Know how an appraiser determines the value of your home.
Banks and mortgage lenders need appraisals to assist them in figuring out how much money to lend someone for a home loan. There are many different aspects of a loan application that the banker has to consider, but mortgage lenders always require an appraisal since the real estate will be the collateral for the mortgage loan.
A visit from an appraiser is an inevitable part of selling your home. Even if your buyer is happy to pay what you ask and loves the place, the lender will still require that an objective third party – in the form of a professional appraiser – come through the home to determine its value. . It is certainly worthwhile to know what an appraiser will look for. The questions that many home owners ask me is “how does the appraiser determine the value of my home”?
In order for the appraiser to be able to do his or her job in figuring out the value of a property they must understand quite a bit about the construction and maintenance of a home to do a good job. He or she will be looking at a number of different things in order to get an accurate real estate appraisal, including:
— Your Home’s Exterior
At its most basic, a home is made up of a foundation, walls and a roof. All three of these play major roles in the functionality and the reliability of a dwelling and the appraiser will pay serious attention to all of them. He or she will be looking for defects in the general construction of the home, as well as for any damage to these components.
—The Size of the Property
The size of your lot and the size of your home are both important considerations for the appraiser. People tend to prefer larger homes and larger lots, so you can expect these to come into play when your home is evaluated. The more bedrooms and bathrooms you have, the more you can expect the house to be worth – especially if they are large and accommodating. The square footage of the home will make up a large portion of what goes into figuring out the appraised value of the home.
—Condition of The Interior
Windows, doors, flooring, walls, plumbing, electrical, kitchen and bathroom are all important parts of a home. The appraiser must know about all of these and be able to tell good from bad, and you can rest assured that he or she will look closely at yours. This is true even down to the appliances your home includes and the light fixtures you have installed.
A new floor, a renovated bathroom or kitchen, new appliances, or an HVAC system – all of these are considered by the appraiser to determine overall value. Buyers and lenders love newer appliances and quality renovations because they contribute to the lasting value of the property.
—Extras and Additions
The extra things that make your home special will also be appraised. A home may be very basic or it may have a number of additions that make it more appealing. Even things you might consider basic like insulated windows, fireplaces, a garage or a security system can all add value to your home during the appraisal process.