Unlocking Property Value: A Closer Look at Tulsa Appraisal Services
As property valuation professionals, we at Measured Home Services, understand the importance of giving homeowners insights into their property's true value.
In this comprehensive guide, we'll discuss the most impactful home upgrades, delve into the concept of price per square foot, and explain how house square footage is measured according to industry standards.
Our goal is to help homeowners in Tulsa and beyond make informed decisions and maximize the potential of their real estate investments.
Which Upgrades Bring the Most Value to My Home?
As a leading provider of real estate appraisal services, Measured Home Services is frequently asked about the most beneficial home upgrades that can boost property value.
The response, however, isn't as straightforward as it may seem. The reason being, property appraisals are as much art as they are a science and the market environment plays a pivotal role in determining the value of specific home improvements.
The value-enhancing potential of upgrades can largely depend on what is standard and expected by buyers within your specific market area.
For instance, installing a high end swimming pool may fetch a significant return on investment in a high priced neighborhood but might fail to impress in a more traditional market area where such amenities aren't the norm.
In other words, while an upgrade might be seen as a luxury in one market, it might be considered an over-improvement in another.
As a property valuation company, we consider the principle of substitution, which asserts that buyers will not pay more for features they can find in other properties at a lower cost.
So, what upgrades are worth the investment?
Many homeowners and market participants may agree that kitchen and bathroom renovations yield the highest return on investment, however, it is crucial to remember that every real estate market is distinct. You should always consider the prevailing trends in your area and what is commonplace in similar properties when planning your home improvements. There is no single list to determine which upgrades will increase value.
Consider the following home improvements, which may be considered by market participants as value-enhancing potential in some markets:
Kitchen Remodel: A kitchen remodel is often seen as the gold standard of home upgrades by homeowners. A tastefully renovated kitchen can increase your home's appeal by offering more space, functionality, and modern aesthetics.
Bathroom Remodel: Similarly, remodeling your bathroom can significantly enhance the appeal of your property. An updated bathroom can transform the overall look and feel of your home, making it more attractive to potential buyers.
New Windows: New windows may improve the energy efficiency of your home, reduce noise pollution and increase curb appeal.
New Siding: New siding can give your home a fresh, attractive appearance and shield it from weather elements.
Energy-Efficient Upgrades: Improvements such as new insulation, energy-efficient appliances, and smart thermostats can decrease your energy bills and make your home more appealing to eco-conscious buyers.
These are just a few examples of home improvements which may be appealing to potential buyers.
When deciding on the right upgrades, it's important to consider your budget, the unique characteristics of your home, and the most in-demand features in your specific market.
Consulting with a real estate appraiser or a property appraisal expert can also provide you with a professional perspective on which upgrades are most likely to offer the best return on your investment. It is important to note that these upgrades may be considered in the overall quality and condition of the home in the context of an appraisal. It is not likely for an appraisal to identify a specific value for each upgrade noted.
At Measured Home Services, our property appraisers can offer you this critical insight, based on their extensive knowledge and experience within the industry.
Understanding Price per Square Foot
Price per square foot is a key metric used by buyers, sellers and real estate agents to provide a baseline for property comparison.
However, while it can be useful as an initial point of reference, it's important to note that it can sometimes be misleading.
In essence, this figure is calculated by dividing the price of the property by its total square footage. The price per square foot method does not give consideration to quality, condition, location, lot size, bath count, garage count and other features/amenities such as pools, shops, etc.
Although intuitively one might assume that a higher square footage directly corresponds to a higher property value, this isn't always the case.
Several other critical factors play a significant role in determining the overall value of a property, and these can go beyond mere size measurements.
Some of the factors that can influence the overall value of a property, regardless of its square footage, include:
Quality: High-quality construction materials and finishes can boost the value of a property.
Condition: The physical condition of the property, including its structure, roofing and major components can greatly influence its value. Properties in better condition generally command higher prices.
Lot Size: While the square footage of the actual building is important, the size of the entire property, including outdoor spaces, can also impact its value. This is specifically true regarding rural properties with larger tracts of land.
In the context of Oklahoma, there are additional factors to consider when evaluating property value. Specifically, the lifespan of a home appraisal can vary.
In general, an appraisal is considered valid for about 90 days. However, depending on the type of loan you're securing and the current state of the real estate market, this timeframe may differ.
If the real estate market is experiencing high volatility, lenders might request more frequent appraisals to accurately assess the property's value in a rapidly changing market.
Moreover, any significant modifications to your home, such as major renovations or the addition of new structures like a finished basement, may necessitate a fresh appraisal.
This is because such changes can drastically impact the value of your home, making previous appraisals outdated and inaccurate.
Therefore, if you're unsure about how long your home appraisal remains valid, it is always wise to check with your lender who ordered the evaluation.
They can provide specific information tailored to your circumstances and help you understand how your appraisal may be used and the specific situations for which it may be valid.
How Is House Square Footage Measured?
The square footage of a house is a crucial factor when determining its market value.
Until April 2022, there was no nationwide standard for measuring homes, leading to discrepancies and confusion in some cases.
However, Fannie Mae's decision in 2022 requiring their appraisals to use the American National Standards Institute (ANSI) guidelines has relatively standardized this process.
As a reliable appraisal services provider, we at Measured Home Services strictly adhere to these ANSI guidelines to provide you with an accurate and consistent assessment of your home's square footage.
But what does this entail? Here are the steps we follow to calculate your property's square footage, along with additional information that shapes our appraisal process:
Observe the home's floor plan: The home's floor plan offers a clear indication to its use and functionality.
Measure the outside walls of the home: Utilizing the ANSI guidelines, we measure the length of each exterior wall of the home. This allows us to calculate the gross living area (GLA), encompassing all heated and cooled living space in the home, including bedrooms, bathrooms, kitchens, living rooms, closets and hallways. Two story homes require some measurements be obtained from inside the home. ANSI requires the appraiser to include the thickness of the exterior walls in the total square footage (GLA).
Totaling the square footage (GLA): By adding the calculated square footage using exterior wall measurements, we arrive at the total square footage of the home.
Assess non-living areas: ANSI guidelines specify that areas like unfinished basements, attics, and garages should not be included in the finished square footage (GLA). However, these areas may be calculated separately and included in the unfinished square footage as a reference for the reader of the report.
Record conditions and features: We document the size and condition of the home as well as any special features. Unusual features, such as finished basements or shops, are noteworthy because they can increase the home's value.
Once we have obtained the square footage (GLA), we use this vital figure to estimate the home's value. The square footage is a major factor in this evaluation, but it's not the only one.
We also take into account other elements such as location, quality, condition, and the amenities it offers such as pools, shops, etc.
In conclusion, measuring a home's square footage is a process that requires a systematic approach and careful attention to levels of finish.
By following the ANSI guidelines, we ensure that our clients receive a comprehensive and accurate valuation of their property.
Conclusion
Understanding the various factors affecting your home's value is crucial, whether you're planning to sell your property, refinance your mortgage, or simply want to invest in worthwhile home improvements.
By considering your market area, focusing on impactful upgrades, understanding the role of square footage, and considering the lifespan of an appraisal, you can make informed decisions that enhance your home's value.
At Measured Home Services, we're committed to providing comprehensive, accurate, and reliable appraisal services.
Our mission is to empower homeowners with the insights needed to unlock the true potential of their properties.
