What hurts a home appraisal? This is a question that many homeowners ask themselves when they want to get an idea of what their house is worth.
In this article, we will discuss some common reasons why appraisals may be inaccurate and how you can avoid them in your own property evaluation.
First things first, what is a home appraisal?
A home appraisal is an estimate of the value of a house. Home appraisers evaluate many different aspects of a property, including the size and number of rooms, the age, style, quality, and condition of construction materials as well as any utilities or appliances that are included in the sale price.
So, what could hurt their appraisal?
Not Taking Care of Home Maintenance & Repairs
One of the most common reasons why an appraisal may be inaccurate is because a homeowner has not taken care of their maintenance and upkeep. This can include things like replacing broken windows, clearing out clogged gutters, or repairing peeling paint on exterior walls.
When these repairs are made, it will show that you take pride in your property and this could lead to higher costs for all involved parties when selling the house.
It’s important to take care of repairs when they come up. If your roof has a small leak that may be inexpensive to fix at first, for example, the longer you wait to do the repair, the more costly it will be.
Having Old Or Outdated Finishes
Another major reason why an appraisal may be inaccurate is if the finishes on your home are outdated. This can include things like carpets or furniture that have not been updated in decades and it also includes countertops, paint, fixtures and appliances.
When you update these finishes to match current trends, it shows prospective buyers that these homeowners care about their property and they will want to purchase a house with similar characteristics for themselves.
Market Conditions
An understanding of the current market conditions is important to an appraiser.
One major consideration in this process is whether demand actually meets supply within your area. This means that if there are not many properties on the market, an appraiser may overestimate your property’s worth.
Likewise, when a home is on the market for sale, the equivalent sale prices of houses in the customer’s area will be used to calculate a selling price. The appraiser―who can’t change those prices―will also look at them. You’re not able to control what other people ask for their property, but you should trust your agent to find these records and help justify their valuation ― which is up to the appraiser.
Your Home’s Layout
Compared to newer homes, older floorplans may be more compartmentalized. This can lower the appraised value of your home – but only if buyers are bothered by this issue.
On the other hand, newer homes can have open floor plans that are more livable and offer a better sense of space.
We’re Here To Help
As your Washington D.C. mortgage lender, The Busch Team at First Savings Mortgage will help you through the entire process!
