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What You Need to Know about Home Appraisal and Why It Matters

     
June 19, 2014  |  Real Estate

home appraisal

Shelling out several hundred dollars to know how much – or how little – your home is worth may not be an enticing journey in selling a house, but having a home assessment can be the best decision you can make as a home seller.

The Blake Team offers a FREE personal, in-depth home valuation. Grab this opportunity! Sign up at www.findalldenverhomelistings.com

Getting a home appraisal will give you an idea how much your home can sell for in the market. The condition of the home is evaluated, with all the upgrades and improvements, and compared to other similar homes in the area. Appraisers have a checklist that measures real values in a property, as well as the training in lowering or raising the property price based on the buyer’s offer and on the condition of the property for sale – how cared for or neglected it is.

Home valuation is essential in that the value the appraiser sets can make or break the sale of your home. You can even make improvements to your home so you can get the most out of the appraisal and land a bigger chance of a buyer meeting your selling price.

Five Things to Consider in your Home Valuation

Curb Appeal

Appraisers consider “curb appeal” or how a home looks compared to others in the neighborhood. Having a nice and useable land or lot adds to the value of the home. If you have no plans of landscaping, you can make use of porch planters, window boxes, and yes, even a new mailbox to “evolve” the look of your house exterior at little or no cost.

The Neighborhood Factor

A house is appraised in relation to other homes in the neighborhood and the “brownie points” of living in that given area. Nearby schools, shopping or commercial centers, access to transportation are some of the factors considered in assessing a house for sale. Another factor is the price of homes listed or recently sold in the area.

Sound Condition

A prerequisite for house inspection should uncover infrastructure and building problems that need repairs before putting the property on the market. An appraiser may go beyond the needed fix to recommend home improvements like renovations or upgrades.

Washing the exterior of the home is recommended before showing, as it can improve the appearance of a home. Check the windows too and replace worn and damaged ones. Although this could be on the more expensive scale of home improvement projects, it can boost the desirability factor of your home as potential. Trivia alert! Many potential buyers place good windows high on their search criteria.

Bedrooms and Baths

When is a bedroom really considered a bedroom? Some rooms have no closets and when it comes time to sell, homeowners find that a room without a closet is actually not a bedroom after all and can’t be listed as such but only as a “bonus” room in the house, such as a home office. Take this into consideration if you want to add (or not) a closet so your home can be valued as say, a three-bedroom instead of a two-bedroom.

Comparative Market Analysis

Most appraisers use a Comparative Market Analysis (CMA) to compare your home to other homes that have recently just sold in your area. The factors for a home appraisal come with a calculated amount that are mostly based on similar homes, and not so much about the details of your own property. What are used for this comparison? Size, property type, number of bedrooms, square footage, and garage (if there’s one) are some of the factors considered.

Preparing for your Home Appraisal

 Step 1:  REVIEW YOUR OLD APPRAISAL

Many homeowners tend to neglect to review the home appraisal they had when they bought their homes without knowing that this paperwork can be very important in helping maximize a current appraisal. There in the old evaluation were home concerns that needed to be addressed, repairs needed to be done, or flaws that should be noted. Armed with this information, you can attend to these issues that once lessened the value of your home and make them into elements that could increase the value now. Perhaps you could replace old windows or those kitchen cabinets; add a closet or a bathroom; or redo the flooring.

If you do not have your old appraisal document, you should be able to get a copy from your lender.

Step 2: COLLECT DOCUMENTS

Providing documentation can help in assessing the value of your property. For example, a land survey can help in determining the accurate size of the property when such information is not readily apparent. Also, a document on the most recent selling price provides basis for comparison and a significant point of consideration. A list of items/appliances/furnishings included in the sale can also affect the home valuation. If a major household appliance goes with the sale, then the appraisal value increases. Similarly, a list of recent upgrades will add value, as well. Prepare your home inspection reports, property tax bills, and other relevant documents. All the paper work mess is worth it.

Step 3: DO SOME MINOR REPAIRS

Alongside the major concerns with the home up for sale, are the small problems that also need to be addressed lest they affect the valuation of the home. These are issues that are commonly overlooked or taken for granted, but could post a difference in your home appraisal. The great thing is, they can be easily fixed without having the need to hire professional assistance, such as a damaged headboard, leaky toilet or a broken mirror. These are minor things but could add up to your appraisal value!

An accurate home valuation gives homeowners a considerable negotiating power when selling their home. It validates the selling price and ensures that the home does not sit for months on end without any offer due to a too-high selling price.

 

home worth

 

Are you thinking about selling your Colorado home? At The Blake Team, we are known for our expertise in selling homes within the Greater Denver/Aurora Area. We can also provide you with a free valuation of your home with absolutely no obligation. Check out our Free Home Valuation Form

 

 

About the author

The Blake Team is a full-service Real Estate team based in Aurora, Colorado specializing in working with Buyers & Sellers, foreclosures/HUD, short sales, and luxury properties. A team with years of experience and an impressive success rate that made it the No.18 real estate brokerage in the nation, as well as the No.1 Keller Williams agent in Colorado led by CEO & Founder Lisa Blake. The Blake Team is your No. 1 choice for getting your dream home!