Although everything in your home is essential, there are certain things that the appraiser will be looking for that don’t include the home’s position, square footage and the number of rooms in the house.
We will look at other factors involved in the house appraisal or valuation, and many of these are dictated by the market, so it will be worth trying to meet the criteria for buying a house!
1. The Floor Plan is Dark and Does Not Flow
Older-style houses were traditionally closed-off with lots of rooms, so it may be worth knocking down a few walls and opening your home up if you are doing a renovation. Homebuyers now favor an open layout for easy living. This is especially true if you have the perfect aspect of a South-facing back garden. Letting in the light could prove financially beneficial during the appraisal process.
When you knock down walls, it can be a fantastic transformation in an older home. In many cases, you move what real estate appraisers refer to as functional obsolescence. For example, walking through a dining room to get to a bedroom is not ideal.
By removing walls, you can often change the lighting patterns and the home’s flow, creating a much more desirable floor plan today’s buyers will appreciate.
If your home doesn’t need a floor plan change, there are other ways to create the illusion of light, including:
– Painting your walls a bright color or even a bright white
– Using strategic mirrors to reflect the light
– Erecting some large seascapes or other artwork reflective of light
– Arranging furniture to create an excellent open flow
When you sell your property, the REALTOR® will probably advise you to send substantial furniture to a self-storage unit, making the house look much more spacious. By doing so, you can open up the flow, which you can’t do with clutter.
Doing these things can make the home look that much more appealing to not only homebuyers but also an appraiser.
2. The Condition of Your Driveway
Before getting the appraiser in, you may have to give your driveway a quick makeover. The driveway is the first thing visitors to your home will see, so if it is asphalt, even it out to get rid of cracks. Getting a driveway seal coat can go a long way toward improving the appearance.
3. Any Strange Odors Coming From Inside
There may be a cracked sewage pipe under your house—and if there is, fix it. Get a plumber in to have a look. Mold can also smell terrible, so check for it.
If you must deodorize under the floor in your house, start with a few bags of garden lime to neutralize the odor. Throw open the windows and burn incense (sandalwood) when no one is there.
4. Outdoor Shed and Outbuildings
If your outdoor shed looks ramshackle and unpainted, get it repaired and painted before the appraiser comes over. A wooden shed will look nice painted cream with green trim and a green roof. The main thing is that it is made to look neat and clean.
You don’t want the shed to impact negatively on your property sale. Plant a small garden bed along the side of it, with a few seasonal flowers.
5. Unsightly Neighbors
When appraisal time comes, no one wants a bad neighbor. If your neighbor never mows the lawn, get the contractor in to do your yard and offer them a free mow at the same time. It will be worth it to ensure the appraiser doesn’t downgrade your property.
Get any overhanging branches cut back and generally tidy up the yard. Make sure that their rubbish bin has been taken inside.
6. A House With a Terrible Past
It’s better to not buy a house where a recent murder has occurred, as you can’t do much about the past. The appraiser could take this into account.
Final Thoughts on Factors That Impact Your Appraisal
Chat to your real estate agent about what else you should do to get more ideas on what impacts a house appraisal.
Bill Gassettis a nationally recognized real estate leader who has been helping people buy and sellMetroWest Massachusetts real estatefor the past33 years. He has been one of the top RE/MAX REALTORS® in New England for the past decade. In 2018, he was the No. 1 RE/MAX real estate agent in Massachusetts.
Tags: AppraisalBill GassettHomebuyingHomeownershipRE/MAXselling
FAQs
There are several surprising factors that can impact the appraisal of a home. Some of these factors include the location, size, condition, and age of the property, any recent renovations made, the home's curb appeal, the amount of storage space available in closets, and the value of comparable properties.
Which of the following is a basic fact that affect all real estate appraisals? ›
Location. Location is an exceptionally important value factor because location influences demand for the property.
What not to say during a home appraisal? ›
As a realtor or a homeowner, you should avoid saying things like: – Is it going to come in at this “value”? – I'll be happy as long as it appraises for at least the sales price. – Do your best to get the value as high as possible.
