How Home Improvements Affect Your Appraisal Value
Do Home Improvements Increase Your Home’s Appraisal Value?
If you’re planning to sell, refinance, or tap into your home equity, you may be wondering which home improvements will increase your appraisal value the most. While not all upgrades provide a dollar-for-dollar return, certain renovations can boost your home’s market value and positively impact your appraisal.
At IdaHome Appraisal, Inc., we’ve seen firsthand how strategic home improvements can increase property values. Let’s break down the renovations that make the biggest impact.
Which Home Improvements Add the Most Value?
Not all home upgrades are equal when it comes to influencing home appraisals. Here are the renovations that typically yield the highest return on investment (ROI):
- Kitchen Remodels
- ✅ Minor kitchen remodels (new countertops, cabinet refacing, upgraded appliances) yield 75-80% ROI
- ✅ High-end remodels (custom cabinetry, luxury finishes) may not always recoup full costs but can attract buyers
- Bathroom Upgrades
- ✅ Updated vanities, modern lighting, and fresh tile can yield 60-70% ROI
- ✅ Walk-in showers and dual sinks are highly desirable
- Curb Appeal Enhancements
- ✅ Landscaping, fresh exterior paint, and a new front door create a strong first impression
- ✅ A well-maintained exterior signals a well-kept home
- Energy-Efficient Upgrades
- ✅ New windows, insulation, and HVAC systems can reduce energy costs and increase appraisal value
- ✅ Solar panels can add value but vary by location and incentives
- Flooring Replacements
- ✅ Hardwood floors or luxury vinyl plank (LVP) increase a home’s appeal and may boost your appraised value
- ✅ Old carpets can decrease perceived home value
- Additional Living Space
- ✅ Adding a finished basement, attic conversion, or additional bedroom increases livable square footage and appraised value
- ✅ Garage conversions are hit-or-miss, depending on local market preferences
Which Home Improvements Have Little Impact on Appraisals?
Not all renovations lead to a higher home appraisal. Some updates are more personal in nature and don’t necessarily translate into increased market value:
- ❌ Swimming Pools – May deter some buyers due to maintenance costs
- ❌ Luxury Upgrades – High-end appliances and custom finishes may not significantly boost appraisal value
- ❌ Over-the-Top Landscaping – Can enhance curb appeal but doesn’t always add to appraisal value
How to Maximize the Impact of Home Improvements on an Appraisal
To ensure your home improvements positively influence your appraisal:
- ✔ Keep records of all renovations (receipts, permits, contractor invoices)
- ✔ Focus on universally appealing upgrades (neutral color schemes, energy efficiency, functional spaces)
- ✔ Ensure projects are professionally done (poor workmanship can hurt appraisal value)
Final Thoughts
Making smart home improvements can increase your home’s appraisal value, but not all renovations provide a strong return. If you’re preparing for an appraisal and want expert insight into how your improvements might impact your home’s value, consult with a professional real estate appraiser.
If you need a professional home appraisal in Boise, Garden City, Eagle, Nampa, Middleton, Caldwell, Horseshoe Bend, Idaho City, Donnelly, McCall, Star, Meridian, or Kuna, Idaho, contact IdaHome Appraisal, Inc. today!
📞 Contact us today for a home appraisal you can trust!
Meet the Author
Joshua L. Darrow is a seasoned Certified Residential Appraiser with 20 years of experience in the appraisal industry. He specializes in providing comprehensive residential appraisals for various purposes, including mortgage/lending for conventional and FHA-insured loans, estate appraisals for tax purposes, divorce appraisals, partition action appraisals, market value appraisals, pre-listing appraisals, for sale by owner appraisals, tax appeal appraisals, and measurement services. Known for his commitment to integrity, Joshua delivers non-biased, objective appraisal reports with the utmost professionalism and accuracy.