A local appraiser has this to say about our market. " Looks like the Chapel Hill/Carrboro area is doing well. Values continue to climb and foreclosures are almost non-existent. The same cannot be said for Durham. They have a lot of foreclosures and I am worried it will affect the value of all homes very soon."
When I asked about remodeling and how value is determined on the quality of workmanship and materials, these were the main two points I came away with..
You will always get more value if there is something to use as a comparable. For instance, if you add an outdoor kitchen an appraiser will need to use a nearby outdoor kitchen that is not quite as nice and one that is of higher quality. This is more important than ever with underwriters (the gals and guys that actually give the ok for the loan) who are protecting their company and their jobs. So, let's say you have your brother the sculptor include the meteor that dropped in your backyard last year into your outdoor oven, it is going to be pretty tough to assign value to it.
Which brings us to the second point. Building or remodeling for the most return on your money is a tricky thing. First of all, you want to enjoy the effort and money you put into your home, so all work will be reflective of your taste and your lifestyle. However, you will always want to be aware of resale. Even if you think you will NEVER leave your home, SOMEONE will have to sell it sometime. So making your home too unique will either create a white elephant or a terrific value for someone else, since the $45,000 stove imported from France just will not get appraised for anywhere near its real value. On the other hand, building something to appeal to the masses is just as bad (in my humble opinion). There are scores of big boxes with no soul on the market. Almost every buyer I have had in the last few years is looking for something 'special'. So give it to them; etched glass in a window, niches built into the walls, built-in bookshelves, or universal design features that are attractive to both older adults and young families who love being able to get the stroller through the doorways!
