How to Increase Your Home Appraisal Value: 6 Strategies to Help

Whether you’re planning to sell your house, refinance your mortgage, or tap into your home’s equity, a home appraisal is a crucial part of the process. A home appraisal will estimate how much your home is worth based on its features, location, size, and more. So, you may be wondering how to increase your home appraisal value.

In this Redfin article, we’ll highlight six strategies to help you increase your home appraisal value. Whether you’re selling your home in Reno, NV, or refinancing your house in Sacramento, CA, here are the key things to focus on.

1. Create curb appeal

Make your home look picture-perfect – before anyone even enters the home. A good first impression of your home may attract more potential buyers and create interest in your home. Consider the following updates:

• Paint the front door or exterior
• Touch up the trim
• Install flower boxes
• Mowing or raking the front lawn
• Trim trees and shrubs
• Add fresh mulch to the garden
• Fix cracks in the driveway
• Update old light fixtures

2. Clean and stage your home

Decluttering, cleaning, and staging your home can all attract buyers and make your home look more valuable. Any obvious signs of dirt or disrepair can impact your home appraisal, so be sure to clean your home. Take time to:

• Deep clean floors, walls, and surfaces
• Freshen up paint, especially in high-traffic areas
• Stage the primary bedroom and living spaces
• Remove personal items like family photos and collectibles
• Consider renting furniture or decor to elevate the space

3. Make updates that pay off

There are countless home improvement projects out there – some are more likely to add value than others. There are plenty of lower-cost projects that may help increase your home appraisal value. Consider projects like:

• Replacing your windows
• Installing new floors
• Remodeling your kitchen
• Replacing old appliances with new ones

You can also choose to make small improvements like painting your cabinets, refinishing your floors, and fixing any light fixtures.

4. Keep track of improvements

If you’ve made improvements over the years, it’s important to document these. Receipts or before and after photos can all show the investments you’ve made in the home. Even improvements such as appliance replacements or a new AC unit can be important as buyers won’t have to worry about replacing them anytime soon.

Large-scale improvement projects like a new roof, kitchen remodel, and finishing a basement can often have a higher return on investment (ROI). It’s important to highlight these features as it can help increase your home’s value. 

5. Learn what buyers want

Part of determining how much a home is worth is understanding what home trends buyers want. Ask yourself:

• Are buyers looking for stainless steel appliances and hardwood floors? 
• Do you live in a warm climate where AC units and outdoor pools are in demand? 
• Or do you live in an area where finished basements are popular?

Knowing what buyers in your area are looking for can help you determine if you should make additional updates to your home. 

6. See how your home compares

A big component to selling your home and determining its value is by seeing how your home compares to other recently sold homes. Real estate comparables, “comps,” are recently sold homes that are similar to your home. You’ll want to look at homes that have a similar square footage, upgrades, and features to get an idea of what your home is worth. 

An appraiser will use comps as part of their appraisal process. However, it’s a good idea to know beforehand what similar homes are worth. Then if there’s an issue with the appraisal value you can bring up the comps. 

How to prepare for the home appraisal

When you sell your home, an appraiser will estimate how much your home is worth in the process of a home appraisal. The size, quality, condition, and presence or absence of key features impact your home’s appraised value. Knowing what the appraiser will look at can help you prepare. 

Size: Your home’s total number of square feet, number of bedrooms and bathrooms, and lot size impact its value. Larger homes and lot sizes are appraised for higher values.

Location: Your home’s proximity to grocery stores, public transportation, schools, and restaurants affects your appraisal value. In general, the higher the market value of your location, the higher your appraisal value.

Interior: The quality and condition of interior features — such as flooring, walls, windows, doors, appliances, countertops, fixtures, and plumbing — greatly affect your home’s appraised value. Appraisers look for high-end materials that homebuyers want, such as hardwood floors, stainless steel appliances, and granite or stone countertops.

Exterior: Your appraiser will assess the exterior of your home, specifically its foundation, roof, and siding. The materials your home is made of will impact your appraisal value. High-quality materials, such as stone or fiber-cement siding, increase your home’s value.

Features: Popular amenities, such as a garage, fireplace, view, yard, or patio increase your home’s value.

Updates: Appraisers review the workmanship, condition, and finishes of home improvements. Updates to the kitchen and bathrooms can have a significant impact on your home’s value. On the other hand, damages, defects, and wear and tear can negatively impact your appraisal estimate.

Understand what you can’t change about your home

There are several factors that can influence your home’s appraisal value that you can’t change. Some of these factors include:

• Your home’s location
• The age and construction of your home
• Home systems that are outdated and too costly to replace
• Your home’s layout and square footage
• Local housing market conditions

At the end of the day, you want your home appraisal to reflect your home’s value, whether you’re planning to sell your home, refinance, or tap into your home’s equity. There are things you can do to help your home stand out, so make sure you highlight your home’s top features.

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