Appraisers are trained to determine the property value of your home by comparing it’s sales price to those of similar homes in the area. They also physically review the home. There are some things that you, the homeowner, might not realize are incredibly negative toward the value of your home. Here are 5 things appraisers see and what it means for your property value.
- Exterior blemishes and overgrown landscaping – this can lower your property value by almost 3% in some areas! Curb appeal is usually the first clue to buyers that this is a well-maintained home. But if the outside is a disaster, who would dare to enter the home?
- New roof – many homeowners are under the impression that a new roof adds to the value of the home. Well, it doesn’t. But a roof in disrepair can seriously lower the value. Roofs and furnaces aren’t considered home improvements. They’re just necessary to the structure of the property.
- Finished basement with half bath – this can add about 2% to the value of your home. Though a finished basement is a bonus, adding bedrooms and baths to the main level can increase your home value by almost 20%!
- Sale prices of other homes – Yes, appraisers use other homes to help them determine the value of your property, but they don’t use the sales price. So if your neighbors home just sold for way more than their asking price, it will do nothing for the appraisal. This makes a lot of sense too – just because it costs more or sells for more doesn’t make it more valuable.
- Remodeling – similar to the latter statement, cost doesn’t equal quality. In fact appraisers will probably negatively adjustment the value. Think about it. If you just built an expensive custom-made, built-in desk in one of the bedrooms you’ve just made a big mistake. Not all buyers are going to use the home the way you use the home.
Make sure you consider these facts before making any changes to your home if you are considering selling it. You can always ask a Realtor for advice too! We’re here for you – firstname.lastname@example.org