Now’s a great moment to get your house appraised to determine your property value. Between 2020 and 2022, home values went up all across the nation. Although higher interest rates have led to a decrease in the number of homes sold, it hasn’t been enough to wipe out those gains. If you’re curious about how your home has fared in the market’s ups and downs over the last few years, it’s probably the perfect moment to consider getting an appraisal!
Factors That Affect Property Value
When it comes to knowing how much your humble abode is worth, an appraisal is the way to go! A pro appraiser takes into account various factors – size, age, condition, location, and amenities – to decide a home’s fair market value. Now, here’s where it gets interesting. You can actually make your home’s appraisal value better! Just get those repairs and renovations going, and voila – increased appraisal value.
But hey, don’t forget about the overall housing market and recent sales trends in your neighborhood! These factors do come into the picture too. And if you want a complete picture of your home’s worth, talk to an expert real estate appraiser, or get one for free by clicking on “What is my house worth?”.
Knowing your property’s actual value can help you with that informed decision when it’s time to refinance or sell. Trust us, it’s worth it!
Here are the 5 biggest factors affecting a home’s value:
- Prices of similar properties in the area
- The location and its immediate neighborhood.
- The Home’s age and current condition.
- The property’s actual size.
- The current state of the housing market.
Tips: How to maximize the probability of your chosen home appreciating in value over time
- Choose a desirable location.
- Stay informed about market trends.
- Consider future development in the area.
- Look for properties in stable and diverse economies.
- Assess the condition of the property.
- Evaluate the potential for future improvements.
- Check the quality of nearby schools.
- Consider the long-term outlook for the area.
- Consult with real estate professionals
The Different Methods for Determining Property Value
Method 1: Comparative Market Analysis
When you wanna figure out how much your home is worth, you’ve got a few different options to consider. First off, there’s a thing called Comparative Market Analysis, or CMA for short. Basically, this method involves looking at recent sales of similar properties in your local area. You figure out what those places had in common with yours, like features, location, and condition, and then use that info to estimate the value of your home (you don’t want to compare your home with some haunted castle, right?). Real estate agents use this method all the time to give folks a baseline estimate.
Method 2: Professional Appraisal
Now, another option is to hire a professional appraiser. They’ll come in and take a look at your property firsthand, assessing all sorts of factors like condition, size, location, and recent comparable sales. Then they’ll use all their skills and knowledge to give you an unbiased and detailed report. This is especially important if you’re going through a real estate transaction.
Method 3: Online Valuation Tools
But wait, there’s one more thing to consider – online valuation tools. These have become pretty popular in recent years, and they’re pretty convenient. You just enter some basic info about your property, like location, size, and recent sales data, and the tool will use some fancy algorithms and data analysis to spit out an estimate of your home’s value. But, keep in mind that these tools might not take into account your home’s unique features, its current condition or specific market conditions, so take their estimates with a grain of salt. After all, machines will never be able to come into your home to take a deep look at it (hopefully…).
Here is a Tip when determining your home value:
In addition to considering recent comparable sales, it can be beneficial to research and analyze pending or upcoming developments in your neighborhood or surrounding area. These developments can have a significant impact on the value of your home. Look out for planned infrastructure projects, new commercial or residential developments, or improvements to public amenities. Understanding the potential changes and their potential influence on property values can help you make a more informed assessment of your home’s worth.
Free appraisal vs Professional appraisal
While online estimation tools serve as a quick starting point, they should not replace the expertise and personalized approach of a professional appraiser. Appraisers offer a comprehensive analysis that takes into account various factors, resulting in a more accurate determination of a property’s value.
The role of licensed appraisers still plays a critical function in the housing industry. Yes, we have plenty of online estimation tools that can give you a ballpark, but they don’t take into account the little details that make a house a home. So, let’s explore the hows of an appraiser’s process compared to an online estimate.
Square Footage Accuracy
First things first, let’s talk about square footage accuracy. Online tools rely on old public records for a property’s living area, which can be all kinds of wrong. When appraisers go out, they actually measure both the inside and outside of the home for accurate data. This is super important when it comes to determining how much a property is worth, and relying only on public records can lead to some sketchy estimates.
Location, location, location, am I right? Online valuation models can be spotty in certain areas, especially when it comes to schools. But a real-life appraiser with local knowledge can find comparable sales in the same school district for better accuracy. In small towns with limited comparable sales, appraisers use their noggin and firsthand knowledge to figure out the value.
Next, let’s talk about condition assessment. Online tools can only work with what’s visible in the photos and information given, but appraisers can conduct on-site visits to get the full scoop. They’ll check the condition of the carpets and walls, and if there have been any renovations or improvements to the place. Online tools miss out on some crucial details that can really impact the value of the home.
