Top 6 Factors that Affect A Home Appraisal
A home’s value is subjective in many ways. It all comes down to what a buyer is willing to pay. That said, an appraisal can set the market for an entire neighborhood, so sellers should be aware of the several factors affecting a home’s appraisal value.
While some of the most important factors are beyond the homeowner’s influence, there are some you can work with. This post will cover some of the most significant factors for home appraisals.
Important Factors that Affect Home Appraisals
Location
You can’t appraise a home’s value without considering the location. Real estate is more valuable in some areas than it is in others. Beyond that, an appraiser will consider local schools, roads, utilities, access to public transportation, shopping, etc.
Comparable Home Sales
The appraiser will compare the property to similar homes recently sold in the area. Along with considering the sale price of those homes, the appraiser will adjust for differences. For example, appraisers will make adjustments for pools and other differences and then assign a value to each. When comparing one home to another, the differences are quantified in pluses or minuses to the appraised home.
Age
When was the house built? This can be a negative in some cases and a positive in others. Homes with certain architectural features from a specific time can be more desirable. However, older homes built in a mass-production style might be less attractive.
Condition
Condition is the surest way to mitigate age’s impact on a home’s appraisal. If the home appears well-maintained, the appraiser will set a higher value. Factors like the condition of the roof, foundation, siding, windows, and more can play a role.
Size and Usable Space
Square footage will be a key factor in determining the value of a property, but there are other factors. For instance:
- The appraiser will also account for the number of bedrooms and bathrooms.
- Livable space is another factor, but unfinished space offers less value. However, finishing an attic can increase the livable space and boost the home’s value.
Market Conditions
The local market is another critical factor. If there are a lot of homes for sale and few buyers, it might drag the value of your house down. Conversely, a local market with few homes for sale and many buyers can boost the valuation. Timing the market conditions for selling a home can significantly affect the appraisal.
These are just the top factors for home appraisals. An appraiser has a long list of points to look for and consider. Property owners have the power to influence many of the factors that will affect appraisal prices.
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