Factors That Impact An Appraisal

There are many parts of an appraisal, all of which are taken into account by a licensed appraiser.  

- Condition of the home.  The appraiser will take note of the general details of the home, ranging from the materials used throughout the house to the property's overall condition.  If anything is unsound or unsafe inside the home, the appraiser will make a note of it.  From broken appliances to missing shingles, signs of deferred maintenance may negatively impact the home's value.  Appraisers will also look for signs of infestations, which can impact the structural integrity of the home.

- Age of the home.  The appraiser will consider the age of the home when calculating its value, although a newer home may not necessarily receive a higher value than an older home.  While new homes will likely have fewer issues when it comes to maintenance, well-maintained older homes, especially those located in historic districts with comparable homes, tend to have a higher appraisal value.

- Size.  The amount of living space inside a home will influence the property's overall value, and a larger home will typically be worth more than a smaller home in the same market.  Appraisers will account for the square footage, along with the number of bedrooms and bathrooms.  Storage space will also be a factor, such as large closets, along with a usable attic and basement. And lot size will also be taken into consideration.  All of these will help a house appraise at a higher value.

- Location.  The old adage "location, location, location" really does hold true.  A home's location will impact its value based on several factors, including crime rate, school district, the distance between the house and schools, emergency services, restaurants, shopping, etc.  If a home is next to an undesirable neighboring property, like a landfill, its value may be lower.  Also, the home's location within the community may affect the value.  If the house is on a quiet street, it may be worth more than a home on a busy road in teh same neighborhood.

- Renovations.  If a home has been upgraded and renovated, things like a new garage or kitchen makeover can impact its value.  Even more practical upgrades, like a new roof, updated electrical system, new windows and energy-efficient appliances, can positively increase the home's value.

- Comparable homes in the area.  An appraiser will compare the home to others recently sold or those on the market in the area that are similarly sized, with comparable features and number of rooms.  In general, an appraiser will only look at sales within the past 6 months and within a mile of the home.  In some cases, however, those criteria may be expanded in order to find more accurate comparable properties.

- Market conditions.  The overall state of the real estate market in the area will also play a role.  If the area's demand for housing is high, the home may receive a higher appraised value.  However, if the demand is low, the value of the house may be lower.  Thus, an appraisal is tied to the period of time in which it is done, and any future appraisal may come up with a totally different result.