It’s expected that while you are refinancing or selling your home, it will be appraised to determine its value in the market. Some of the areas that an appraiser will look out for include materials, square footage, its condition and amenities. The appraiser then assesses these areas against similar properties that have just been sold in that area. The appraisal process is intended to be impartial; however, appraisers are humans and neat, clean rooms and a good curb appeal signal a well-maintained home. Real estate companies can help maintain your property in good order, thus ensuring it retains its value. However, you have to choose a reputable real estate management company. Britainreviews.co.uk will help you with online reviews about real estate management. Reading the reviews will help you select the well-reviewed companies, and this way, you’ll get a reputable company to manage your property. Below, the factors that affect the appraisal value of a home are discussed.
Location
The location of your home will influence its appraisal value. Different localities increase your home’s value. For instance, if your neighbourhood has lots of space, it will have more worth than when it’s at the corner parallel to the main road and with no much space. The value of a neighbourhood is determined by a variety o location related factors, including its proximity to hospital and schools, the crime rate and the surrounding amenities such as parks and beaches.
Home condition and features
The home will itself influence the market value. Larger homes with more bathrooms, bedrooms and ample working space will have higher prices. New homes will typically sell and appraise for more than old homes, as typically, the new homes are in an improved condition and will need few repairs. However, renovations on old houses can make them sell as much as new homes. Improvements, including finished basements and a new kitchen, will also increase a home’s market value. However, you must be careful with your upgrades; if they are too luxurious for the locality or do not suit the tastes of local buyers, you may not get a return on your investments.
The market and Economic condition
The value of a home is also influenced by the condition of the economy. Specifically, the price of property can be impacted by a recession. For example, in the 2008 great recession, the value of homes dropped. It is not always that a slow economy will lead to a drop in the value of homes. Instead, it is primarily the type of home owned by a person that determines the extent to which a recession will affect its general value. Typically, recessions tend to affect homes with high price tags more as compared to low priced homes. There’s also a relation between the location of a property and the economy. Homes located in rural and suburban areas tend not to drop much in an economic slowdown as in such times, people tend to move out of cities.
Curb appeal
A home’s general landscaping and curb appeal affect a home’s appraisal value. A home lacking curb appeal generally has a lower value. Additionally, if your yard is full of dangerously hanging tree branches and plants that are hard to care for, this could hurt its appraisal value. To help increase your homes appraisal value, go for a clean landscape, one that is easy to care for and appealing to most buyers.
Square Footage
The home’s square footage will also play an essential role in determining its appraisal value. After an appraiser has determined a home’s square footage, they then assess the distribution of the space all over the home. While doing this, they try to answer questions such as the number of square footages that is liveable and useable. This difference is essential in determining a home’s value.
Storage space
Storage space is also considered in determining a home’s appraisal value. Plenty of closets, a big storage attic and a useable basement will give a home a high appraisal value. A home buyer will seek to know the amount of storage space in a home before they can decide to purchase it or not, and thus appraisers cannot leave it out.
Air and heat
The type of air and heat in your home is a factor that affects its appraisal value. Usually, homes that will need air conditioning units will be appraised lowly than those with central air. The method of fuelling heat, whether by gas, electricity, or oil, will also determine the homes’ approval value. Outdated systems have the effect of lowering a home’s appraisal value.
In conclusion, this article has listed the factors that affect the appraisal value of a home.