There are a few reasons why you'd want to appraise your residential property. Maybe you're considering selling and want to find out how much your home is worth, or perhaps you're taking out a home equity loan and need to know the value of your collateral.
Regardless of the reason, it's important to understand the factors that affect residential real estate appraisals so that you can be sure you're getting an accurate estimate. Read on to learn more about the determining factors.
Condition of the Property
One of the most important factors in residential real estate appraisals is the property's condition. If a home is in good condition, it will likely appraise for more than a home that needs repairs. This is especially true if the property needs major repairs, such as a new roof or entire new plumbing and waste management system.
It's important to note that even if you've made significant improvements to your home, the appraised value may not reflect the full value of those renovations. The appraiser will only consider the current market value of similar homes in your area that have not undergone the same renovations. This is why you should only hire a qualified and experienced appraiser familiar with the local market.
If the property in question is a piece of land, the appraiser will also take into account the condition of any structures on the land. If the land is usable and in good condition, it will be worth more than land that is unusable or needs to be remediated.
For example, land with good soil suitable for farming will be worth more than land with poor degraded soil. Here, the appraiser considers the viability of the land for its intended purpose.
Location of the Property
The location of a property is another important factor in residential real estate appraisals. Generally speaking, properties in desirable areas will appraise for more than those in less desirable areas. For example, a home in an upscale neighborhood will likely appraise for more than a home in a middle-class neighborhood.
A few factors go into determining whether or not an area is considered desirable. One is the safety of the area. People feel safer and more comfortable living in areas with low crime rates.
Another is the quality of the schools. Families with children want to live in areas with good schools so that their kids can get a good education. Finally, the condition of the infrastructure and environment are important. People don't want to live in places that are dirty or have a lot of pollution or a poorly-maintained environment.
The appraiser will also take into account the property's proximity to other amenities such as shopping, restaurants, parks, and public transportation. The closer the property is to these amenities, the higher its value will be.
For help appraising your home, contact a residential appraisal service such as Buck Appraisal Services.