Added value for ceramic tile?

[AngelaWi11iams]

How can one estimate what the added value is on improvements? We have a recent appraisal for refinancing and have asked our appraiser, but no response...

Have been watching the flipping shows religiously and noticed they often post statements such as 'New floors: $xxxx, Added Value $XXXX+++".

We've recently added custom ceramic floors (in place of $1/ sq ft berber), landscaping, a new roof, etc. and need to figure out how much to increase our home owners' insurance to cover the upgrades...

We also plan additional enhancements and want to know which improvements add more value. For example, hard wood vs. ceramic, covered patio, etc.

Thanks in advance for any info you can share!
Angela

 

[xmrdfghap]

How can one estimate what the added value is on improvements? We have a recent appraisal for refinancing and have asked our appraiser, but no response...

Sounds like a wise appraiser........you can estimate the value in any of three methods. First you can estimate value by cost. Second you can estimate by what other people will pay for that feature. Third you can estimate it by the income it will generate. Natually, the most reliable, and the most difficult to discern is what people will pay for that feature. This means finding similar properties, that have sold, where you can isolate the differences. If you can find a house with the original Berber and an identical house where the only change is the addition of tile, and they both sold recently, you can come close to estimating the value impact of the tile.

Have been watching the flipping shows religiously and noticed they often post statements such as 'New floors: $xxxx, Added Value $XXXX+++".

You do undestand that such shows are for entertainment? They have as much real life credibility that ER does to medicine or that CSI Miami does to solving criminal cases.

We've recently added custom ceramic floors (in place of $1/ sq ft berber), landscaping, a new roof, etc. and need to figure out how much to increase our home owners' insurance to cover the upgrades...

You should increase it according to the cost of your house, not in accordance with the market value. If your place burns to the ground, you will want to replace it, new......not "as depreciated."

We also plan additional enhancements and want to know which improvements add more value. For example, hard wood vs. ceramic, covered patio, etc.

I like a riding stable, a dirt motocross track, and a bass pond.

Seriously, your market needs to tell you that. My preferences and my market preferences don't mean squat in your neighborhood.

Thanks in advance for any info you can share!
Angela

You are welcome.......Always glad to help mislead............

 

[BenLuby]

Angela, you are looking for the new insured value? Then call your insurance agent and make him earn his lunch money. Make certain that you include digital photos of the property improvements as well.
Market value and insured value are not the same thing, and the appraiser should have informed you that, for what you were seeking, your insurance agent is the person with the answers on that. Good luck, and let us know what your insurance agent says.

 

[AngelaWi11iams]

Thanks for your input - I know those flipping shows are just for entertainment - there is no subsitute for professional real estate appraisers and brokers. Besides entertaining, these shows help the rest of us to see what trends are desirable currently.

Mostly I just want to satisfy my own curiosity and to try to get the most bang for the buck when making decisions. Your input has given me points to consider and research when planning projects.

Just an FYI - The insurance agent and I went through the entire house item by item and were able to upgrade the insurance to the amount we need. What an eye-opener! We actually increased the insurance by $40,000 - the agent had plain-jane basics listed for the structure of our home. We would never have been able to replace our home going by what they had listed.

 

[James Andreas]

Try these links

http://www.remodeling.hw.net/content/CvsV/CostvsValue.asp?articleID=211765&sectionID=173

http://www.realtor.org/press_room/news_releases/2005/costvsvalue2005.html

http://www.realtor.org/RMODaily.nsf/pages/News2005122102?OpenDocument

Remodeling On-Line... there are also other numbers at Realtor.org.

Keep in mind the source. An appraiser's estimates are based upon market reaction, not cost, and vary by location and market trends.

Several years ago a kitchen remodel may have netted the seller 100% return (probably less than 100% on the remodel, but partially disguised by overall appreciation), and may net close to -0- now, and simply be needed to sell your home (relative to 2005 prices).

An appraiser could accept a consulting assignment from you to estimate or "what if" values correlated to planned upgrades - probably well-worth the few $$ you'll receive for professional advice.

 

[AngelaWi11iams]

Thank you!