Why would an appraisal be denied? ›
One of the reasons why an appraisal waiver can be denied is if the lender has any reason to believe that an in-person appraisal is needed. That gives lenders wide discretion in determining who qualifies for an appraisal waiver and who doesn't.
What are the factors influencing appraisal? ›
Performance appraisal when done systematically results in measuring factors as job knowledge, quality, quantity of output, initiative, leadership abilities, co-operation, dependability etc.
What is the biggest factor in appraisal? ›
Because your home's value is based on the value of similar homes in the area, the local market will have a big impact on your appraisal. If the market is hot, many homes will sell at much higher prices, meaning your home could appraise for higher.
Does a messy yard affect appraisal? ›
The standard, professional answer is, of course: “No, it won't affect value.
Does cleanliness affect a home appraisal? ›
When they see something that looks nice and looks clean and presents well, they'll have a better impression of the property. But that won't affect the appraisal value,” says Donald Boucher, president of the appraisal firm Boucher & Boucher in Washington, DC, and an appraiser with over 40 years of experience.
What decreases the value of a home? ›
Sometimes lower property values are due to factors with your property, such as neglected maintenance, outdated kitchens, or patchy home improvement projects.
Do appraisers look in showers? ›
Bathrooms
Similar to kitchens, bathrooms are inspected for quality, condition and materials. An appraiser looks at whether it's a full or half bath, whether it has a decent shower, updated lighting, quality counters and looks for signs of mold.
Recency Error: Recency error in performance appraisal is all about giving disproportionate weight to an employee's most recent performance rather than considering their overall performance over a specific period. This bias can lead to overlooking long-term achievements or progress.
What should never be done in an appraisal? ›
In this article, find out about the following key management mistakes:
- Not preparing enough.
- Avoiding negative feedback.
- Not being focused enough.
- Bringing up new elements.
- Only reviewing a portion of the year.
- Bundling appraisals and pay reviews.
- Focusing on the process, not the individual.
- Not actively listening.
For example, a messy house that has dishes in the sink and clothes on the floor shouldn't affect the appraised value. However, if the house is dirty to the point where odors permeate throughout each room and the carpet is so dirty it needs to be replaced, then the value will go down.
How do you argue a low appraisal? ›
Low home appraisal ruining your purchase or refinance? Here's what to do
- Appeal the appraiser with your lender / appraiser.
- Ask (and pay for) a second appraisal.
- Change lenders and start over with a new appraisal.
- Renegotiate the purchase price with the seller.
- Make a higher down payment.
A home can fail an appraisal if it doesn't meet the standards for the loan. In this case, the lender may decide that problems with the home's condition are too extensive to repair and may reject the home. Otherwise, the lender can require repairs that must be completed before the loan can be approved.
What increases appraisal value the most? ›
Options to maximize your home's appraisal value can include bolstering the property's curb appeal, documenting home upgrades, making minor repairs, deep cleaning the home and doing your own comparison analysis. It's also important to accept what you can't control.
What are the four elements of value in appraisal? ›
(1) the property must be in demand, (2) it must have usefulness or utility, (3) there must be a degree of scarcity, and (4) it must be possible to transfer it legally in title or use.
What are the factors that distort appraisal? ›
It is possible to identify several common sources of error in performance appraisal systems. These include: (1) central tendency error, (2) strictness or leniency error, (3) halo effect, (4) recency error, and (5) personal biases.
How does an appraisal determine value? ›
A property's appraisal value is influenced by recent sales of similar properties and by current market trends. The home's amenities, including the number of bedrooms and bathrooms, the floor plan's functionality, and the square footage are also key factors.
Bill Gassettis a nationally recognized real estate leader who has been helping people buy and sellMetroWest Massachusetts real estatefor the past33 years. He has been one of the top RE/MAX REALTORS® in New England for the past decade. In 2018, he was the No. 1 RE/MAX real estate agent in Massachusetts.