20 Nov Unlocking Home Appraisal Success: 8 Factors You Can (and Can’t) Control

The Importance of the Home Appraisal:

When it comes to determining the value of a property, the appraisal is a critical step for both a buyer and seller. For a buyer, a lender will have an appraiser go out to estimate the value of a property as a safeguard the their investment. As a seller, the appraisal helps offer assurance regarding the value. This can be. a determining factor on getting loan approval. As for sellers,  In my journey as a real estate professional in Collin County, Texas, I’ve seen a myriad of factors come into play, influencing the outcome of home appraisals. These appraisals are not just arbitrary numbers; they are a confluence of various elements that paint a picture of a property’s worth.

Understanding that there are factors that you can and can’t control are important in demystifying the appraisal process. Whether you’re preparing to sell your home or planning to buy one, gaining insights into what appraisers look for can help you make informed decisions and negotiate effectively.

Factors You Can Control:

1. Recent Improvements

Documented changes can significantly enhance the appraisal. I recommend keeping a home binder and keep up with a list of improvements with costs associated with it to be able to share with an appraiser.

2. Curb Appeal

Maintaining an appealing exterior is a key factor in boosting the appraisal.

3. Maintenance

Regular upkeep and addressing minor issues contribute to a higher appraisal.

4. Home Condition

Emphasizes cleanliness and proper functioning without major replacements.

Factors You Can’t Control:

5. Local Market

Market trends, especially supply and demand, impact appraisal and are beyond your control.

6. Location

Where the property is located, like backing up to a busy street, overall neighborhood condition, future prospects, and nearby amenities, can influence the appraisal.

7. Size of Home

Larger homes and lot sizes generally appraise higher, but being “overbuilt” can lead to a lower value.

8. Age

Older homes tend to have a lower appraised value, with historical significance possibly counteracting this effect.