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How are home values arrived at?

For example.  Home purchased for $620K.  One year later owners put in pool, outdoor kitchen, fireplace, and landscaping at a cost of over $150K.  Do these or any other improvements become part of the new home value? 
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January 03 2009 - Folsom
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Answers (7)

The homeowner can recoup a portion of what has been spent on upgrades in an increase in value of the home.  The only way to know the exact dollar amount is to see what comparable properties are selling for.  All the best,

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September 17 2010
The improvements will probably add some value, but the true market value of your home is derived from comparable properties that have sold recently.  So pay close attention to the sales that have occurred in your neighborhood this year.
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August 31 2010
Funny how major upgrades work.  Your home will sell based on the comparative sales in the surrounding neighborhood.  This means that if your neighbor has a house of the same basic makeup and sells for 500k then it is assumed your homes value is near 500k, give or take 10%.  But the improvements will help in the appeal and will make the sale of your home much easier.  Good Luck
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August 31 2010
They do ADD to the value of the home. The added value is not dollar for dollar. Type of upgrade and area of home will effect exactly how much value is added.
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August 20 2010
Do a little reading. You've got nothing to lose.
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January 04 2009
Profile picture for sunnyview
Some upgrades add value for a sale, others don't. It all depends on yours upgrades and what people are willing and able to pay for them in your local market. In Fairbault, MN a 50K beautiful outdoor lap pool will get you close to zero in added value at sale time while in Malibu, CA you might get 25K back at sale time. If you have added features, you can add them on Zillow using the owner's estimate here.
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January 03 2009
Profile picture for wetdawgs
You can find information on how Zestimates are derived on this website under "more" then "help".   Zestimates are estimates, not an appraisal.

Modifications that are part of the public records are incorporated.   Of course, one will discover that $150 k pool etc do not add $150 k to the appraised value of a property even with a local appraiser. 


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January 03 2009
 
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