steel?

@Nelson Copo

Welcome to Bigger Pockets...

Appraisers based their analysis on similar condition and properties of similar in the area. If you don't want to overspend, you should look at listings in your area of similar properties that have been renovated. That will determine what people are willing to spend.

Originally posted by @Nelson Copo :

Hello! Renovating and selling but don’t wanna overspend:

So I have a home I bought in an up and coming neighborhood for 114, i owe 108 but it can sell for 150+ with a decent renov. However, WHAT DOES AN APPRAISER OR HOW DOES AN APPRAISER PUT A PRICE ON AN UPGRADE? For example, would he give the same value for a kitchen with matching white appliances as opposed to stainless steel matching? Or a new inexpensive ceiling fan vs one thats also new, but costs 200 more but u really cant tell that its that much more? If u apply that concern to the whole house, u can see that 200 here and there adds up to thousands saved, if appraiser will give me the same value if I used whirlpool all white instead of whirlpool stainless steel?

 If the goal is to not overspend relative to the value opinion of an appraiser, stick to basic stuff. A new functional $500 widget is likely to add about the same value as a new functional luxury $750 widget. The $750 one only makes sense if you will get $250 of personal enjoyment out of it, or if it'll drive rents up a bit.

But if widgets are standard in homes in that area, you don't want to skip the widget entirely. Not having a widget at all might be a $10k adjustment.