Let’s take a look at the internal and external factors that can influence the market value of your property. If you’ve ever wondered, “what hurts a home appraisal?”- you’re in the right place.
Internal Factors That Affect a Home Appraisal
We all understand that a recently updated home will usually appraise higher than a dated one, even if both have the same square footage. But some internal factors carry more weight than others when it comes to valuation:
- Outdated kitchens
- Outdated bathrooms
- Unfinished home projects
- Negectful home maintencne
TAG Tip: Updated kitchens, bathrooms, and accurate gross living area (GLA) measurements can make a significant difference in your home’s value.
External Factors that Affect a Home Appraisal
While the condition of your home is crucial, external influences are just as impact. Here are several outside factors that can negatively affect a home appraisal:
- Neighborhood coditions
- Environmental risks
- Zoning changes
- High noise levels (such as proximity to airports traintracks)
Market Conditions and Economic Factors
The real estate market is always shifting- sometimes dramatically. These changes absolutely play a role in your home’s appraised value. Think back to 2020: homes were selling for tens of thousands over asking, often within days. That was a unique time, and our appraisal values had to keep pace with the fast-moving market.
So while the factors above can hurt a home appraisal, everything is ultimately influenced by current market trends and the broader economic climate.
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