Appraisers have a different approach value your home that the banks can use to extend credit to a borrower. It's a "make it or break it" sale or refinance. Appraisers say the following five areas are where homeowners often misjudge the worth of their home.
1. The Outside
Appraiser sees: Overgrown bushes and chipped paint.
What he does: Slices as much as 3% off the value of an average-size home.
Why: Curb appeal is primo. And an unkempt yard is a sign that there may be other issues. If your neighbors are meticulous about grooming, the more your appraiser will downgrade the value of your home.
2. Basic Systems
Appraiser sees: A brand-new roof.
What he does: Nothing.
Why: Just as a knee replacement won't make you look 20 years younger, a new roof, furnace, or boiler isn't considered an improvement to your home. However, if your roof is in disrepair, replace it. Signs of leaks or discoloration can knock a significant amount off the home's value.
Be advise, that a new roof may not help you in your appraisal but could help you chances of a quick sale.
3. The Basement
Appraiser sees: A recently finished basement with a half bath.
What he does: Adds about 2% to the value of the home.
Why: Yes, your finished basement adds value but don't expect it to count like a first floor space.
The addition of a bedroom and a quarter bath on the ground floor could increase your home's value by up to 20%, especially if you've got only one other bathroom.
A below ground basement normally isn't included in the square footage of the home. This rule applies to outbuildings like pool-house casita, painting shed, or studio.
4. The Market
Appraiser hears: Two nearby homes just went into contract above their asking prices.
What he does: Nothing
Why: While a broker might pump up a home's asking price based on the sense that the market is "hot," by and large, appraisers are bound by the data of recent comparable sales.
What if prices are suddenly up in your area, and you're nervous that your house won't appraise for contact price? In that case, you might want to delay your appraisal until one of those recently contracted sales closes.
5. A Remodel
Appraiser sees: An expensive, custom-made, built-in entertainment center.
What he does: Makes a negative adjustment to the valuation
Why: Renovations that are at all trendy or not in keeping with the historical period of the home will be assessed at the cost of ripping them out.
Timeless improvements, such as a deep sink or new wooden cabinets in the kitchen, will add value.
So if you're thinking of remodeling, contact me for today's buyer's wish list when looking for a home.
Source: Money.cnn.com
1. The Outside
Appraiser sees: Overgrown bushes and chipped paint.
What he does: Slices as much as 3% off the value of an average-size home.
Why: Curb appeal is primo. And an unkempt yard is a sign that there may be other issues. If your neighbors are meticulous about grooming, the more your appraiser will downgrade the value of your home.
2. Basic Systems
Appraiser sees: A brand-new roof.
What he does: Nothing.
Why: Just as a knee replacement won't make you look 20 years younger, a new roof, furnace, or boiler isn't considered an improvement to your home. However, if your roof is in disrepair, replace it. Signs of leaks or discoloration can knock a significant amount off the home's value.
Be advise, that a new roof may not help you in your appraisal but could help you chances of a quick sale.
3. The Basement
Appraiser sees: A recently finished basement with a half bath.
What he does: Adds about 2% to the value of the home.
Why: Yes, your finished basement adds value but don't expect it to count like a first floor space.
The addition of a bedroom and a quarter bath on the ground floor could increase your home's value by up to 20%, especially if you've got only one other bathroom.
A below ground basement normally isn't included in the square footage of the home. This rule applies to outbuildings like pool-house casita, painting shed, or studio.
4. The Market
Appraiser hears: Two nearby homes just went into contract above their asking prices.
What he does: Nothing
Why: While a broker might pump up a home's asking price based on the sense that the market is "hot," by and large, appraisers are bound by the data of recent comparable sales.
What if prices are suddenly up in your area, and you're nervous that your house won't appraise for contact price? In that case, you might want to delay your appraisal until one of those recently contracted sales closes.
5. A Remodel
Appraiser sees: An expensive, custom-made, built-in entertainment center.
What he does: Makes a negative adjustment to the valuation
Why: Renovations that are at all trendy or not in keeping with the historical period of the home will be assessed at the cost of ripping them out.
Timeless improvements, such as a deep sink or new wooden cabinets in the kitchen, will add value.
So if you're thinking of remodeling, contact me for today's buyer's wish list when looking for a home.
Source: Money.cnn.com
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