I recommend reading the following article from Realtor.com.
Home Repairs to Do Before You Refinance
Finance, Refinancing Jun 14, 2013 By:
Property values have come roaring back. Many can now refinance their loans by virtue of having additional home equity. And increased property values can also put homeowners in a better financial position to sell their home without entering short sale territory. But the fact remains: Everyone wants to attain maximum value for their real estate and home repairs can help.
So what’s the best barometer of a home’s true worth? Simple: the amount a ready, willing and able buyer is willing to pay at any given point in time. Unfortunately, appraisal estimates can be skewed, especially when not all the home repairs and improvements are taken into consideration. This is why you should weigh all home improvement decisions carefully before you commit.
When You’re Refinancing
Unlike in years past, the weight of an appraisal to determine the home value for the purposes of refinancing a mortgage is based upon the facts (which are primarily based on other homes that have sold) and what the property description is.
Improvements that may help a refinance valuation:
- Additional bedroom or bathroom
- Addition to the lot size
- Addition to the garage
- Improvement that expands the “use” of the home
When Selling
A home buyer is going to take into consideration all of the facts associated with the property, location, lot size, square footage, bedrooms and bathrooms, as well as additional cosmetic improvements that have been done that add to the look and feel of the home.
Improvements that may help a sale price:
- New paint job
- Freshly maintained landscaping
- Remodeled and/or upgraded interior
- Deck and/or patio addition
- Additional bedroom or bathroom
- Addition to the lot size
- Addition to the garage
Read more here...http://www.realtor.com/advice/home-repairs-to-do-before-you-refinance/