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Things to Consider When Your Home is Appraised
by Kathryn Lively
So, after careful consideration of the time, expense, and energy
involved in selling your own home, you have decided to go the For Sale By Owner
route. You have taken care of all necessary inspections and legalities, you are
ready to plant a sign on your front lawn and place an ad in the paper.
Before you take these steps to attract potential buyers, of course, you will
need to know the value of your home. This will help you to finalize the proper
sale price, one that accurately reflects the condition of the property and
surrounding neighborhood, one that will attract buyers to make bids.
To help determine the sale price, a property appraisal agent is needed for
assistance. One thing to note when your home is appraised: the resulting
suggested sale price is derived from several points of interest. You might think
the price of a home is determined by its age and livable condition (to be
certain, those are important factors), but oftentimes an appraiser looks at more
than the house. Sometimes he will look beyond the actual building.
Here are just a few factors taken into consideration when a house is appraised.
Consider all of the criteria before you delve into selling.
The Overall Market - Is it a "buyer's market" or a "seller's market" right now?
During a "buyer's market" period, people looking for homes have the advantage.
There will be many homes available, and prices will be competitive. A "seller's
market" is more advantageous, naturally, for the seller. With fewer homes on the
market, a seller has more leverage to negotiate a higher price to many buyers
bidding for the property.
Location - The old adage of real estate always rings true. Location, location,
location! Is your home in a desirable, low-crime neighborhood? Is development
booming? Are you near good schools and hospitals? Are you near the ocean, the
mountains, the Interstate, or within walking distance to a busy downtown? When
you look out the windows, what do you see: the beach, the desert, busy roads, or
the city dump? The appraiser takes all of these into consideration to determine
a fair price.
Design - With some houses, you can automatically tell when they were built. Like
fashion and fads, construction styles change over time. Once upon a time
split-level homes were all the rage, while in recent years you may notice
subdivisions comprised of attached single-family homes. In certain
neighborhoods, you will also detect a pattern, with a particular style repeated
every three or so houses. An appraiser will look at the way your house looks
when making a price determination. Is it a style of home that will appeal to
today's buyer? Is the color scheme attractive? Do you use vinyl siding? Will a
buyer look at your house and say, "It's perfect!"
Quality of Construction - What is the foundation of your home: brick, concrete,
or wood? Are there leaks? Is the roof sturdy? Has anything been added to the
building, or remodeled? When an appraiser looks at your home, he will note the
sturdiness and potential of the home to determine if one should pay more for it.
Age and Overall Condition - When it comes to certain houses, age may be an
advantage. In an historic district, for example, an owner of a hundred-year-old
townhome may be able to attract buyers interested in vintage real estate. More
so if the house has been cared for very well all this time. Regardless of the
age of your home, a property inspector will note wear and tear and overall
condition when making a final price. Rooms - How many rooms does your house
have? How many bedrooms, bathrooms? What space is designated for living and
recreation? Is there an all-purpose room? These days, people with family tend to
drift toward larger houses with such space, while a couple in retirement may
want something smaller. What you have to offer a potential buyer will determine
for how much the house should sell.
Square Footage - How big is the house? One-story or two? Of the square footage,
how much is usable, living space as opposed to space taken up in construction?
These days certain people crave more space and may be willing to pay more for
it. An appraiser can help determine if your house is worth that price?
Storage - Does your home have an attic, basement, or both? If yes, are they
completed and do they provide livable space? Are they divided into rooms? How
big is your closet space? The type of storage and amount you offer can be a
factor in a high appraisal of your property.
Heating and Air - Does your home have central air or must you rely on window
units to keep cool? Is your home heated by electric, gas, or oil? How your home
is heated and cooled can be a factor in determining the price of your home. Will
a buyer want to pay more for a home knowing he has to install AC and change out
gas heat he doesn't want? These are things to consider.
Parking - Is there a garage? One-car, two-car, attached or detached? Is there a
carport? If you live in an urban area, does your home or condo come with its own
parking space? This type of convenience (or inconvenience) is looked at often
when appraising home values. Amenities - Do you have a pool? A Jacuzzi?
Skylights and ceiling fans that convey? If you're on the water, do you have
deep-water access and a boat slip? Is your home equipped with an elevator for
elderly residents, or a high-tech security system? The more luxuries are
attached to a home, the more value can be given.
Financial Considerations - Have any other homes in your neighborhood sold
recently? For how much? Are you in current financial straits, that you need to
sell quickly? Various financial factors can play a role in a final value, so be
sure to go over these items with the property appraiser.
From the inside out, no door is left unopened when your home is appraised for
sale value. Before you sell, take the time to know what is to be considered
before you arrive at a final sale price to offer potential buyers.
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Kathryn Lively:
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