5 Things That Go Into A Home Appraisal
A home appraisal is a complicated process for determining the market value of a home. This an extremely crucial activity for homeowners and buyers alike. In order to value a home to reflect its true market value, certified appraisers would normally be engaged. They would look at several factors to determine a home’s value including its permanent fixtures and the area the land is situated on. As homes go through different owners and values change over time, there will always be a need for new, accurate appraisals.
Physical Factors
The physical features of many homes help to determine its value. Metrics such as the age of the house, the area, the number of living rooms, number of bedrooms and bathrooms will have a very significant impact on the final appraisal value. When a house needs a facelift with improvements such as a new roof, window, ceiling, door or pavement way, it will end up being appraised for a lower value than a similar house in the same area needing little or no renovation or improvements to be done. The quality of the construction; the cleanness of the craftsmanship, the value of fixtures such as plumbing, electrical switches or appliances such as air conditioners, water heaters, etc and tile finishing also play a big role in the appraisal.
Age
When it comes to certain houses, age may be an advantage. In a historic district, for example, the owner of a hundred-year-old townhouse 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. In Ghana though, older homes will generally come at a knock-down price as the society isn’t the type to invest a fortune in restoring or purchasing old homes. The trend is generally to break it down and re-build a house with more modern architectural designs. Regardless of the age of your home, a property inspector will note wear and tear and overall condition when deciding a final price.
Location
When considering the appraisal of a house, its location is almost as important as its physical characteristics. Most appraisals will include location in a comparative market analysis (CMA) which applies the sale price of similar houses in the vicinity to help determine a fair price for the house being appraised. A house in a more desirable setting or neighbourhood – because there are good schools in close proximity, the general perception of safety is good or the level of economic opportunities available in that location are vibrant – will almost certainly mean a higher appraisal value than similar houses elsewhere with less desirable features. Other location features such as the views from a home and the degree of privacy from neighbours also play a role in the appraisal.
Markets
Housing markets are constantly changing as home values rise and fall. This happens because of the law of supply and demand as well as factors such as mortgage interest rates and the general condition of the economy. Appraisers factor economic conditions into their work. This means that a home with a low appraisal value may be a good investment opportunity if the appraisal is low as a result of the housing market and not because of any particular problems with the house itself.
Landscaping
Real estate agents know that the landscape appeal is vital when selling a home because it’s a potential buyer’s first impression of the property. Landscaping can also significantly impact property values.
It is usually said that landscaping accounts for 85 percent of what buyers first see when looking at a home. When valuing a home, the appraiser must look at the subject property’s landscaping compared to other properties in the area. If the subject property’s landscaping is outdated, sparse or inappropriate for the geographic location, this all will be factored in to the appraiser’s opinion of value.
Landscaping projects can have a positive impact on home values, but agents should urge homeowners not to exceed neighborhood norms when upgrading.
So, as you go out there to purchase your home, consider these factors and ensure you have someone on your side who has a good appraisal knowledge. With Devtraco Plus projects though, you are assured of excellent value for money because our developments are situated in prime areas, have the highest quality finishing and fixtures, and are maintained regularly by a professional team of property management experts.
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