Appraisals are one of the most important parts of selling your home and is arguably the single most crucial aspect of selling your home. If you are looking for answers about appraisals you most likely already know what an appraisal is. But for those who don’t know, an appraisal is defined as an unbiased opinion of your home’s value by a certified appraisal professional. But what does that mean for you and your home?
Why Are Appraisals Important?
An appraisal is so important because it directly affects how much you can sell your home for. If you want to sell your home for more than what an appraiser tells you it is worth you can absolutely decide to list your home for whatever amount that you would like.
However, even if you find a prospective homebuyer who is willing to put in an offer they will need to get an appraisal done on the home before their mortgage lender will agree to approve their mortgage loan. If the appraisal comes in lower than what the buyer was expecting then the mortgage lender will more than likely deny a loan for anything more than what the home is worth. This can cause the buyer to pull their offer.
This is one of the main reasons why we recommend that home sellers have their own appraisal done before they list their home. It helps sellers to have more of a realistic understanding of what they can and what they can’t sell their home for.
What Has an Impact on Your Appraisal?
We understand that sellers want to know what will and what won’t affect a home appraisal. So we’ve taken the time to put together a list of some of the most frequently asked about aspects that have an affect on your home appraisal.
Does the Number of Bedrooms Affect Appraisal?
Typically the number of bedrooms will have a direct affect on the appraisal value, however, it isn’t always that simple. The amount of bedrooms should also have a direct correlation to the square footage of the home. For example, there are two basically identical homes located in the same neighborhood. They have the exact same square footage and the only difference is that the first home has 3 bedrooms while the second home has 4 bedrooms. The second home will be appraised for more than the first home.
For the most part this is always true, however, appraisers also take the square footage of the bedroom into account. There are requirements that the ANSI (American National Standards Institute) have put into place for home sellers as far as what a bedroom really is. The first bedroom in a home must be a minimum of 120 square feet, after that any other spare room that is a minimum of 90 square feet is considered a bedroom. They also must have ceilings that are at least 7 feet tall.
Do Appliances Affect a Home Appraisal?
The answer to that is absolutely. Appliances are a huge selling point in a home and will absolutely affect an appraisal. Appliances like new washers and dryers or a new air conditioning unit can peak the interest of many buyers, however, the most important appliances are always in the kitchen. It is no secret that the kitchen is the heart of any home and you want your heart to function as efficiently and seamlessly as possible.
Even a home with an outdated kitchen can look more appealing with a brand new stove and fridge. Some buyers will even negotiate that the sale will be contingent on the sellers updating the major appliances before they close on the home.
Will Location Affect My Appraisal?
We get asked things like “Does the number of bedrooms affect an appraisal?” or “Do appliances affect a home appraisal?” The answer to that is yes, however, location is really the most important factor when it comes to appraisal value.
The neighborhood crimes rates, school districts, as well as how close to the coastline and nightlife all have a huge impact on the price of the home. You can take two completely identical homes and put one of them near the coast in a lovely little neighborhood with a great school district, then place the other in a neighborhood with a high crime rate with broken down buildings. The appraisal value of the two homes will be hundreds of thousands of dollars different.
Does Age Affect My Appraisal?
The age of pretty much everything in your home will factor into your appraisal. The age of the home itself will be the biggest determining fact and that is directly correlated to major issues with the property. A newer home is less likely to have major issues like needing a new roof or plumbing.
However, older homes that are historically significant will be of more value. So age does help determine the appraisal value of your home but that doesn’t mean that all older homes will be appraised for less. Especially if the home has historical significance or if it has been maintained well.
Here at R.E. Appraisal Associates of SWFL, Inc we care about our clients and their home selling and buying experience. If you need a home appraisal our excellent staff will help you with a quick and accurate appraisal either in-home or online. To learn more about what affects your home’s appraisal value and what our team can do for you give us a call today at 941-743-3700.