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For your home renovation, there are important things that you need to know. Homeowners keep on remodeling their homes any time they please. It does not matter whether you are redoing your kitchen, bathroom or setting up a new pool. The most important thing you should do is to keep track of any value that is added through the renovations. This may vary largely due to various factors.



To ensure that your remodeling process maximizes your appraisal, there are important tips that you need to know. This will make your home renovation process a success!

Home Renovation Assessment

What you need to know! The cost is not equivalent to the value – as a homeowner, you should always remember that appraisers will not merely add the renovation cost to a home value. On the contrary, appraisers seek to determine how much buyers are ready to pay for certain renovations in a given market place. This in most cases changes largely depending on where the home is located.


If you are considering renovations for your home, it is important to conduct a research on cost versus the value data through reliable sources. You will realize that, a number of the common renovations giving high returns on the investment are mid range kitchen remodels, new front entrance doors and remodels on bathrooms.
The substitution principle- it is important to remember the substitution principle. The assessment of renovations is based on the substitution principle. It states that those seeking to buy homes would not incur any extra costs for a special feature than the renovation cost of a similar property. Take an example where a certain home X and home Y are similar, except that home X has a remodeled bathroom at a cost CX. Let’s make an assumption that a similar bathroom in a similar house would cost half this cost. Appraisers will apply the substitution principle saying that the owner to home X will not be in a position to get back the extra cost incurred in the remodeling of the bathroom.



Prospective buyers desiring to have a home with a remodeled bathroom would merely buy home Y and renovate the bathroom on their own. This way, they will save up to 50% the cost incurred in home X. Most importantly, appraisers will also take into account the value buyers could get in not having to go through the challenging task of doing the renovations on their own.

Conclusion

Getting an appraisal for your renovation is most inevitable if you want to make a real success of everything you are doing to your home. Whether you are a homeowner or are looking for a new home, it is important that you take all these factors into consideration. Conduct more research to see what you need to do in your assessment.

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