The Appraisal Institute, the nation’s largest professional association of real estate appraisers, today encouraged homeowners to exercise good judgment when deciding which home improvement projects to take on, saying that not all renovations enhance property values.

“It’s very important that renovations stay within, but not exceed, community norms,” said Appraisal Institute President Ken P. Wilson, MAI, SRA. “If they don’t match what’s standard in a community, owners could have difficulty recouping their investment when selling the property.”

According to Remodeling magazine’s most recent Cost vs. Value report, some of the projects with the highest expected return on investment are entry door replacement (steel), deck addition (wood), garage door replacement, attic bedroom and minor kitchen remodel. Other renovations with high expected pay-offs include window replacement (wood and vinyl), siding replacement (vinyl) and basement remodel.

Wilson advised homeowners that it may be best to hold off on major renovations if a homeowner isn’t sure how long they will be in the home. The longer a homeowner stays in a property, the greater the opportunity for a return on investment, he said.

“Consumers should be aware that cost does not necessarily equal value,” he added.

For an unbiased analysis of what their home would be worth both before and after an improvement project, a homeowner can work with a professional real estate appraiser – such as a Designated member of the Appraisal Institute – to conduct a feasibility study.

During a feasibility study, the appraiser will analyze the homeowner’s property, weigh the cost of rehabilitation and provide an estimate of the property's value before and after the improvement.

Some green and energy-efficient renovations, such as adding Energy Star appliances and extra insulation, are likely to pay the homeowner back in lowered utility bills relatively quickly. Lower utility costs also are a draw for potential homebuyers. When appraising a home, the appraiser evaluates local supply and demand for green and energy-efficient properties and features.

The Appraisal Institute offers a free, informative brochuretitled “Remodeling & Rehabbing,” which provides consumers with valuable advice on home remodeling.

The Appraisal Institute, the nation’s largest professional association of real estate appraisers, today advised homeowners to properly maintain their landscaping, which can significantly affect property values.

“If a landscaping change is positive, it can often enhance price and reduce a home’s time on the market,” said Appraisal Institute President Richard L. Borges II, MAI, SRA. “But if the change is negative, it can lower the price and lengthen the time a home remains for sale.”

Curb appeal is essential when selling a home, Borges said, noting it’s the homeowner’s opportunity to make a great first impression. A home with lackluster landscaping or an exterior in desperate need of a fresh coat of paint will likely be unappealing to prospective buyers and ultimately could affect the home’s potential resale value, he said.

Landscaping is typically associated with lawns, trees, bushes and flowers. But other items also can be considered part of landscaping, such as fire pits, decks, patios, waterfalls, swimming pools and outdoor lighting … all of which could add to the value of the home.

Borges added that homeowners should trim growth regularly, replant approximately every 5 to 10 years depending on growth and not “overwhelm” the house. He also advised that homeowners check out what their neighbors have done and keep landscaping maintenance and improvements on par with neighborhood norms.

According to the International Association of Certified Home Inspectors, trees that are too close to buildings may be fire hazards. Additionally, larger tree root systems that extend underneath a house can cause foundation uplift and can leech water from the soil beneath foundations, causing the structures to settle and sink unevenly.

According to a recent study conducted by Lawn & Landscape magazine, about two-thirds of homeowners say they’ll get less than 60 percent of their landscaping investment back when they sell the home.

“Landscaping improvements could make an impact on resale value, and homeowners need to consider how long they’ll be in the home and whether to make short-term updates or plan for the long haul,” Borges said.

Borges said homeowners should ask themselves the following questions when it comes to the quality of their home’s green space:

• Is the landscaping attractive enough to make the prospective buyer walk through the front door? Keep the design contemporary and in line with comparable properties in the area.
• Could the landscaping provide cost savings? Landscaping that requires little or no water to maintain could be desirable depending on the geographic area.
• Is the landscaping energy-efficient for the home overall? For example, it’s a good idea to plant trees in a place where they block the sun in locations with year-round hot climates.
• Are the trees planted at a safe distance from the home and are they healthy and well maintained? Weak, old or damaged trees planted too close to a home or building could pose dangers to the home’s structure and will need to be removed. Consumers should also be sure that mulching or beds don’t get too close to wood around foundations to avoid wood-destroying organisms.