Hey, this is Dan Chapman, mortgage advisor with Fairway Independent Mortgage. I’m here today with Sean Reynolds, broker and owner of Summit Properties Northwest and Reynolds & Kline Appraisal. Sean, you’ve been in the business for as long as I can remember. I’ve been in the business 16 years and you were an appraiser when I first started, so a lot of experience, knowledge and wisdom. So I kind of wanted to ask you some questions, some common questions that I come across in talking to buyers and sellers. Um, and so what are some of the items that you can give credit for in the evaluation of the property versus what you can’t get credit for? Well, Dan, on the appraisal, Fannie Mae has a specific kind of set of list of items. The main things are quality, condition, square-footage, bedroom, bath count, garage, the physical components of the home.
What would you say that versus like giving credit for say, um, landscaping over a kitchen remodel, or you know, things like that. Yeah, so the, so, so the three things that I kind of focus on telling people, borrowers and real estate brokers that really are positive impacts for the least amount of money, are paint, trim, um, and that’s inside and outside carpet cosmetics basically because you get the most bang for your buck. And then next on down the line would be kitchen and then bath remodels, because people like to see those updated. You can kind of live without the rest of the house, but if you have those major components then people really like to see those. But for the most part it’s cosmetic stuff. It’s not the huge remodel that doesn’t give you the most bang for your buck.
It’s inexpensive items like uh the trim work, whether it’s crown molding or floor molding. Right. Fresh, fresh coat of paint, refinish the hardwoods, replace the carpets. Cosmetics that are really visible but don’t cost a lot of money. Ok and what about landscaping, does that usually help out if it’s, if it’s really, you know, somebody spends just maybe $500 to clean everything up. Is that, is that worth it? Clean up is great. Massive remodel where you spent $50,000 or $100,000 not so much. What’s funny about landscaping is on the Fannie Mae appraisal form, there isn’t even a category for landscaping. So that’s not even really a factor. It’s curb appeal. And one of the other main considerations in value is location. Can’t really change that, so work on the things that you can change, which are basically cosmetics because that’ll take a home from being in OK shape to being in pretty good shape, and that kind of gives you a big bump in value as you move up.
Ok, so if you’re trying to get the most value for your property, you’re selling it. Um, and what would you say are the three items that you would do first in, uh, in order to say the least expensive to more expensive? Yeah, I would say either exterior or interior paint which, whichever one needed them the most. Look at your floor surfaces, look at your countertops, see which ones of those can be worked on and it doesn’t have to be crazy over the top quality. Take it up to just what your marketplace, the renovation level of your marketplace. So if you do something way over the top, you’re probably not going to get credit for that, but if, if you do something that’s in line with your market, you’re going to get dollar back. Okay, so that’s good to know because that’s where an experienced realtor would be able to come in and advise the buyer or the seller, so to speak, on what, uh, what would be, what would be good for that neighborhood, for the sales price. Right.
Yeah, yeah, because you want to be conforming within your neighborhood and so things, that’s where things like swimming pools, you don’t really get much credit back. Very expensive. You don’t get a lot of credit, uh, adding onto a home typically doesn’t pencil. Um, unless you’re going to be there like five years or longer. You have a longer term plan, it just doesn’t pencil because it’s so expensive to add on versus just clean up your home, sell it, and move on to the house that has whatever it is that you, that you want.
Well, I think that’s the main questions I wanted to ask today. I appreciate you coming to talk to me today. Of course. We’ll see you guys next time. Thanks a lot. I’m Dan Chapman, the mortgage advisor with Fairway Independent Mortgage, and I’m Sean Reynolds from Summit Properties Northwest and Reynolds & Kline Appraisal. We appreciate you watching the video. We’ll catch you on the next one.