Deciding what types of renovations positively impact property values may not be as evident as it seems, according to the Appraisal Institute.
If home improvements do not match what is standard in a community, said Appraisal Institute president Richard Borges, “they’ll be considered excessive,” so homeowners should be advised that renovation “cost does not necessarily equal value.”
As the housing market recovers and property prices continue to increase in many states, more homeowners are tempted to further improve their home values through renovations. The best criteria, he said, is to avoid home improvement projects significantly
Another factor is time, Borges advised, since “the longer a homeowner stays in a property, the greater the opportunity for a return on investment.”
Among the home improvements that offer the best return on investment the institute lists entry and garage door replacement, attic bedroom or deck addition, minor kitchen and basement remodel, and window replacement.
Some green and energy-efficient renovations, such as adding extra insulation also matter because as a rule, professional real estate appraisers evaluate local supply and demand for green and energy-efficient properties.
