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What To Do To Add Value

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sarasue1010

Freshman Member
Joined
Feb 15, 2018
Professional Status
General Public
State
Indiana
Hi - We just finished construction on our new house. The appraisal came in significantly lower than the pre-construction appraisal and that is with us adding an additional pole barn garage. We are looking to do a few things that would improve the appraisal before we have to do our permanent financing. We are trying to decide if we should use some cash to make improvements or use cash to cover the difference in the appraisal. We have a full 1500 sq ft basement that we plan on finishing (it is already studded, insulated, and wired), one of the comps had a full finished basement and they deducted 22K from that value. Is that an average value for a finished basement? Walkout with open large family room, 1 bedroom, 1 full bathroom, 1 large storage room, and 1 storm shelter room. Also, we have another fully concrete room that we plan on installing a safe door on. Any idea if that would add any value to the house close to the cost of the door?

Second, since it is a new construction, the ground around the house at the time of the appraisal was mud and there has been no landscaping. There were no notes about this in the appraisal on how much that hurt the value. How much value comes from landscaping. I am also in the process of building a stone outdoor fireplace on a concrete pad that was not started at the time of the appraisal. Should this add any value?

Third, for our pole barn, it is a 30x50 with a 50x16 lean-to. They valued that at 18K. At the time of the appraisal we did not have the concrete poured in the floor of the barn. When we finish that, will that add any value.

Finally, we have an outdoor wood boiler that we use for heat and hot water during the winter. We have the backup system of a heat pump. They did not add any value for the wood boiler. The was a pricey investment for energy efficiency. Any experience out there in adding value to the appraisal for such a thing? The guy that came out was from the city and had never heard of such a thing and so valued it at nothing. They are becoming quite common in our area though.

Thanks in advance for your help!
 

AMF13

Elite Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
All these things will add value. Maybe not as much as they cost though.
Your questions need local answers. These things are hard or impossible to pin down.
It sounds like you will be at it for a while with the extra improvements.
So, maybe you would be better off to put in cash and get your perm financing nailed down.
Then you don't need to worry about that hanging over you, rates going up, or another appraisal.
Just my $2.
 

Riick

Elite Member
Joined
Aug 14, 2007
Professional Status
Certified Residential Appraiser
State
Delaware
Borrow the $$ while it's still cheap
  • Borrowing $250,000 - 30 year @ 4% = $1,193
  • Borrowing $250,000 - 30 year @ 5% = $1,342
 

Artemis Fowl

Senior Member
Joined
Mar 16, 2004
Professional Status
Certified Residential Appraiser
State
Michigan
If financing is not a make-or-break issue for you and you don't plan to move within the next 3 years: Do the things that YOU think add value to your enjoyment of your property.

Did the appraiser say why he gave the boiler no value? No value in the sales grid or no value at all?
 
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