Home appraisal is always an intimidating event. An appraiser’s opinion is important whenever you want to sell, buy or refinance your real estate. Whenever you decide to sell your property fast, you should be aware of all factors affecting your home appraiser's opinion. Let’s go over those factors in this blog post.
A home appraisal is an expert opinion on your property’s cost. The procedure is completed by an expert home appraiser who is qualified for completing the respective evaluation in your state. Generally speaking, home appraisers use a “Uniform Residential Appraisal Report” to complete qualified expertise. The key factors the home appraisal considers are the following:
- The year of the property’s construction;
- The number of stories;
- Materials the property and the roof in particular are made of;
- The number of beds and bathrooms;
- The basement and attic features;
- Parking features;
- Housing market, etc.
With that said, let’s consider the main factors affecting the home appraisal.
- Location and neighborhood play major importance. The home appraisal is affected by such factors as whether the property is located in a rapidly growing area, and whether there are schools or walking trails and parks nearby. At the same time, high noise levels can significantly affect your home’s appraised value.
- Appraisers may also be wondering what are the carrying costs. These are the expenses paid by homeowners to maintain the real estate. The value paid in addition to the monthly mortgage payments includes storage fees, taxes, insurance, employee costs, and opportunity costs.
- A dated interior that needs remodeling or repairs is another factor that can make the appraiser decrease your home’s value.
- Outdated or broken HVAC. People expect the heating and cooling system to work properly in the house they buy. An outdated HVAC can bring down your home's appraisal value. Replacing an HVAC system costs $8,000 on average. Most homebuyers do not want to invest money in a new HVAC system a few months after buying a new property, So you’d better install the new one yourself or be ready that your house will be evaluated lower than you expect.
- Age is another important factor. Whether the home appraiser makes adjustments based on your home’s price depends on how well you’ve kept up with the real estate and whether you did all renovations in time.
- Fewer beds and baths can also hurt the property’s price. In fact, it’s one of the major factors considered by appraisers in their calculations.
- If there is no parking or garage, be ready for the appraisal adjustment.
These are several of the most common factors affecting your home’s appraisal value. Beware of them and don’t be surprised if you get a lower price for your property than you might have expected.