How Your Home Appraisal Can Affect Your Home Value
A home appraisal is an essential part of the home-buying process. It determines the value of a home and helps mortgage lenders make sure they don’t lose money on an investment.
It’s a combination of science and art, so appraisers have to look at a lot of information before coming up with an opinion about the value of your property. In addition to the physical details of your home, they’ll also consider neighborhood conditions and recent sales.
If the neighborhood is filled with vacancies and foreclosures, your appraiser will likely adjust your value downward. The same holds true if you live in a highly desirable area with new schools and a strong economy.
The age of the home will also play a factor in how much it’s worth. Appraisers typically look for older homes that have been well maintained. In some cases, a home’s age can be a good thing, as it could mean that you’ll have fewer repairs to do in the future and may be more attractive to a buyer.
You can boost your home’s value by addressing safety issues and ensuring that your exterior has curb appeal. This means pulling weeds, raking leaves and trimming dead branches.
Keep track of home sales in your neighborhood to see what the price was for similar homes. It can help you understand how your home compares to others in the neighborhood and increase its value.
Curb appeal is a big factor in how much a home is valued, so you should pay close attention to this before your appraisal. Doing small maintenance tasks, such as raking leaves and trimming bushes, will help ensure that the house looks its best when the appraiser walks through it.
Water damage can also have a negative impact on your appraisal. Appraisers will check for signs of water leaks, mold and mildew in the basement or on the roof, as well as stains that might appear in your ceilings and walls.
If you are thinking of selling your home, it’s important to take care of these problems so that your appraisal is as high as possible. This can help you sell your home faster and for more money.
It’s a good idea to do some minor cosmetic improvements before the appraisal, such as painting the front door or installing a new window blind. You can also improve your home’s overall appearance by adding decorative elements, such as planters or outdoor lighting.
You might be tempted to try to add extra value to your home with an extensive remodel or renovation. However, this can be risky. If the home is outdated or has serious flaws, an updated design might not be enough to justify the cost of your remodeling project.
Likewise, if you want to get your home upgraded to a more popular style, it might be a bad idea. Many homebuyers prefer a certain style and if your home doesn’t follow this trend, it might not be as appealing to potential buyers.