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Dear Edith: We moved into our house some years ago. It is a 1,056-square-foot ranch. Half of the basement is partially finished. The other half is just the washer, dryer, work bench, etc.
We are wondering if we finish the other half, what would be the financial return at sale time? We are not anticipating a sale any time soon. But would it be money-wise to have the other side completed for occasional living space — mainly for small gatherings, such as Christmas, etc.?
— D.M.
Answer: A finished basement makes a house more attractive to buyers so that it’s easier to sell, but it seldom raises market value very much. Perhaps, as the other half is already finished, you might be able to do it inexpensively.
It’s best to make improvements primarily for your own enjoyment. From a financial point of view, it’s unwise to improve your property much beyond the top price that buyers seem willing to pay to live in your neighborhood.
Dear Edith: When will appraisers start assigning premium value to “green or sustainable” homes? While the Appraisal Institute recognized decades ago that reduced operating costs allow borrowers to pay more in mortgage, I have yet to see appraisers apply this logic.
Instead, in my experience, “green/sustainable” still is greeted with skepticism like “berm or dome” homes in the past.
Answer: Extra value for green properties will show up in appraisals when buyers pay extra for it. Otherwise, adjusting for that wouldn’t really reflect market value.
Dear Edith: My mom is 86 and lives in and owns a condo in Florida with no mortgage. She had the deed listed with my name on it also. She is in fairly good health but is afraid her cash is running low. She is considering a reverse mortgage. Can you advise how we can make that happen since my name is listed on the deed?
—L.Y.
Answer: For a reverse mortgage, all owners of the property must be aged 62 or older and live in the house. Sorry about that.
Dear Edith: Last year, I had my house up for sale. My agent wanted to install a lockbox, to hold my door key for easy access for potential buyers seeing the house.