Many Americans aspire to own a home before they reach 35 years. House rent costs and arm and leg in states such as New York, California, Massachusetts, Hawaii, and Rhode Island. Six million houses were sold in the United States in 2019, according to Statista. There has been a steady increase in the number of house sales since 2011. It is important to get a free home appraisal before you sell your home. The following are the top 5 factors that determine your home appraisal value.
Some homeowners check the value of homes in their neighborhoods to determine their price. Comparable houses are often called comps. They help agents and real estate experts to estimate home value. It is advisable to select homes that are within your subdivision as different subdivisions have varying school districts and HOA rules.
Use comps that are in the same placement as your home. All comps are different. So, you need to have adjustments for major differences. You can use a data model to analyze comps for certain addresses and compare subtle details such as valuated ceilings and a scenic view.
The location of a home influences its appraisal value. Some neighborhoods can increase your home value. For example, homes that are in the back of a neighborhood have a higher value than those that are next to the main road. The crime rate, social amenities, proximity to hospitals, and schools determine the value of a neighborhood. The Uniform Residential Appraisal Report helps appraisers to use uniform criteria to compare homes.
3. Age and Condition
Generally, new homes have a higher appraisal value than old homes. Vital parts like appliances, electrical, plumbing, and the roof are often in a good condition thus saving the buyer some money. For instance, if the roof of a new home has a 15-year warranty, the buyer will save that money for one and a half decades, unlike if they had to replace the roof after a few years. The cost of an average roof installation cost in 2019 was close to $8,000, according to HomeAdvisor.
4. Updates and Construction Materials
The construction material you used to build your home’s foundation affects its appraisal value. Houses that were updated or built with modern materials have a high value. Crucial updates such as windows, siding, or the roof increase your home value as they improve the safety of its structure and efficiency. Many buyers look for updated electrical, the presence of asbestos, a deep basement, new siding, new roofing, extra insulation, solar panels, high-quality doors, and windows when purchasing homes with a high appraisal value.
5. The Local Real Estate Market
The demand for homes in a certain neighborhood increases or decreases their appraisal value. If the number of buyers is higher than that of sellers, it will be prudent to raise your home appraisal value. Even so, if there are more home sellers than buyers, you might have to adjust your price to get more offers.
A free home appraisal helps you determine the value of your home when selling it. Factors such as location, comps, age, and condition, the local market, updates, and construction materials determine the value of your home. If you need a mortgage to buy your dream home, call Blake Mortgage at (480)699-1055. We provide mortgages to residents in Arizona, Chandler, Gilbert, and Phoenix.