Iam very confused right now .I want to refinance my condo is better and much more upgraded than the other condos in my condominium complex.However some sellers have happened to sell it for lesser prices and got them sold.
Will upgrades be counted when the property is appriased during refiancing?.Also I have very little equity in the house.since i got it recently
2006-12-18 14:50:08 · 6 answers · asked by ashwiniak2 1 in Business & Finance ➔ Renting & Real Estate
Don't sweat it. Most lenders know what you need your property appraised for (keep in mind they're sales people who need your business) and they will let the appraier know what number to shoot for. Upgrades definitely help. What also helps is to look at other comparable properties, not just your complex
2006-12-18 14:54:35 · answer #1 · answered by KillerKat 3 · 0⤊ 0⤋
The value of a property is inherent in the values of the surrounding properties. Conformity is an issue. If all of the condos in your complex are dumps, and you put granite counter-tops and upgrade as much as possible, you will get a small return. This is due to the principle of substitution. In other words, if I were shopping for a condo, and was fully informed, would i pick the upgraded condo in a junky complex, or an upgraded one in a nice complex. The smart buyer would pick the one in the better complex.
Also, your upgrades will be noted, but again, (and this is making an assumption from what u said that the Condo's around yours are not as well up-kept), upgrades only affect value when someone is willing to pay more for them.
Also, you should note that if you are remodeling the kitchen, bathroom, etc... that there was value in what you were removing, and that what you are putting in new to the condo has a value minus the value that was already there.
Example: You have a kitchen, which has been maintained to an average condition. The value of the kitchen is still $10,000. You do a complete remodel of the kitchen and it costs you $15,000. The value of your kitchen did not go up by $15,000, but most likely by $5,000, which is the difference between the depreciated amount and that of the replacement costs.
2006-12-19 11:27:38 · answer #2 · answered by Qyllix 5 · 0⤊ 0⤋
Improvements may not improve the value. It unlikely it is even worth what you paid for it in todays market. Don't refinance right now. Appraisers go by recent sales. If prices are down then the values are too. Improvements won't do much good.
2006-12-18 22:55:41 · answer #3 · answered by sm4125 3 · 0⤊ 0⤋
Improvements will likely increase your value so make sure your realtor knows the cost of your renos.
Important renovations that increase value are bathroom tiles, fixtures, kitchen cabinets, fixtures, and appliances. Flooring is next. If you replaced the carpet, ripped the old one and placed tiles, or laminate, it will increase your condo value a l o t.
2006-12-18 23:01:03 · answer #4 · answered by QuiteNewHere 7 · 0⤊ 0⤋
the market value takes into consideration several factors.... mostly the type of condo, subdivisions, etc.... upgrades are just a small part.
you might still be able to get your refinanced loan with or without the upgrades.
2006-12-18 22:59:31 · answer #5 · answered by Benfica08 2 · 0⤊ 0⤋
Appraisers don't care about upgrades. Their only concern is sales of "comps" (comparable units). That's the reason you should NEVER own the nicest house on the block !!!
2006-12-18 22:58:48 · answer #6 · answered by Bill P 5 · 0⤊ 0⤋