One of the worst parts about selling your house is the whole appraisal process. I mean, who should know better about how much your house is worth than you? After all, you are the one who paid for all the fixes, upgrades, and that sweet birdhouse in the backyard.
That’s when an appraiser steps in. They don’t know about the fixes you made, the Christmas dinners you hosted, or the birdhouse in the backyard. What they do know are things about the house’s structure, the market value in the neighborhood, and what the bank would find to be acceptable price.
How Do Appraisers Know How Much My House is Worth?
They don’t. Nobody does and nobody truly ever will. Just like the stock market, currency, and Kanye West’s career all fluctuate, so does the value of your house.
There are many different factors that go into appraising a house. Whatever your appraiser takes into consideration, the next three won’t. Suffice to say, neither will potential buyers or their appraisers.
While there is no exact science to configure what an appraiser will value your home, there are a few key things that any appraiser worth a lick would keep an eye out for:
Is the Outside in Good Shape?
When you a strip a house down to its nuts and bolts, the structure is comprised of a foundation surrounded by walls and covered by a roof. So if any of those things are in rough shape, then you will have a tough chance of selling your house for the amount you desire unless you fix these issues.
As the appraiser is assessing your home they are looking to for damage or defects in the construction of the house. The reason why these are so important is because in the event of a natural disaster, any severe damage to these components would render the house unfit to live in.
While the roof, siding, and foundation may all be in good shape, the guts of the house matter too. After all, what’s the point of living somewhere where the plumbing is shoddy, the electrical is a fire hazard, and the kitchen needs new appliances?
When somebody is looking to buy your house, they are already spending enough money buying the property. They don’t want to fork out additional money for a lifetime of repairs.
That is unless your asking price is really low. If that’s the case, then go with a company who buys your property “as-is”, such as We Get Properties. It will save you from this whole house selling hassle.
Size of the Entire Property
The size of the house is an important factor to an appraisal. However, appraisers also take into consideration the size of your front yard, backyard, and parking area. More space typically equates to more money.
Same goes for living space. Having more bathrooms, extra bedrooms, and storage space all drive up the value of your home.
The Little Things
Almost everything is taken into consideration. If you recently had new floors put in, new windows installed, or upgraded appliances, this all makes your house more desirable.
The reason why these drive up the price tag is because it adds to the overall perceived living experience. Most new appliances are expensive, but they last up 20 years. Every year younger the stove, fridge, and dishwasher are adds up to more dollars at the end of your asking price.
Additions and In-Laws
If you added to your home, this is the moment where it should be paying you back. Anything that your house has now that it didn’t have the day you bought it should make the amount you paid higher for the next person.
However, when you are getting this type of work done, it will also be scrutinized. Appraisers look over these constructs and make sure they are up to standards. If you had a poor addition added on, then it will actually decrease your overall value.