How to Increase (and Decrease) Your Home Price

What does every mortgage applicant wish they knew? How to make sure their property went up in value after the purchase was finalized.

Well, there’s no predicting where home prices will go as far as general market trends are concerned. Plenty of factors, from mortgage rates to subprime lending, have shown us that much.

But here are 10 features that the average homeowner can know will add value to your home price… and another 10 factors that could reduce home prices.

INCREASE

1. An updated kitchen
2. Modern bathrooms
3. A well-appointed master suite
4. Natural materials
5. Curb appeal
6. A light, airy spacious feel
7. Good windows
8. Landscaping
9. Lots of storage
10. Basement

DECREASE

1. A pool
2. No garage or small garage
3. Garbled floor plan
4. Outmoded appliances or systems
5. Stale or overly personal decor
6. A bad roof
7. Bad location
8. Poor maintenance
9. Environmental hazards
10. A long list of needed home improvements

Let’s start things off with the list of good things a home mortgage holder can do as far as bumping up their property values…

1. An updated kitchen. “Kitchens are critical,” says Robert Irwin, author of “Home Buyer’s Checklist.” “Today, people like a big kitchen with a lot of workspace.” They look for solid counters and high-quality flooring, such as wood, laminate, tile or stone. And newer appliances in working order.

Even if it’s not huge, it should have “countertops that are servicable, that aren’t going to have to be replaced soon and cabinetry in good condition,” says Alan Hummel, past president of the Appraisal Institute. “It has to be well-appointed and large enough to fit your needs.”

2. Modern bathrooms. Buyers are looking for “master baths that give a little room to roam,” says Hummel. A big asset is a spa or a whirlpool tub. “I’m always entertained by the people who have them in the master bath and don’t use them,” says Ron Phipps, principal broker with Phipps Realty & Relocation Services in Warwick, R.I. “But it’s a big feature.”

But you don’t want to see that false economy of a home improvement loan spent on a $30,000 bathroom while no one spent a few thousand dollars to upgrade the pipes. Stick to the essentials if you have just a little money to spend on upgrades.

3. A well-appointed master suite. “People are really excited about master suites,” says Hummel. The wish list: A luxurious bathroom, lounging areas and walk-in closets.

4. Use of Natural materials. “People like natural materials,” says Hummel. “Ceramic tile, hardwood floors, granite. There’s real appreciation for historically true materials. And simulated works as well. The look is very popular.”

5. Curb appeal. First impressions are everything. A house that appears tidy and well-cared-for will sell more quickly and for more money. Believe it or not, a good first appearance can add as much as 10 percent to the value of the home.

Continue reading this Yahoo! Finance guide to home values …