The appraised value of a property is influenced by recent sales of similar properties and current market trends. Home amenities, number of bedrooms and bathrooms, floor plan functionality, and square footage are also key factors in evaluating the value of the home. The quickest and easiest way to increase your chances of getting a higher appraisal is to paint, which can take years off an outdated home. If there are crayon marks on the walls and clutter on the floor, a new coat of paint and a little simple organization will make a good impression when an appraiser visits.
First, the appraised value of your home is based on the location of the home. Different Neighborhoods Will Increase Your Home's Value. Where your home is in the neighborhood will also carry some weight. For example, if you have a large lot in the back of the neighborhood, it will be worth more than the corner lot parallel to the main road.
The neighborhood's value is based on multiple factors, including its crime rate, how close it is to schools and hospitals, the ranking of the neighboring school system, and other surrounding services, such as beaches and parks. Many appraisers use Fannie Mae's Uniform Residential Appraisal Report to compare homes based on uniform criteria. While it doesn't cover every aspect that could affect the value of a home, it does cover many of the most important, including several notable location details. The age of your home will also be a factor in the appraised value of your home.
A newer home will not necessarily be valued more than an older home. Having a new and old house has its advantages. New homes that were built in the last 10 to 20 years are less likely to have major problems, so there is a lower purchase risk and therefore this will increase the appraised value of the home. Older homes that are located in historic districts or that have been fabulously maintained for decades will also have a high appraisal.
The number of bathrooms in your home will also increase the appraised value of your home. If you have 3 full bathrooms in your house, for example, your home will be valued more than a house that has 1 and a half bathrooms. Another area that is evaluated to determine the appraised value of your home is the total area of the home. Once that number is determined, the appraiser will analyze how that space is distributed throughout the home.
How much of your square footage is usable and livable space? This is an important distinction. Appraisers generally only include usable square footage above the level of a home, even if the basement is finished and habitable. However, a finished basement can still add value to the home. These are all areas that will be considered when evaluating the square footage of your home.
The size of the garage, or if the home has a garage, will also contribute to the appraised value of the home. A house with a 3-car garage will be valued more than a house with a 1-car garage with comparable characteristics. In general, the fact that a homebuyer can park their cars will influence the appraised value. You need to make sure that all bushes are shrubs, they are pruned and trimmed.
You don't want it to look like your patio and gardens are overgrown, you can also fix the front door and porch. These are the first things prospective buyers and appraisers will notice when they approach your home. A messy porch or front door with peeling paint can be an indication of lack of maintenance. There are several ways to improve your exterior appeal.
Making sure your driveway and garage are clean and aesthetically pleasing, improving your landscaping, adding outdoor lighting and power washing and repainting the exterior of your home are things that I can give you an exterior appeal. In environments like this, appraisal becomes much more difficult for an appraiser because comparable sales have not met the new contract prices. The government wanted to increase the independence of appraisers to avoid the possibility of loans based on inflated housing values. Keep in mind that the home appraisal process is also subject to bias; go back if you think your home price has been unfairly devalued.
An appraiser should value your home based on how it would look like a clean slate for a new buyer, which means they should ignore the furniture you would take with you when you move in, the things on the walls, and any other personalized items in your home. In fact, in Fannie Mae's Uniform Residential Appraisal Report, you can see a specific area in the report that the appraiser will use to rate the location. For example, if your home is located on a lake, pond, ocean, or has beach access, all of these features will increase the appraised value of your home. One of the last hurdles before you can sell your home is a home appraisal, a professional estimate of the market value of a home.
You don't need to do an expensive remodeling project to increase the appraised value of your home for a refinance. The appraiser is paid to value your home, but it has nothing to do with whether you qualify for a mortgage or refinance as a result of your estimate. And if the buyer has a home appraisal contingency, one of the most common, they can withdraw from the contract. Additional things home appraisers will look for inside your home are cabinets, lighting fixtures, air conditioning unit, interior paint quality, basement finish, fireplaces, countertops, ovens, and electrical systems.
On the other hand, if your yard is full of hard-to-care plants and a dangerous dead tree, this could also negatively affect the appraised value of your home. If the appraised value places the equity in your home at less than 20%, then you'll have to pay private mortgage insurance (PMI) or you'll need to bring some cash to the table to do a cash refinance. Let's take a look at seven ways to increase the appraised value of your home to make the sale of your home go as smoothly as possible. .