So many details large, small and in between impact the value of your home. Some of your home’s value is personal and has to do with your daily enjoyment of living in a home you build to suit your needs and lifestyle. Most people realize that choosing to build a custom home will provide that day-to-day personal value. But what about the bottom-line? Many people do not realize that a custom home can hold a higher property value and be a sounder investment than other homes.
Property value is the estimated price a house could expect to be sold for assuming both the seller and the buyer have accurate information about the property and the market. Primarily two types of professionals do assessment of property value; real estate brokers and certified banking professionals. Real Estate Brokers can provide a “Broker Price Opinion – BPO” and a bank can provide an “Appraisal” determined by a certified professional that is authorized in the jurisdiction by a governing regulatory body.
Both a BPO and an Appraisal will determine the property value based on factors that include the value of similar properties and market trends in the area, the cost of needed repairs and the quality of the home. Custom homes are able to hold higher property values because they are newer and at the time of sale require little to no repair. Additionally, custom-built homes are at an advantage because they are high quality homes with the features and upgrades that raise the property value.
It is important when building a custom home to realize that not all features and upgrades have the same impact on the property value of the home. For example, while a deck outside is nice and does add some curb appeal, but it will not raise the property value as much as choosing to build a home with good quality insulation that has a higher resistance value or geothermal heat pumps and solar heating. While the insulation and other green improvements that increase the homes efficiency are not as visible to buyers or sellers it has a very strong impact on the homes property value. If you want to invest in adding to the exterior of your home while raising your property value stone or brick accents allow you to do so at a reasonable cost.
Interior areas that are seen and provide impact on property value in a positive way include upgrades and features that add to the comfort and enjoyment of the home. A luxurious master suite, and upgrades in the bathrooms and kitchen are things that can be built into your home that will provide you with that day-to-day pleasure and have significant effect on your property value. Building a custom home gives you the opportunity to select the upgrades and features that will hold a higher property value and allow you to choose how to craft it into your home.
Ready to start building your Memphis area custom home? MH Akers Custom Homes is the leader in providing quality custom home construction in Tennessee, Arkansas and Mississippi. Learn more today!
