If considering selling your home soon, you might want to know what hurts a home appraisal value. An appraised value is the estimated price of a property at a specific date. To determine that value, an appraiser researches local real estate trends, recent sales, and other pertinent details about the property in evaluation.
The resulting home appraisal value helps potential buyers understand what they can expect to pay for the house if it’s listed for sale today. Homeowners must understand what an appraisal gap coverage is and what could hurt a home appraisal value. It enables them to take measures that uphold the property value, making faster sales. Here are the top 5 factors that hurt a home appraisal value:
The Location Matters
The location of the home can affect its appraised value. If a house is located in an area with a high crime rate, fewer potential buyers will want to purchase it. The house will fetch less even with modern and desirable amenities. Location can also affect the cost of home repairs and maintenance.
Houses in areas with extreme weather conditions will need more frequent repairs. For example, a roof will develop problems such as missing shingles and leaks faster if heavy rain or storms occur.
Homes in inaccessible locations or areas without a ready transport system may fetch less. Access to amenities and convenience such as malls make a place more competitive. It may also determine the type of buyers drawn to the area. For instance, young families are more likely to settle in locations with hospitals, schools, and recreation facilities. Senior citizens are keen on safety and calmness.
Age Of The Home and Any Potential Hazards
The age of the home can affect its appraisal value. Old houses may still have beautiful woodwork, ornate fireplaces, and other charming features, but they might not meet modern safety standards. For example, a house built in the 1930s may not have an updated electrical system. It means it can’t meet the electricity demands of a modern family. The electrical panel, wiring, and outlets may be inadequate.
The property could also have other issues that reduce its appraisal value. For example, lead paint is often found in older homes. In some areas, it’s required by law for real estate agents to disclose the presence of lead-based paint. Even in places where it’s not mandatory, agents might advise sellers to inform potential buyers with small children.
Besides this, older homes may require more renovations to meet current standards. They may need more insulation, improved air conditioning, and ventilation. The good thing is that most homeowners ensure the property meets current standards, even transforming the place into a smart home. The effort increases the property value.
The Condition of The Entire Property
The condition of the property can affect its appraisal value. A house needing more repair or updating can hurt the appraisal value. If the roof is badly damaged, it will cost more to repair. If it needs replacing, the cost could be even higher. Other major repairs that could affect a home appraisal value include severe termite damage and a badly cracked foundation.
The outside of a home can affect its appraisal value, too. The yard's condition, the house's general upkeep, and the paint determine the appraisal value. It will fetch more in the market if it has nicely manicured lawns and is generally well kept.
Existing Features and Amenities
Some property features would increase the appraisal value, even if they weren’t originally included when the house was built. Examples include solar panels, a geothermal heating and cooling system, and a fireplace.
Note that smart features such as a remotely controlled security system, motion sensor lights and faucets, and energy-saving HVAC systems are desirable features that increase a property value.
Besides this, spacious and well-lit rooms are more attractive, making a home more marketable. So do modern fixtures such as cabinets in the kitchen, more storage units, and wide stairways.
How Many Bathrooms and Their Condition
The number of bathrooms in a house can affect its appraisal value. A home with only one or two bathrooms may not be suitable for growing families, especially if they have young children.
Consider adding more and upgrading the master bedroom if possible. The condition of the bathrooms can also affect a home appraisal value. If old and outdated, it may lower the appraised value.
Make Amendments Before Listing the Property in the Market
Understanding the factors that could hurt your home’s appraisal value enables you to make amendments before listing the property in the market. Simple steps such as not skipping maintenance practices go a long way in maintaining a functional and attractive home.
You’ll also save money as you often don’t have to carry out major repairs and replacements. Your home will fetch more money and sell faster when it’s in top shape.
