As anyone who has bought or sold a home in Austin in the past several years knows, the Austin real estate market is hot, and experts are predicting that 2014 is going to be another great year. “It’s hard to say anything negative,” said Eldon Rude, the founder of 360° Real Estate Analytics and one of the speakers at the recent 2014 Austin Housing Forecast. With buyers continuing to offer cash, more than the asking price, or both, for property in some of the city’s most desirable and up-and-coming neighborhoods, it’s no wonder that many people with a home for sale are looking to cash in. However, it’s important to not only consider what you think your home might bring, but also how an appraiser will assess your property. In short: a low home appraisal has killed many a real estate deal.
What does this mean for sellers? First and foremost, be sure that any market analysis of your home takes into account how appraisers will look at your home and its amenities. Last week, several Blairfield Realty agents attended a class given by the Austin Board of Realtors about how to provide a true market analysis in today’s market.
The skinny?
First and foremost, adding amenities to your home does not necessarily add dollar-for-dollar value, or to put it more succinctly, cost does not equate value. Appraisers have some commonly accepted practices for valuing amenities. Here are some examples:
- A fireplace may create approximately $1,500 in value, while a wood stove adds around $500-$750.
- In-ground pools, if they are common in the neighborhood, will add value of about 10-20% of the cost of the pool. This percentage may be lower in lower end areas. Hot tubs or above ground pools are generally considered personal property and not included in the value of the home.
- Wood fences add around $1,500-$2,500 to the value of a home. Sprinkler systems add around $2,500.
- A porch, patio or deck can add $1,000-$5,000 to the value of a home.
- Completely remodeling a bath will
add 1/3 to 1/2 of the cost of the remodel to the value of the home. - Differences in construction material (flooring, roof type, granite counters etc.) can increase a home’s value by anywhere from $2,500 for some tile flooring to $5,000-$10,000 for a metal roof to $50,000+ for a home with many upgrades.
What about things like scenic views, condition, age, updates and specific location? At Blairfield Realty, we know that you can’t determine the price of a home based on statistics and averages alone. Our advice? If you’re a homeowner, you should add the amenities you will enjoy, and if you’re thinking of selling your home, you can be confident that at Blairfield Realty, we have the education and experience to provide you with a true and thorough market analysis.
Contact us today for a complimentary market analysis on your home.
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