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Are you curious about what appraisers look for during a home appraisal? Well, an appraisal is a crucial part of the home buying process and it determines the value of a property.
Realtors use appraisal addendums to win multiple offer situations, that’s how important the role of an appraisal is to both buyers and sellers. To help you understand the appraisal process better, let’s take a look at what appraisers look for when conducting a home appraisal.
Before we dive into what appraisers look for, let’s define what a home appraisal is. A home appraisal is an estimate of a home’s value. It is typically determined by having a licensed appraiser inspect the home and researching the prices of homes that have recently sold in the area. A mortgage lender requires a home appraisal before buying a home to ensure that the home is worth the amount the seller is asking.
When conducting a home appraisal, appraisers consider several key factors. They compare your home to other homes in the area, taking into account the size and overall condition of your home. Appraisers also consider other factors that can’t be changed, such as square footage, zoning, and the home’s location.
Appraisers start by looking at the general condition of the home. They note details such as the materials used throughout the home, the condition of the property, and any alarming physical aspects of the property that may impact its habitability. They will also check the overall upkeep of the home, such as missing door handles, leaking faucets, and other maintenance-related issues.
The location of the home plays a critical part in valuing a home. Appraisers assess the home’s proximity to desirable schools, a low crime rate, and its proximity to a hospital, fire station, and police station. They will also note whether the home is located on a busy road and if it is in close proximity to owner-occupied homes, renter-occupied homes, or foreclosed properties.
The age of the home is another factor that appraisers take into account. Newer homes may have problems, whereas older homes are sometimes maintained far more and are located in historic districts. Nonetheless, the age of the home will play a role in the appraisal process. New construction is always valued higher than homes built a century ago.
Appraisers will also review the exterior of the home to ensure it is structurally sound. They will check the condition of the roof, siding, gutters, and foundation. They will also look for any signs of damage or wear and tear.
To sum it up, a home appraisal is an estimate of the home’s value, which is determined by a licensed appraiser inspecting the home and researching the prices of homes that have recently sold in the area. Understanding what appraisers look for can help you properly prepare for the appraisal process, whether you are a buyer or a seller. So, if you’re looking for a reliable realtor to assist you with your home buying or selling journey, Karen Mella, Realtor® with Spears & Co is here to help.