Whether you are buying a house using a mortgage or selling it to anyone, home appraisal stands as a critical factor in determining your house value. The ultimate goal of a home appraisal process is to place your property on the market at a fair value. As a buyer, owner, or seller, you would want to know how a home appraisal works and what the elements that determine the home appraisal value are.
Location is the most important consideration to determine your house value. A property in an area with poor access to basic needs will likely fetch a lower market price. The house value further depends on multiple factors, including the area’s crime rate, its closeness to hospitals and schools, the neighboring school system’s rating and access to other amenities like parks and beach.
Age of Home
The age of the house is another crucial factor during the home appraisal value. Homes built within 10 to 20 years are less likely to suffer from significant issues and therefore, can fetch a higher appraisal value. Similarly, older homes having constant maintenance and upgrades will also have a high appraisal value.
Design and Style of the House
Another area to evaluate during the appraisal process is the design and overall style of the house. Specific home designs do not affect the long-term value of a home. However, if the house contains extensive decoration and trending showpiece, it will likely fetch a lower value when it is no longer in style.
Number of Bedrooms and Bathrooms
The number of bedrooms is another factor contributing to home appraisal value. The appraiser will compare your home with the other homes in the area having the same amount of bedrooms to make a value comparison.
Similarly, the number of bathrooms in your home will also affect the appraisal value. If you have three full bathrooms, your home will have a higher value than a home with one or two bathrooms.
Recent renovations to the house also affect the appraisal value. Newly updated kitchen with no marks of scratch or broken walls will help to yield a higher appraisal value. It is advisable to undergo basic maintenance before putting your house on sale.
The buyers often go through cabinets, bathrooms, and condition of walls before making a decision, and having them in proper shape would mean a higher value for your house.
Current Real Estate Market
The ongoing real estate market has a substantial influence on your home appraisal. Home appraisal during the seller’s market with a ton of buyer and scarce resources will get a higher appraisal value. In contrast, getting appraisal during a buyer’s market would mean a lower appraised value.
Understanding the factor that determines your home appraisal value will help you fetch a higher price and avoid over or underpricing of your property. A home appraisal might be another box to tick on your checklist, but it can effectively help you to fetch higher value in the market.