One of most common questions I get asked as a real estate agent by a homeowners who is thinking about selling their home, is “What’s my home worth?” I will be happy to do a home evaluation for you by finding homes with similar features and determine the range of value your home is worth. Feel free to ask me to help you determine your home’s value. Additionally, three of the most common questions that are then asked include, I have a great view, doesn’t that make my home more valuable? I have a pool, doesn’t that increase my value and I am thinking about renovating my home, will that increase my value? Let’s talk about those three questions to give you a better idea about how these features add or neutralize the value of your home.
What is my view worth? Does it increase my home value?
The value of your view depends on the view itself. If you have a small view of the ocean from a two story window upstairs your view is nice, but it doesn’t provide additional value to your home. However, if you have a panoramic view of the ocean you will be able to add more value to your home. If you have a view of the Aviara Golf course from a distance, your value will not be as high as a home that sits directly on the 17th hole of the golf course and it is unobstructed by trees and other homes. This photograph with the golf course view adds tremendous home value. Especially since there are only a few homes in that neighborhood that sit on the golf course so they seem to sell for more more than homes in the neighborhood without a golf course view. An appraiser will actually determine the home value, at the time the home is being sold.
For the insistent who really need a number, Texas Christian University, Mauricio Rodriguez, PhD and C.F. Sirmans of Florida State University studied the topic and found that, at least for the housing market they examined, “a good view adds about 8% to the value of a single-family house.” (Rodriques/Sirmans: Quantifying the Value of a View in Single-Family Housing Markets)
Since the final determination of a home’s market value is decided by the appraiser, we went on a hunt for an appraiser’s opinion. Michael Fox, a New York State Certified Residential Appraiser with MF Appraisals in Westchester, conducted his own, informal study of the value of a golf course view. He analyzed 4 years’ worth of sales in a townhome development and found that the golf course view was worth 6 percent to 6.85 percent, depending on the year the home was sold. Buyers paid more for units with a view of the golf course.
Whether the view is of the city skyline, water, open space or a golf course, it is worth something. What’s lacking is a consensus on precisely how much it’s worth.
Will my pool add to my home value?
Oh, this one is popular. Thankfully, it’s easier to answer than questions about the worth of a view.
The National Association of Realtors’ National Center for Real Estate Research claims that “… an in-ground swimming pool adds about 8% percent to value” however, “an above ground pool adds no value.” The National Association of Homebuilders, found that homebuyers who wanted a pool were satisfied with having access to a community pool. This is a less costly choice, when you consider that paying thousands of dollars for a pool in your yard only adds 8% value, and it is a vanishing asset when you have to continue paying for monthly upkeep and safety protection.
Your home value comes down to location. The value of your pool depends on where the home your is located. Buyers in warmer regions put more value on a pool than in cooler climates. A pool adds more home value in Phoenix and Las Vegas. The National Association of Realtors study finds that Southwest homeowners with a pool can realize an 11 percent bump in value (unlike the eight percent for homeowners elsewhere). For any pool to be considered valuable it needs to be in good condition, otherwise, it can actually decrease the home value and buyers may reject the home due to the money they know will be required to upgrade or get rid of the pools.
Which renovations should I make to boost my home value?
Any renovations you make to your San Diego home will increase your home value on average about 64.3 cents on every dollar when you sell your home,” according to Remodeling Magazine’s 2017 Cost vs. Value Report.
- Replacing attic insulation – Sealing the attic floor to stop air leakage and adding fiberglass insulation to a thickness equal to R-30 insulation. This project pays for itself, returning 107.7 percent of the cost when the home sells.
- Front door replacement – Ditch the old door and replace it with a steel one. It will cost you about $1,400 (national average) and you’ll recoup 90.7 percent upon the sale of the home. (Any high quality front door will attract buyers who believe that the home has been cared for more with a new front door).
- Minor kitchen remodel – Replacing the cabinet and drawer fronts, adding new hardware; replacing appliances with energy-efficient models; installing new laminate countertops; adding a new sink and faucet; repainting trim, adding wall covering and replacing the flooring. This costs around $20,830 and the homeowner should recoup 80.2 percent on their home value at the time of sale. Of course that depends upon the economic climate at the time of sale.
Consumer Reports found that millennial homebuyers overwhelmingly want a “modern/updated kitchen” The report suggests that a $5,000 renovation of adding new appliances, countertops and flooring with fresh paint on the walls will realize a 3 to 7 percent increase in your home value.
Anything you do to the home that helps save on energy bills is a plus for buyers. This includes replacing old windows with high-efficiency versions, replacing utility-hogging appliances and the aforementioned beef-up of the home’s insulation. The Consumer Reports study also recommended replacing old windows with “Energy Star certified windows which can lower your home’s energy bills from 7 to 15 percent.”
Dr. Deena Stacer
Dr. Deena Stacer has a real estate license and a PHD in psychology. She combines her expertise in real estate and her understanding of psychological real estate strategies to help families have less stress and experience less hassle when they sell their home. If you would like to have me help you to determine your home value, feel free to contact me. If you have questions about this article or other real estate questions I am happy to get you answers, feel free to schedule a time to chat with Dr. Deena. Thinking about selling your home?
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Email Dr. Deena at [email protected] or call/text 858-229-8072.
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