A house is one of the most significant investments a person can make in their lifetime. For this reason, prospective homeowners look for the perfect home, especially if they plan on settling down for the rest of their lives. However, some houses are not suited for long-term living, so many homeowners opt to sell instead. If this is the case, an appraisal will be done.
A home appraisal is a professional opinion of the market value of a property at a given time. Professional appraisers use a combination of methods to determine the market value of a home, giving them an idea of how much the home is worth. This information is valuable for buyers and sellers because it can open the floor for negotiations. However, few people know how appraisals work—in reality, it only boils down to the appraiser looking at certain factors, such as:
The home's general details are the first thing an appraiser will consider. This includes the house’s age, condition, size, and features. The appraiser will evaluate the necessary repairs that need to be made, and they will also look at the home's square footage and the number of bedrooms and bathrooms it has.
A home's general details are one thing, but how it fares is another. The home's physical condition is a critical factor in the appraisal process because the appraiser will inspect the home’s exterior for any signs of damage, such as peeling paint, cracked or missing siding, or loose gutters. They will also look for signs of pests, such as termites or ants, and check to see if any windows or doors are not operating properly.
The appraiser will then move inside the home and look for any signs of damage, such as water stains, mold, mildew, or other signs of water damage. They will also evaluate the home’s interior, noting the condition of the walls, floors, and ceilings. Any repairs needed, such as replacing drywall or installing new flooring, will be noted.
The individual rooms of a home play an essential role in the appraisal process. The appraiser will take note of the size of each room, including the overall condition. The quality of the paint, trim, and other finishes will be noted, as will any signs of damage or wear and tear.
Evaluating the bedrooms is quick, but for the kitchen, the appraiser will evaluate the condition of the appliances, cabinets, countertops, and flooring. They will also look for any signs of water damage, such as discoloration or warping. The condition of the plumbing and electrical systems will also be evaluated.
As for the bathroom, the appraiser will look for signs of mold or mildew. This also includes possible damages to the fixtures, tiles, or flooring. They will also check to ensure the plumbing and electrical systems function properly.
A home's interior and exterior characteristics are essential in the appraisal process. The appraiser will evaluate the condition of the interior walls, floors, ceilings, and doors. They will also note any signs of water damage, such as discoloration or warping.
The appraiser will also inspect the home's exterior, noting the condition of the roof, siding, windows, and doors. They will also examine the foundation, checking for cracks or signs of shifting. Any signs of water damage or decay will also be noted.
Home improvements and additions can increase the value of a property, so the appraiser will consider these when appraising a home. Some upgrades include adding a new roof, replacing windows and doors, installing new siding, and adding a deck or patio.
The appraiser will also note any additions to the home, such as an extra bedroom or bathroom. When assessing additions, the appraiser will consider the quality of the construction, the materials used, and how the addition fits in with the style of the home.
A home's foundation matters because it determines the stability and strength of the structure. A strong foundation is essential for a safe and secure home, as it helps to prevent the house from shifting and settling over time. The appraiser will look at this because it can affect the home's value. After all, a strong foundation can add value, while a weak or damaged foundation can decrease it.
The neighborhood in which a home is located can significantly affect its value. The appraiser will consider the area's quality, including the crime rate, the local schools, and the availability of amenities such as restaurants, parks, and shopping.
The appraiser will also look at the home prices in the neighborhood. Whether the homes in the area sell for more or less than the subject property can indicate the home’s value.
An appraisal must be done if you want to sell your home because it gives you an idea of your possible returns. You must find a professional property appraiser because they will know what to look for and give you tips to help increase your home's value. This way, you can get the highest return on your investment.
Kenny Jay Capital Corp provides top-quality services for appraisals in the DFW Metroplex. Our real estate property professionals conduct comprehensive yet unbiased appraisals to ensure you get an accurate home valuation. Call us today at 817-929-2086 to request a quote!