You’re selling your home and just accepted an offer from a buyer. The contracts have been signed and now the buyer’s lender, before investing several hundreds of thousands of dollars in the house, wants to weigh in on whether the sales price is justified. If that’s not a nail-biter of a situation, I don’t know what is. In the next few emails, I want to shine a light on exactly what a professional real estate appraiser is looking for when he determines the value of your property for a bank and what we can do to help him out! Knowing these details will save your manicure.
Factors that Affect Value
An appraiser evaluates certain general characteristics of a home, all of which which can affect its value in any market situation. Information about these characteristics is captured on a standard Uniform Residential Appraisal Report in either a checkbox, fill-in-the blank, or short descriptive section. Some of the data collected is fact-based, other pieces are a judgement call.
Consistency – Does the house conform to the neighborhood in use, stye, condition?
Curb appeal – Does the house give a favorable impression in the neighborhood?
Condition – Is the home safe, sound and habitable?
Quality – Referring to construction materials, architectural details and improvements
Construction and Layout – Type of house is it, number of rooms, square footage, age, room flow
Location – Is the home located in an urban, suburban or rural area?
Proximity to Commercial/Retail – Are shopping conveniences nearby?
Supply and Demand – Is the market soft or hot?
Next month I will discuss some of these attributes in detail, especially the ones over which you, as a homeowner, have control. In the meantime, enjoy this illustration of how your home is perceived.
Posted on 08/27/2014 at 11:30 AM
