Assessing Home Values Can be TrickySeptember 24, 2012 No Comments
Assessing your home’s value can be tricky. Real estate agents and homeowners tend to be optimistic when it comes to assessing a home’s worth. Before determining a home’s worth real estate agents, home flippers and home owners should consider is how appraisers value homes. An appraiser will consider the outside of a home, the basement, the market, and any remodeling.
An appraiser will look at the outside of a home first. if the appraiser notices overgrown bushes and chipped paint, an appraiser could deducted the total worth of the home by three percent. The appraiser will also consider curb appeal and the neighbors.
“If a lot of the nearby properties are professionally maintained, the one that sticks out like a sore thumb will get a harder adjustment than in a subdivision where there’s more variation,” says San Diego appraiser Armando Ortiz.
If a home has a brand-new roof the appraiser will neither deducted or add value to a home. However, if the roof is in bad shape, an appraiser could deduct the worth of the home significantly.
“When people buy a home, they expect the roof to be working,” says Columbus appraiser Mike Armentrout. “So while a new one isn’t an added feature, it will help your chances of a sale.”
Basements add value. If a home has a finished basement an appraiser could add as much as two percent to the home’s total value. Home-additions such as, bedrooms, bathrooms and/or outside buildings like a pool-house or a studio can add as much as 20 percent to the total value to a home.
An appraiser will consider the market. You might want to wait to get your house appraised until after a few other homes in your neighborhood sell. If other homes in your neighborhood sell higher than the asking price, your appraiser is more likely to increase the value of your home.
If you decide remodeling your home, keep in mind it’s better to make timeless improvements such as a deep sink or new wooden cabinets. Trendy renovations can actually decrease the value of your home.
FortuneBuiders is a premier real estate investment education company, and can help you learn more about increase the value of you home.