Will painting the exterior of your home increase your home’s value? The short answer is probably not…
… at least not in the way you think.
Let me explain this in some detail. Prior to founding a painting company, I worked as a real estate agent and still retain my real estate license.
During my career, I earned a pricing strategy advisor certification which meant I have additional training and knowledge when it comes to determining home values.
I bring this up to provide my background and experience when it comes to both painting and home valuations.
How Are Home Values Determined?
Before we begin talking about whether an exterior paint job can increase your home’s value, it’s important to spend some time talking about how home values are determined.
By and large, most single-family residential properties are valued based on a past sales comparison approach. The method involves finding similar homes that sold in the last three, six or twelve months and then accounting for the differences between the homes.
So, for example, if you have two homes, with one being 2,000 sq ft and another being 1,800, then the bigger home is worth more — assuming all other variables are equal.
This applies to size, location, condition, and so many more variables. Home’s are expected to be in a certain condition when sold and most try to look their best.
Main point: the lack of curb appeal, siding in poor condition, or siding that is damaged is more likely to reduce your home’s value than increase your home’s value.
Does Exterior Paint Add Value?
Based on these real estate principles, a home’s value is most likely to be reduced if the home’s exterior condition is poor.
If, however, your home’s exterior and siding is in fair condition, then it’s unlikely to increase your home’s value very much. For example, changing your home’s exterior from white to gray will make very little difference.
It could increase the home’s value by some, but you’re certainly not going to increase your home’s value by the cost of painting your home’s exterior.
How Much Does The Exterior Matter?
Since poor siding is more likely to reduce your home’s value, the question becomes, “by how much will my home’s value be decreased if I don’t paint the exterior?”
There’s really two different valuation decreases that occur: (1) the appraiser will make a general condition adjustment and (2) the market — home buyers — will make another adjustment. Generally, the home buyer adjustment is much steeper.
Generally, the home’s value will decrease by the cost to repair or replace the siding of your home.
Let’s say through a cost-sales comparison method, you’ve determined that your home is worth $250,000. However, your siding is in poor condition. Some of the boards need to be replaced. They’re warped or rotted.
The market factors in the cost to repair these damages, let’s say $10,000, and then reduces your home’s value by that much. In this example, your home is worth $240,000.
Buyers Are No Good At Estimating
Here’s the thing… home buyers aren’t very good at estimating. Often, most home buyers double the cost of the actual job or overestimate the amount of work that is needed.
As a result, home buyers tend to reduce your home’s value far more than an appraiser will.
For example, if the actual costs to fix your home’s exterior is $3,000, then a buyer is likely to estimate around $6,000.
Perhaps, your home could be fixed by replacing a few boards and painting the home. A home buyer is likely to assume that the entire siding needs to be replaced. A far more costly project than painting your home’s exterior.
Fresh Coats Of Exterior Paint Matter
Does painting my exterior increase my home’s value? It will increase your home’s value to the market value if you have an exterior that is in poor condition.
It’s worth repairing and painting your home if you plan to sell the home. Otherwise, I wouldn’t paint your home on the basis that it improves your home’s value.
There are many other reasons why you might want to and should paint your home’s exterior.
Make Home, Home
One of the major reasons homeowners choose to paint their home is for personal preference. Perhaps they don’t like the old, outdated yellow siding or they want to modernize their brick home.
Either way, personal preference is a major reason to paint your home’s exterior. While it may not increase your home’s value by much, it will certainly add to the curb appeal if you decide to sell.
But more importantly, it will make a house feel like home. It makes home, home.
Protect Your Home
If your home looks weathered, especially if you have wood siding, a fresh coat of paint can protect your home’s exterior. A quality exterior paint adds a layer of protection from the sun, rain, weather, insects, and more. A good quality paint job can go a long way in preventing serious exterior problems in the future.
Paint The Outside Of My Home
You’re likely to read information around the web that says a fresh exterior paint job will increase your home’s value. It certainly can, but it’s dependent on the condition of your home’s exterior in the beginning.
A fresh exterior paint job will improve the home value of a home with a poor exterior. On the other hand, a home with an exterior that is in good condition will have very little value increase.
