What Do Appraisers Look For When Determining A Property’s Value?
Most homeowners are under the impression that the actual value of their property is determined once the appraiser conducts a physical property inspection. The fact is that the appraiser already has quite a fair idea about the value of the property even before they schedule the appointment to look at it.
The bright spot is that you don’t really have to worry about getting the place cleaned up in order to up the value of your property. Though a clean house will definitely make it simpler for the appraiser to clearly notice all the improvements, any “clutter” that you have around the house is not really going to affect the appraisal unless it is damaging to the structure itself.
Factors that Matter
The important things that will be addressed in the appraisal are:
Site- The location, topography, view, external factors, zoning, landscaping features, lot size and highest & best use
Design- Quality of the construction and finish work, any fixed appliances/defining features
Condition- The age of the structure, renovations, deterioration, additional features and upgrades
Health & Safety: Code compliance and structural integrity
Size- The Above-grade & below-grade improvements
Neighborhood- Does the property conform to the neighborhood?
Parking: Carports, garages, shops etc
Functional Utility: Is your property functional in terms of style & use?
Things to Focus On
The appraisers are going to look at things like the condition, overall design, upgrades, finish, functional utility, defining features, number of rooms, square footage and health & safety items. Ensure that all the smoke and carbon monoxide detectors are in working order.
This is important because 50% of weightage in the appraisal is given to the security factors in the property. The appraisal should be carried out by a licensed and qualified appraiser who is familiar with the neighborhood & the type of home that you are buying/selling/refinancing.
Note- For conventional loans that have originated on/after 1 May 2009, neither the homeowner nor the lender can decide which appraiser will inspect the property. The person will be chosen at random from a common pool of licensed & qualified appraisers. For latest updates and information, contact ResMac Home Loans today.