When it comes time to sell a property, there’s little more important than getting the highest home appraisal valuation. There are several factors which go into determining its market worth. Home appraisers look at many things to arrive at a figure, and each must be addressed in order to get top dollar.
A seller’s asking price will be affected negatively if the appraisal comes in low. What’s more, any buyer using bank financing will make their purchase based on the appraisal. In other words, a bank will only lend commensurate with the “official” valuation. Additionally, a low appraisal can mean having to take a home off the market to make changes, which can be a waste of precious time.
It’s important to remember, while the location, size, layout, and current market conditions will all play a role in a home appraisal, the features, fixtures, and more in and outside the home will also have a huge impact. Making changes ahead of a getting an appraisal is key to being able to sell a home for the biggest price possible.
Home Valuation and the front Real Estate Market
The simple fact of the matter is, no matter what a property owner believes their home to be worth, the appraiser will have the ultimate authority. Real estate markets are fluid, and homes which do not stay up with modern trends will not appraise as home which do. The good news is since the property is located on the , that helps to restrict the amount of active inventory, which can help to up an appraisal. Conversely, homes which sold under market value recently will have a negative impact on the valuation because those will be the most comparable properties.
“Low appraisals are becoming a bigger problem for many would-be buyers and refinancers as home values have started to stabilize and rise in some markets. Appraisals are based on recent sales prices of comparable properties. And in rising price markets, those sales prices might not be high enough to support the newest deals.” —CNBC
A residence must stand out from the proverbial crowd in order to fetch a high value. This has to be balanced because there is such as thing as overdoing it, making some upgrades and changes not worth the cost to complete. A home seller must be smart and not make improvements which ultimately price the home out of its market.
Factors to Improve a Home Appraisal Value
Fortunately, there is a way to strike just the right balance, getting the most from a home appraisal without spending too much, helping to secure a good return on investment when the property sells. Here are some strategic tips for getting a good home appraisal:
- Curb appeal is big. Okay, so it’s a front home, but so are the ones next to it. The won’t be the only factor in valuation. Curb appeal does count for a lot because an appraiser takes into account how buyers see the property. Simply put, some colorful flowers and plants, a bit of mulch to set off trees, and a clean and/or uncluttered driveway will make a great impression.
- Location, location, location. Turning our attention to the water, this will also be a great way to wow an appraiser. Be sure to give it a real house feel, with a boat, repairing any deficiencies with the dock, and having a dedicated area for things like a barbecue, and recreation. Put the location to work for you by making it into a true front home.
- Structurally sound and well sealed. An appraiser will look closely at the home’s energy efficiency and its structural soundness. It’s a good idea to get an inspection before the appraisal to find and fix any deficiencies in these areas.
- Make smart updates. If the appliances and decor are outdated, now is the time to get up with the times. Unlike a home inspector, the appraiser will take into account the appliances, decor and fixtures to arrive at a figure. Update what’s necessary to get a better valuation.
- Aging well or poorly. Speaking of structural soundness, a home appraiser will also take a measure of how well or poorly the home is aging. If the exterior looks worn and/or in any state of disrepair, that will knock down the value of the property.