Ever wonder how an appraiser determines value? I mean, your ability to get a loan or get a home sold is based on the value an appraiser comes up with so why shouldn’t you know how they do it? It might even help you make smart decisions about finishing or remodeling your home. Here’s 17 Things Appraisers Consider When Determining Your Property Value…
- The market conditions on the date of sale.
- Location, Location, Location.
- The site/view both looking at the property and looking from the property
- The universal design and appeal of the dwelling
- The quality of construction
- What’s the age of the property?
- What’s it’s condition?
- Total number of rooms
- Number and type of rooms (numbers of beds and baths)
- Square footage (gross livable area)
- Is there a basement?
- Is the basement finished?
- How functional is the property?
- Is there central heat and air?
- What type of car storage is available (garage, carport, etc.)
- Are there any special features that your property offers?
- Were there any special financing or special sale considerations that might have impacted value for comparable properties?
How this list helps
- What if you decide to build a home but not finish out the basement?
- What about adding a study without a closet? Now it won’t count as an additional bedroom.
- What if you are in a great financial situation when you are ready to sell but your neighborhood has ten bank-owned homes for sale?
All of these things affect value, either real or perceived. Use this list to your advantage and plan ahead.
If you’re a buyer…
Unless you are buying a home for life, consider how others will perceive the home when it’s time to sell.
- Is the floor plan attractive or horrid?
- Is it located in an area that will still be desirable when you plan to sell in 3 years, 5 years, or 10?
- Is the home soundly constructed? Will it last the test of time?
Use some of these questions to help you make your purchase decision for the long-term.
If you’re a seller…
When you are getting ready to sell ask yourself this question:
- Is there anything I can do to raise the real or perceived value of my property?
If the answer is yes, and you are likely to get a return for the investment of time, money and effort you put into the project(s) or you are able to make the home more salable…. do it.
I hope this article has helped you learn a little about what determines value in an appraisal and how you can be prepared to maximize your benefit in any situation. Contact us at Exit Pro Real Estate to learn more about property values, get home owner tips, or find some great properties. Thanks for reading.