Valuing Unique Features
Lastly, let’s talk about unique features. Online estimators are great for getting a ballpark value for generic homes, but they’re not great at valuing homes with things like lakefront views or other unique features. These are factors that appraisers nail down, making them the more accurate choice for those kinds of homes.
So, while those online estimation tools are convenient and speedy, they lack transparency and the ability to fully explain their reasoning. Appraisers, on the other hand, can give you all the details and even walk you through the appraisal process itself. That’s why they’re still necessary in the housing industry, folks!
It’s important to note that user input can introduce subjective biases and errors into online tools. Rating a home’s condition, for example, can vary greatly depending on individual perceptions. The human element in assessing a home’s condition adds complexity that online tools struggle to capture accurately.
How to increase property value?
Whether you’re looking to sell or just want to spruce up your digs, there are plenty of ways to up your home game.
Start with a Clean Slate: Declutter and Deep Clean Your Home
Let’s start with the basics, people. Nobody wants to live in a dump, so take the time to clean and declutter your space. That means getting rid of all those useless items cluttering up your home and organizing your storage areas. A clean and clutter-free home can make a big difference in attracting potential buyers and increasing the value of your property.
Expand Your Space: Adding Usable Square Footage for Increased Value
Now let’s talk about adding more space. Who doesn’t love a little extra breathing room, am I right? Consider adding a bathroom, a great room, or even a separate mother-in-law suite to enhance your home’s functionality and value. The more livable space you have, the more desirable your home will be to potential buyers.
Energy Efficiency Pays Off: Enhancing Your Home’s Efficiency and Value
Saving money and helping the environment? Talk about a win-win! Invest in energy-efficient upgrades like a smart thermostat to control your climate, new windows, and appliances, and add insulation to attract eco-conscious buyers. You’ll save money on utility bills and increase your home’s value. Cha-ching!
Transform with a Fresh Coat: Revitalize Your Home with a Paint Makeover
A little bit goes a long way with fresh paint. It’s a simple way to revive your home’s look and feel without breaking the bank. Start by repainting rooms with outdated or unconventional color schemes, focusing on high-traffic areas and rooms that leave a lasting impression. Fresh paint can revitalize your home’s appearance and make it look new again.
First Impressions Matter: Elevating Your Home’s Curb Appeal
You know what they say- first impressions matter. So, enhancing your home’s curb appeal can significantly boost its value. Power wash your driveway, wash those windows, and maintain a well-manicured lawn. Consider planting some flowers or adding a walkway for some extra pop. A great first impression can lead to a great sale!
Make an Entrance: Upgrading Your Exterior Doors for Added Value
Let’s talk doors. Replacing your front door and garage doors can make a remarkable difference in your home’s appearance. Choose doors that reflect your style and complement your home’s architectural design. Whether you prefer a modern look or something a bit more rustic, the right door can make a huge impact and up your home’s value.
Kitchen Renovation: Enhancing Your Culinary Hub for Maximum Value
If you’re looking to sell your home, it’s important to make it look and feel modern. One of the biggest selling points is the kitchen, so make sure it’s up to par. Even if you can’t shell out big bucks for a full remodel, small changes like coordinating your appliances or updating your cabinet hardware can still have a big impact. And let me tell you, a little can go a long way.
Set the Stage for Success: The Power of Home Staging in Boosting Value
But if you really want to go all out, consider staging your home instead of doing cosmetic fixes. According to the Real Estate Staging Association, 73% of staged homes sell for over the asking price – that’s an average of $40,000 more in your pocket! And staged homes typically sell faster too. Staging can cost around $1,600 on average, depending on what’s needed for your space. Sure, staging can cost a pretty penny, but the return on investment is well worth it.
Talk with a real estate agent to figure out what will work best for your situation. They can help you decide which updates and staging services will give you the most bang for your buck. Give your home the love it deserves, people!
According to a recent report by Angi, besides fixing existing issues, increasing your property’s value is a top goal for home improvement spending. And the best way to do it? Enter the NAR and NARI (The National Association of Realtors and the National Association of the Remodeling Industry), who teamed up to help you with the top 4 projects that will have the greatest impact on your home’s value:
- refinishing or installing new hardwood floors
- beefing up insulation
- converting a boring basement into a living area
- renovating those outdated closets.
Ready to see that property appraised?
Understanding what drives home value is crucial. And now is the perfect time to get an appraisal, given the nation’s increase in home value yet slight decline in sales from higher interest rates.
Here’s the deal – you can get an accurate assessment from professional appraisers or even start off with online tools. But if you want to increase your home value, focus on crucial improvements like decluttering, adding more space, enhancing energy efficiency, or sprucing things up with paint. And don’t forget to step up that curb appeal and stage your home for a higher selling price.
Oh, and we can help you skip most of the steps to sell your house. All you need to start the process is to request a free offer.