What Factors Affect a Home Appraisal?
When it comes to buying or selling real estate, the more you know, the better. That’s especially true when you’re talking about a home appraisal. Do you know what factors affect your home appraisal? If not, take the time to read up on it and familiarize yourself with everything involved. This is helpful in several ways, not the least of which is that it gives you confidence in the price you pay for a home. For sellers, having an appraisal done prior to listing will also help you feel better about your listing price. So, let’s take a look in what goes into a real estate appraisal.
Location
As the saying goes, “location, location, location!” The neighborhood and nearby amenities are going to weigh heavily on how much a home is worth. How much are the other homes going for? How safe is the area? Is it good for children, seniors, pets, etc.? These factors make a difference on not only how much the home is worth but also how much someone is going to be willing to pay for it. A developed neighborhood is a good thing, whereas a neighborhood that appears neglected is something you should steer clear of.
Number of Bathrooms and Bedrooms
The number of bathrooms and bedrooms found in the home is going to make a difference on how much the home is worth. Obviously, if your home has 5 bedrooms and it is compared to a home in the same area that has 2 bedrooms, your home will be valued a great deal higher. The more you have of each, the more the home is usually going to be appraised for.
Square Footage
The size of the home is going to make a difference. You need to consider the amount of space that is inside the home. How many floors are there, and how many rooms? The larger the home, usually the higher the amount when it comes to being appraised, but this factor is still largely influenced by location. That is, you may be able to get a larger home in one area than another, based on market values in that neighborhood. Have you ever noticed that sometimes, a Downtown studio condo can sell for as much or more than a much larger home in the suburbs? That’s because the price you pay per square foot is relative to the surroundings. You need to make sure that all your needs are being met within your budget, which is why you always have to consider the bigger picture.
Home Renovations
Recent home renovations that boost the appearance and the modern-appeal of the home are going to play a part in the appraisal value. Having a more updated kitchen or bathroom is always a good thing, especially when these rooms looked older. This is going to be kept into consideration, especially when the items within the renovation are brand new. This adds value to the home.
Current Market Value
The current market value is always going to play a role in the amount that the home sells for. Some would say this is the top factor of all. You need to make sure that your home is being compared to like-homes in the area that have the same type of look and value. Being compared to some of the lesser homes is definitely not ideal, but if the homes in the area are going for less, you are going to get less for your home overall.
Working with a qualified real estate professional and someone that knows more about home appraisals can give you even more information about the value of your home. If you’re planning to buy or sell a home in or around Chicago, give me a call to learn how I can help you ensure you’re maximizing the return on this very important investment.
