One part of our recent refinance that we haven’t yet explored in depth was the home appraisal required for the process. It was both exciting and nerve-wracking. Exciting because, for the first time since we bought the house in 2006, we would see exactly how much value our improvements added. Nerve-wracking because the housing market has been unpredictable lately, and you never know what an appraiser will conclude.
The appraisal was also a chance to reflect on the projects we completed over the last three years. The appraiser asked what we updated and seemed surprised by the length of our list. As we recited everything, we realized we should document it. Below is a consolidated list of all the changes we made (each item originally linked to more details and photos):
- Removed several trees in the front yard to create a grassy lawn
- Paved a previously gravel driveway
- Replaced an uneven, cracking slate patio with cobblestone pavers
- Installed new energy-efficient windows throughout the house
- Laid new hardwood floors in half the house, replacing linoleum
- Refinished the existing hardwood floors in the other half of the home
- Renovated the laundry area and added new appliances
- Widened three doorways to improve flow between rooms
- Closed one doorway to create a third bedroom
- Converted the formal living room to include a dining area with a pendant light and shelving
- Added built-in closets flanking the bed in the master bedroom
- Installed crown molding in the living room and all three bedrooms
- Added a radon mitigation system
- Replaced or added new light fixtures throughout the interior and exterior
- Completely renovated the kitchen with new cabinets, countertops, and appliances (including a dishwasher)
We provided a rough estimate of what we spent on the renovations, fully expecting that a sluggish market might prevent us from recouping the full amount in appraised value. To our pleasant surprise, the appraisal came back at essentially the same amount above our purchase price as we had estimated. The appraiser even commented that the value may have been higher, but he couldn’t find comparable sales in the neighborhood to support a larger increase on paper. Seeing our home’s value move upward — and matching the cost of our improvements despite a weak market — was a huge relief and made all the hard work feel worthwhile.
Have you had any memorable appraisal experiences lately, or are you avoiding appraisals until the market stabilizes? We’d love to hear what others have encountered.