How Does An Appraiser Value a Home With $100,000 of Recent Upgrades?

It’s an age-old question - how much is my home upgrade worth? When a homeowner upgrades a kitchen, bathroom, or some other part of their home, they want to know what that upgrade is worth when it comes to the sale value of the home.

Did it increase the home’s value by the same amount they spent? More? That’s the question we’re looking at today…

Question from Realtor: “I have a home owner who was appraised last year at $330,000 for a 1,669 square foot home, and since then put in $100,000 of upgrades. Will an appraiser give value for these upgrades?”


As an appraiser, we would consider all of the upgrades completed.

Typically $100,000 is well above the amount of upgrades to a 1,669 square foot home - but depending on the area it is located in, could bring a return similar or even above what was spent.

This is true in areas like south Scottsdale, Arcadia etc. where homes are often purchased in the $300K range for 2,000 or less sf and after remodel often sell in the $500K range.

However, if this home is in an area where the high end of 1,500 to 2,000 square foot homes are selling in the $350K to $400K range they may have spent more than would have been advisable and the return on investment would be far less.

In addition, if the upgrades were to items that were already contributing value (i.e. replacing good quality hardwood floors with Travertine, replacing kitchen counter tops just to change colors etc.) the return could also be less as the value of the original items would be considered in the starting point.

For instance if a home is valued at $200,000 and is in good condition with little deferred maintenance, and a second home that is identical in size and design but has been neglected and needs all new flooring, kitchen etc. and is valued at $150,000 and both receive a remodel including replacing the kitchen cabinetry, all new flooring, remodeling the bathrooms etc. both would likely sell for the same amount after the remodeling - but the home that the original cabinetry, flooring etc. did not need replacing would realize a lower return on investment.


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