With the steady rise in home prices in the Denver Metro Area over the past several years, some days it may feel as though home prices are simply pulled out of thin air. As a homeowner, you are able to control many aspects of your home’s value, but many are outside of your control. Regardless, it is important to understand what will be looked at when an appraiser is valuing your home.
Here are the 5 main factors appraisers take into consideration:
Location, location, location as they always say. The same house built in two different neighborhoods can have widely varying values. Walkability, local schools and neighbors all play a part in a home’s value. An appraiser will research comparable sales in the area and consider the sale price when valuing your home. Waterfront properties and homes with mountain views, for example, will see higher values whereas homes backing to a busy road or next to a commercial area will have lower values.
Work done on your home since you purchased it can strongly influence your home’s value, generally for the better. Some upgrades, such as a moderate kitchen renovation, carry more value than others. Appraisers will examine every room in the house and make note of the quality of fixtures, appliances and amenities. Only permanently installed appliances will be included in the appraisal. Amenities such as central air conditioning, heating and garage space will also be taken into consideration when determining the value of your home.
Quality is important when it comes to a home’s value. An appraiser will examine the quality of the materials in your home including the walls, the structure and the floors. Built in storage, cabinets, windows and doors are part of your home’s value. Bookshelves, couches and other furniture are not. Choosing high-quality items is important when renovating your home. Inexperienced home flippers often lose value on their appraisals because they choose low-quality materials to renovate a home.
The most valuable part of your home is the land it is built on. An appraiser will take into consideration the size of your lot and larger lots usually result in a higher value. Landscaping and other permanent exterior features will also impact your appraised value. An in-ground sprinkler system can add value whereas a dying lawn will have a negative impact. The same rules apply to the outside as the inside, only permanent fixtures will be taken into consideration. While an appraiser is not allowed to take appearance directly into consideration, curb appeal does play a role in your home’s value.
A home isn’t worth much if it’s structure has been damaged. An appraiser will examine the structure of your home thoroughly, looking closely at the foundation, siding and roofing again taking material quality into high consideration. Cracks and other structural damage can negatively impact the overall value of your home.
If you’re ready to sell your home, give us a call today. Our knowledge and expertise will help you prepare your home for the market to get the best sale price possible.