Planning to prepare your house up for sale? Everything in your house has to be in the best condition possible for the best sales price. A home appraisal is a mandatory requirement by financial institutions to help determine the property’s actual value.
However, you may have a lovely home, and the appraisal report comes lower than you expected. Here are certain factors that may negatively affect your home appraisal;
This is the most significant factor that decreases a home’s value. Homeowners who neglect upkeep do not realize how this can bloom into an extensive and expensive problem.
For instance, consider a small leak on your roof, which might take you $300 to repair. Postponing the repair for years makes the rain seep into your wall bringing a water issue to your walls and ceilings. What could have been of low cost initially turn out to be more expensive over time.
Dated finishes can deteriorate a home’s value. Some buyers do appreciate homes with traditional aspects, but a touch of modern elements can do wonders. However, experts caution against over-improvement whereby you choose expensive finishes like gold faucets since it will be hard to recoup your costs at resale.
Lack of comparable properties
While conducting a home appraisal, sales of similar property in the same location are used to determine the property’s asking price. The appraiser gets homes that are close as possible to this house in terms of square footage, size, model, and amenities like a park, community pool, gated or guard gated.
In case the appraiser compares your property to an outlier in market value. Such as home sale among relatives for lower cost, divorce sale, or foreclosure can negatively impact your appraisal as the final appraisal report will be of a lower value.
Ever Changing market conditions.
Market conditions change rapidly, and the appraiser considers historical data of recent sales to forecast changes in demand and supply.
A property’s value depends on the benefits it will bring in the future to its owner. When determining a home’s value, you also need to assess if the selling price in that area will either increase or decrease in the future. This analysis offers both the property’s value and future benefits of the ownership.
It is always advisable to research how selling prices around your home are changing. For instance, at the end of the summer and winter periods, fewer people are looking to purchase a homemaking sales to reduce.
The location of your home significantly contributes to its value. A good location equals a good home appraisal, while a poor location devalues your property. At the extreme, if your home is near a junkyard, railroad tracks, toxic waste facilities, loud manufacturing plant, or bustling streets can significantly affect your appraisal. Any aspect of your home’s location, which creates unattractive views, smells, or sound, has adverse effects.
When conducting a home appraisal, various factors are considered. Being aware of the factors which may negatively affect our home appraisal offers an opportunity to maintain our homes for a higher selling price. Brightstar painters have professionals who can help you get your house appraised better.