Having our home appraised next week. What do appraisers look for when determining your home's value?

Question

What is your home's value based on? Is it simply the size/neighborhood/structural condition? Or do appraisers look for aesthetic value as well? Basically, I'm wanting to know if doing little things to the outward appearance of our home will help increase the value? (Things like adding nice, potted flowers to the front steps, fresh flowers in the house, etc. I think it's what is called "staging" your home for potential buyers) We're not selling our home- the appraisal is for re-financing our home.

Answer 1

CONDITION CONDITION CONDITION. Based on overall market data from previous 6 months, trends for past 3 years, sold data for comparable or similar properties to yours.

Hon, people don't live in landscaping. As long as it is neat and clean, it's fine. Staging your home is for potential buyers, appraisers don't care how you live in your home. And believe me I've seen some pretty bad places.

Best advise, greet the appraiser, answer any questions regarding improvements, etc. Then go sit on the couch and let them do their job. We know what to look for and some may do some testing of faucets/toilets etc. But don't follow them around the house, they may miss something important because their attention was on what you were yapping about in their ear. SIT. STAY. lol If the appraiser is there more than 15 minutes you must have a big house! lol It will be fine. Relax and let them do their job.

Answer 2

Forget staging it has no value in the appraisal, and drive-by appraisal are almost gone in this market. I look for updated kitchen and baths (if its an older home) condition of the exterior and interior. This will determine the effective age of your house. You can have a 35 year old house and never has been updated or very little and a effective age of 30 years and the same house next door that is 35 years old and completly remodeled with a effective age of 5 years. Appraisers look at condition and updated items. We also look for deferred maintenance like worn carpet, moss on the roof, bad gutters, house needs painting, bad roof, ect. if your house is in average conditon you will be fine. Your home is based on other comparables sales (withing the last 6 months) and within 1-2 miles of your home, with similar design, similar GLA (gross living area SF above grade), similar age. Then he will adjust (dollar amount) to the comparables to make the comparables as similar as the subject prop. Like if a comparable has a 2-car garage and you had a 1 car garage, he would deduct 2-5K for from that comparable from the sales price of that comparable, because they have a 2 car garage and that adds value, so your value go down. Same with GLA, Lot size, location and same with effective age until all the comparables are similar to the subject. Now it you have something that the comparable does not have he would adjust up on the comparable and your value would go up. Aesthetic has no value in an appraisal report. The appraiser may comment on how well it is being taking care of but thats about it. Little value is placed on landscaping because its perishable and if you don't take care of it, it's gone. Also remember he will be taking interior and exterior pictures and other people (lender) will see them. So just make sure your house is average clean and you will be fine. Also remember most homeowner think their home is worth more than it really is. Also don't ask the appraiser what he thinks the appraisal is going to come in at. The appraiser can not disscuss anything about the appraisal or give you a copy of the appraisal even it you paid him. Its a violation of Federal law and USPAP. If you want a copy of the appraisal you will have to get it from the lender because they are the client not you. Hope this helps

Answer 3

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RE:
Having our home appraised next week. What do appraisers look for when determining your home's value?
What is your home's value based on? Is it simply the size/neighborhood/structural condition? Or do appraisers look for aesthetic value as well? Basically, I'm wanting to know if doing little things to the outward appearance of our home will help increase the value? (Things like adding nice,...

Answer 4

What Does An Appraiser Do

Answer 5

Depending on the lender's request, the appraiser may do a 'drive by' and never come inside of your home. The appraisal is based on recent sales in the area, when compared to size of the house, size of the lot, and number of sales.

Answer 6

If its an appraisal for a refi, the appraiser may not even come to your home.

When I refinanced my house, the appraisal was based on comps -- and the weren't even very comparable to my house. Of course, all they needed was to show my house was worth more than the mortgage amount.

Answer 7

staging works psycologically but it won't affect your value. in addition to the facts you stated above, i'd look at things value related for instance....wood rot, chippec paint, water spots on the ceiling, smell of mold and mildew. your appraiser will probably check to see if your appliances are in working order and take measurements of the house. an appraiser is not a home inspector but they kinda determine problems for lenders and your homes market value based on how your home is vs. comps in your area.

Answer 8

Location, finished square footage, number of bathrooms, number of bedrooms, size of garage, condition of home, additional features and quality of materials, etc.

One appraiser noted that my home had "evident pride of ownership," and that probably influenced one or more of his subjective decisions.

Be sure you don't have trash, peeling paint, missing switchplate covers, loose wires, missing bricks, stones, boards, etc.

Answer 9

What Appraisers Look For

Answer 10

These items do not increase the value of your home. Only permanant improvements like upgrading to tile or wood floors vs. carpeting, granite countertops vs. laminate, landscaping, etc.

Good Luck!