House valuation is the assessment process where professionals determine your property’s value in the current real estate market. Many factors can affect the outcome of the appraisal of your home, such as location, size, age, etc.
The most crucial one that can increase the value of your home is its condition. Renovation and remodelling of your home can significantly impact its value on the market. Moreover, real estate investors consider renovations as the critical factors that significantly affect the valuation result.
This type of home valuation is in-depth; an appraiser will assess everything in your home and consider it for the final assessment result. Here are some things you should know regarding a house valuation after renovation and the value of your house on the market after remodelling.
Valuation and refinance after renovation
Finding the perfect time to do a home valuation may seem a bit confusing. Should you do it when everything is over? Should you do it in the process of renovating? Many homeowners who don’t know when to commission a home valuation ask these questions.
Refinancing goes hand in hand with renovation. This term implies replacing your current mortgage with one that has more benefits, such as lower interest rates. Additionally, people have been wondering about refinancing their properties and when is the best time to do it.
The refinance process implies that the bank will pay off the mortgage you are currently paying off, and you will get another loan that will be different from your mortgage plan. To apply for refinancing, you will need to deliver the same documents you had when you applied for your mortgage.
There are many reasons for deciding to take the step of refinancing. Some people want to pay lower interest rates, have a shorter payment term, etc. Many things can benefit someone if they decide to refinance.
Below, you will see the answers to all your burning questions regarding valuation and refinancing.
Should you get your house evaluated after a renovation?
Since renovations can increase the value of your home, you should do a valuation if you are planning on selling your property. The remodelling you make will significantly impact the value of your home, depending on the type of remodelling you decide to do.
Minor renovations may impact the value to some extent. However, complete renovations can give a whole new value to your home.
If you are planning on refinancing or taking a new mortgage, it might be best to do it before renovating. The renovations you make will impact the value of your property, thus making your mortgage payments higher each month.
However, mortgage refinancing can sometimes help you finance your renovations and achieve the goals you have for your home. This type of refinancing means the mortgage will be lower than the total value of your property. With this type of refinancing, you will pay lower interest rates and still be able to renovate your home.
When requesting refinancing, you will have to undergo the appraisal process. This process will help the lender ensure they do not give you too much money for your property. They wouldn’t want to provide more than you might need. However, it can sometimes be good to get a few more pounds than the total value of your home, and renovations can help with that.
The bank will send an official to conduct a refinance appraisal. Once the valuation process begins, the official will have to follow the protocols and standards that will determine the value of your home. You are responsible for paying for the appraisal. It can cost between £150 and £1,500 in the UK, depending on the location, size, and the house valuation type.
Cash-out refinancing is a refinancing that will give you 20% of the overall value of your property. That means you will receive 20% of your home’s value in cash to do with it as you wish. You can use this money to renovate your house further and increase its value.
After renovations, your home will increase in value, enabling you to receive a bigger mortgage. If you plan to get more out of your mortgage, you should do an appraisal after remodelling.
Valuations without refinancing are always a good idea. You will increase the value of your home by doing minor renovations while also paying the same mortgage.
We recommend getting a home valuation every year or two. That way, you will always know how much your home is worth, which can help you build equity, increase its value further, and build home insurance. You will have a more valuable home for the loan you have taken.
Can a house be evaluated while being renovated?
A professional appraiser considers everything inside and outside the house. While evaluating your home, they have a detailed look into everything inside the house, such as furniture, electronics, etc. Everything should be in place to help them determine your home’s value accurately.
That implies that appointing a valuation while renovating your home may not be the best idea.
When you are remodelling your house, things will get out of order and may appear messy. For example, imagine ripping out the floors and inviting someone over to tell you the value of your home.
Moreover, if you mention that you plan to renovate and precisely explain what the renovation will include, you should still do the valuation after the renovation is complete. The appraiser may or may not believe your plans. They will evaluate what they see right there and then.
While preparing for the assessment process, ensure everything is in order and clean. The appraiser won’t have trouble accessing every nook and cranny to get a complete valuation of your home.
Overall, appointing a valuation during the remodelling process is not a good idea because it will negatively impact the value of your home. We suggest waiting until the end of the renovation process to assess your home’s value.
Does home improvement increase value?
Not all home improvements affect the value of your home in a positive way. Some remodellings can decrease the value of your home. Although it is a good idea to use renovations to add to your home’s value, you need to be aware of the things that can make it worth less.
