What Affects Your Home Appraisal?

 Home appraisals can often be confusing for home owners. Most people believe if they keep their home in good condition and make improvements that add value, they’ll automatically get a high appraisal. It doesn’t always happen that way.

The style, age and condition of your home are obviously the most significant factors. Hardwood floors, brick exteriors and concrete foundations all tend to raise the value of a house in good condition. Appraisers will also look at factors like the amount of storage in your house, how many bedrooms and bathrooms there are, the flexibility of the floor plan, square footage, garages, patios, pools and normal wear and tear. The appraiser will look at the inside and the outside of the home and consider what you have to offer a potential buyer when determining the value of the home. Most of these are in your control. Several other factors are not.

Location
For example, are the houses in your neighborhood relatively maintained or run down? The prettier the neighborhood, the better chance you have at a higher appraisal. Is the neighborhood older or in an area of new development? What’s in walking distance to your home? Are there good schools close by? An appraiser will also select two house of similar size in the neighborhood and compare them to yours.

Housing Market
The sale price of other homes in the neighborhood can be significant to your appraisal. When houses are selling low, that will lower the value of your appraisal. When houses are selling high, that will most likely raise your appraised value.

There also are different types of appraisals, depending on who is conducting them. Be sure to tell your appraiser why you need the appraisal. Are you looking to sell, protesting property taxes or trying to refinance your mortgage? This will help the appraiser make the best estimate.

Choosing an Appraiser
Appraisals cost several hundred dollars. To avoid doing it over, it’s important to choose a good appraiser the first time around. Ask for referrals from friends, especially if you have friends who are real estate agents. They understand the importance of an appraisal and are most likely very selective about the appraisers they refer.

An appraisal can make or break the sale or refinance of your home. Don’t be afraid to point out the things in your home that you think will get you the best result.