Blog - HomeSmart

Factors That Determine Your Home’s Appraisal Value

Written by HomeSmart International Marketing Team | May 6, 2021 4:00:00 PM

The process of selling a home includes a dedication to time, expense and energy. You need to take care of everything from inspections to legal procedures to listing your home. Before you perform any of these steps, however, you need to get a good idea of what your home’s real value is and take the necessary steps to help you attract potential buyers.

There is a wide range of factors to consider, but here are just a handful to give you an idea when deciding to appraise your home to find out its overall valuation.

Location, Location, Location: The location of a home plays an important role when it comes to selling it. Homes in more desirable parts of town where crime is low and proximity to markets, schools and hospitals is close, will be more in demand than other homes. Live near an ocean or mountain range? Those factors can help as well. On the flip side, if the home is located in an area known for crime, it could be detrimental to the value.

Overall Market Conditions: Another factor to consider is whether it’s a buyer’s or seller’s market when you plan to sell your home. Since the market does fluctuate (and has seen unprecedented change in the last year), it helps to keep an eye on things as much as possible.

During a buyer’s market, a greater number of sellers will flood it, so buyers obtain a variety of benefits when purchasing a house. When a seller’s market takes over, and fewer homes are available, they have more leverage to negotiate through the process including higher values than what’s originally bid.

Construction Quality: The foundation of your home is also another factor to think about when determining the value. Concrete, brick, wood—these types of materials can cause the value to drop or rise. For instance, concrete homes feature a higher price and are a preference to homebuyers due to their sturdiness and safety compared to wood. To get into the nitty-gritty of a valuation, an appraiser will also look for leaks, faultiness in wires or the durability of the roof.

Heating and Cooling: If your home has heating and cooling amenities attached, it adds to the sale price of your house. If your house has central heating and air, it gives an advantage to home sellers. For a home with modern amenities, such as high-tech security systems, skylights or various luxury touches, they all help to raise the appraisal value.

A Home’s Design: From old-fashioned charm to modern flair, your home’s design can also play a role in its valuation. Does your home showcase a style that appeals to buyers currently in the market? Does your home feature what people are looking for in today’s real estate landscape? If so, construction style, fashion and interiors can change the current market value of a home.

After you’ve appraised your home and have an idea of what you could get for it, the next step is to put it on the market. When you’re ready to sell, reach out to your local HomeSmart agent to assist you in every step in the process. With expert advice and an emphasis on communication, you’ll take advantage of the highest quality help available.