A property appraisal is necessary in order for a lender to let you borrow money from your home's equity. If the inspectors who appraise your property value it low, you may have trouble getting the equity you need to sell your home, pay for your children's college, or do home improvements.
Read on to learn the most important factors that impact your home's appraisal.
You've heard that location is the biggest factor when you sell your home. The same is true when you want to appraise your home.
The home appraisal value is based on where your home is. Certain neighborhoods are more valuable for various reasons. For example, neighborhoods that back onto green space, parks, or have a high walkability score.
The value of the neighborhood also has to do with the crime rate, the local school's rating, and nearby amenities like beaches and parks.
Age of the Home
How old your house also has an impact on your property appraisal. But that doesn't mean that a newer home will automatically be appraised higher than a mature house.
New homes under 20 years old likely won't have major issues. This will raise the home's value. Similarly, an older home situated in a historic district that has been well maintained will also have a high appraisal.
Style of the Home
Many people are surprised to learn that the home's design impacts the cash true value of a home.
Timeless designs don't impact the long-term value of a property. But, trendy decor and finishes will detract from the home's value when those styles go out of fashion.
Who (or what) is next door can hugely impact your home's value. A backyard with no grass and a bunch of car parts spewed all over is unappealing.
The same goes for a poorly maintained exterior, unkempt garden, or lawn. Unfortunately, when it comes to a home appraisal, your neighbors’ problems become your own.
In fact, a neighbor’s ugly property can devalue your home by more than 5-10%.
Curb appeal refers to how your home looks from the curb. Does your house give off a good first impression?
Landscaping, the state of the driveway, doors, windows, and shutters all contribute to curb appeal.
If your home is lovely on the inside but lacks exterior appeal, you'll lower your valuation. Try to choose a low-maintenance and clean landscape design that will appeal to most buyers.
Recent Home Renovations
Your home will increase in value if you've done significant home renovations since the last appraisal.
New kitchens and bathrooms are the two best rooms in the house to update. These are high impact areas that can yield big returns on your investment. Often, even low-cost renovations can up your home's value.
Some of the most valuable home renovations include new garage and front doors, updated siding, hardwood floors, and an open entryway.
Be Prepared for Your Property Appraisal
There you have it! Now you know some of the top factors that impact your property appraisal.
Knowing these factors can help you increase your value by making the changes you need to get the highest valuation possible.
Now, be sure to check out the rest of our blog to find other informative real estate articles.