Things that have a personal value to you may negatively impact your home’s overall value. The more personal additions and renovations to your home, the less likely the house will increase in value.
For example, you may enjoy having different wall colours in one room, which may fit your lifestyle, but this choice can negatively impact the valuation results.
On the other hand, a pool can significantly increase your home’s value. If you want to enjoy some swimming on a hot day and decide to build a pool, you will do your home’s value a service.
Converting your garage into a functional room is another brilliant idea if you want to increase your home’s value. It will add to your home’s square footage, thus making it worth significantly more.
However, it might devalue your home because you would no longer have a garage. That might turn away many potential buyers if you ever decide to sell. It can be a double-edged sword. Still, an extra bedroom would unquestionably increase your home’s value.
Many renovations will undoubtedly increase the value of your home. Here are some of them.
What adds the most value when renovating a house?
Renovations are an excellent way to add to your house’s value. Some can have a more significant impact on the final result than others.
Below are some of the things that increase the value of your home the most. Renovating those parts first will help you boost property value faster.
Kitchen remodelling
Kitchen remodelling is one of the best steps to take on your renovation journey. Upgrading the kitchen with modern solutions can significantly impact the value of your home. The kitchen should always be clean and practical; consider that before renovating.
To successfully remodel your kitchen, you should start small. Replace your faucets and lights first before moving to other things. After that, you can add new hardware while ensuring that every item complements one another. Modern hardware with many new features will significantly add to your home’s value.
Bathroom renovations
Another room that needs special attention when renovating is the bathroom. Bathrooms should look and feel comfortable. When remodelling your bathroom, take into consideration the size of the room. If it is small, you might not want to add dark elements since it can make the room appear smaller.
New and clean bathroom furniture will surely bring more value to your home. Ensuring the colours match according to the colour theory is another essential thing to keep in mind. Moreover, you should ensure that the bathroom is as minimalistic as possible, with no unnecessary fixtures and decorations.
A new deck
Adding a deck to your home if you don’t already have one is an excellent way to make your house more valuable in the eyes of appraisers. Decks serve the purpose of enjoying time outside, especially if you don’t have a backyard. Ensure that the deck is stable, secure, and doesn’t pose any danger.
Decks should compliment your exterior. Adding a deck and painting it a colour that doesn’t match the exterior may not be the best move. A deck should appear as part of the whole, not as a whole itself. These additions should not stand out from the house’s exterior.
Windows, doors, and the roof
Any outdoor change is a good change. Removing your home’s imperfections on the outside and making them better is an excellent way to increase its value. The exterior is as important as the interior. Be sure to focus on it as much as you would on the interior.
When it comes to the exterior, windows are another thing that might need improving. Windows and doors are some of the first things people notice when looking at a particular property. Moreover, together with the roof, they can increase energy efficiency.
Keeping the house isolated with windows and a high-quality roof will contribute to your home’s overall health, thus increasing its value. Moreover, new windows will make your home look more modern. Therefore, investing in good windows, roofing, and doors can positively impact your house’s value.
Energy efficiency
Regarding energy efficiency, you can always work on your electric systems. Nowadays, it is essential that we don’t spend too much energy and that we keep our planet as healthy as possible. Using energy-efficient elements can surely add to your home’s value.
Everyone wants to live in an environmentally safe and ecologically-aware house, and you can include that in your next remodelling plan to increase your home’s value.
Products such as LED lights can be an excellent way to start. The ultimate thing regarding energy efficiency would be to use solar energy as the primary energy source. Solar panels will significantly impact your home’s value.
Additionally, occasional refreshments can preserve the value of your home. Repainting your house regularly may make it appear fresh, clean, and healthy. Regular maintenance will also impact the value of your home.
Conclusion
Renovating and remodelling your home is a brilliant way to add to its value. Appraisals can help you determine the value of your home, which can come in handy if you want to sell your property or enjoy more benefits regarding your mortgage.
Professionals and officials usually do these valuations. The process might be a bit complicated since it will be an in-depth valuation of the home’s possessions.
Some people planning on renovating their homes may question the whole system. We have explained in detail the process of evaluating a house and the best time to do so.
We have mentioned some things that can negatively and positively impact the appraisal. Consider that information to decide if you will commission a house valuation after renovation or before any remodelling.