The condition of your house in comparison to similar houses in your community and their sale prices is the main factor considered in a home evaluation. When determining the value of your home, appraisers also take age, features, and curb appeal into account. Find out what hurts a home appraisal and what you can do to fix it.
Why Is Appraisal Value Important?
The method by which a qualified appraiser ascertains the worth or fair market value of a home is through a home appraisal. When buying, selling, or financing a mortgage, the value is crucial
For a homeowner and a seller, it can be challenging to sell a home that is appraised on the incorrect side of the spectrum (low versus high). Low appraisals can put homeowners, sellers, and purchasers in a bad situation, resulting in everything from a canceled sales agreement to a delayed refinance.
Homeowners and sellers can position themselves to get the greatest price for their houses by being aware of the factors that can derail an appraisal.
What Affects a Home Appraisal?
In order to maintain consistency, the assessor employs a “Uniform Residential Appraisal Report.” By doing this, bias is reduced and the inspectors are all treated equally. They typically consider the following:
- Year of construction
- Building size
- The number of bedrooms, bathrooms and total heated and cooled square footage otherwise known as GLA in the appraisal industry. Which stands for Gross Living Area.
- Features of the basement and attic, whether or not they are finished
- Driveways, garages, off-street parking, etc.
- Housing industry- the general climate of the overall Housing Industry
Factors That Negatively Affect Home Appraisal
Here are some of the most typical factors that hurt a home appraisal:
- Unique Homes
Being unique can seem like a positive thing, but in the world of real estate, that isn’t always the case. The appraiser might not know how to assess the property and end up going with a lesser price if your home has an architectural design that sets it apart from other homes in the area.
- Outdated Systems, Appliances, and Interiors
The workhorses of a home are appliances. However, if it’s time to upgrade the heating and cooling system or to “put a few of them out to pasture,” it will result in a reduced home assessment.
- The Structure and the Construction
A home’s structure and construction are closely examined by home appraisers, who may identify the precise components that were utilized to build the house. A house with current construction or renovation materials will be valued higher.
How To Prevent A Low Appraisal
Putting together a package of data about your home for the appraiser that includes the condo or plat documents, data on similar homes, and any renovations you’ve made that should affect the value of your home is advisable.
Using a certified appraiser that is familiar with the local area and real estate trends is also particularly helpful.
Key Takeaways
You can set your home’s asking price using the appraisal’s findings. Additionally, buyers value and also require the appraisal. Lenders use appraisals to assess how much loan value they will offer borrowers who are taking out mortgages to purchase homes.
Many house sellers are concerned about this procedure and question what affects home appraisal outcomes.
For guidance on what happens during an appraisal contact Triangle Appraisal Group today!