Boosting Appraisal Value (in Chicago)

[David C.]

Hi, advice please...I'm looking to cash-out refinance. In Chicago, what elements of a property could help increase value in the appraisal? 

Property built in 2001, things looking bit tired or starting to need repairs. Nothing major though (yet). Thinking if any replacements/upgrades to these will help:

HVAC to replace 18 year system.?
Original ‘builders grade’ bathroom.?
Original ‘builders grade’ kitchen.?
Split block sealant (about 9 years)
Windows and exterior doors (originals)
Roof (original)
No backsplash in kitchen
Over garage deck.

Can any of these affect appraisal significantly or do appraisers just stick to basics and essential components that make up the house?

Any other simple hacks to nudge an appraisal up for refinancing?

Thanks!!

[Patrick Britton]

(BACKGROUND:  all my properties are in the southside)

I've had to deal with 7 different appraisers over the past 2 years and 5 of them should lose their license.  I've found spelling mistakes in every single report i've ever been given which tells me education and/or attention to detail is sorely lacking, both of which are required for an accurate value to be determined.  It's been so bad I've considered leaving Chicago.  Considering no fewer than 4 of these appraisers told me they were real estate agents who quit in 2009 tells me enough.   

Appraisers do NOT stick to basics and essential components.  They are more like first time home buyers: easily distracted by shiny objects and pretty things.  But if you know this, you can certainly take advantage...

@David C.  i would try to make the kitchen, entryway, bathrooms and ceilings as decorative and new-looking as possible.  And crank up that curb appeal to a ridiculous level.  In exchange, forego replacing items that are critically important to any true homeowner, like the roof or furnace, and focus on make-up.  

One of the biggest factors is the condition rating.  The difference between C3 and C4, for example, is $15,000 while the difference between garage and no garage is only $2,000.  Worst of all, the condition rating is 100% subjective.  Whereas the difference between 4 bedrooms vs. 5 bedrooms is $5,000.  Adding a half bath add $3,000, a full adds $6,000.  Replacing the roof adds no value as far as an appraiser is concerned.  But having quartz counter-top and tile backsplash with elaborate crown molding, wainscoting and exposed (but useless) beams and ultra shiny new appliances will make a huge difference.  

I think staging could make a bigger impact with an appraiser than with a potential buyer.  Considering it could make the difference between C4 and C3, that's a $15,000 return for the cost of $1,500 - $3,000.  

As well, if you can increase the gross living area, the better, EXCEPT the difference in square footage only matters if the comps differ by 200 SF, and then it's only $15/SF!!!!   So best to check your math and likely comps a few times to ensure it's worthwhile.  I'm looking at an appraisal a few months old right now and a 1200 SF property is being compared with one that's 800 SF.  The difference/adjustment is $6,000.  So, the subject is 50% larger, yet commands only $6k more in value?  And somehow these people remain employed.  Also, bedroom sizes clearly don't matter either.  

In short, as counter-intuitive as it may seem, just do all the superficial stuff that'll impress these bozos: paint, countertops, appliances, fixtures, hardware, staging, fencing, landscaping, etc.  If it's cold, crank up the heat, if it's hot and humid, crank up the A/C.  

I hope this helps.  Best of luck