There are things that can hurt a house appraisal and cause your appraisal to come back lower than you may have expected. Of course, keep in mind that there are some factors, like the sales price of comparable homes in your area, that may be beyond your control. Staying on top of the market conditions in your area and knowing if your home has one of these common issues can at least help you avoid the shock and know what to expect when you have your appraisal done.
Unique Or Rural Homes
If you have a unique or rural home, there’s not much you can do to change that. The reason having a unique or rural home can be a problem is that it can be difficult to assign a value to unique houses or rural properties because of a lack of comparables. There are far fewer homes in rural areas, so it may be hard to find multiple homes that have sold in the area. And unique homes are called that for a reason – no other home is like it. So how do you find similar homes to compare it to?
When appraisers come across this issue, they may have other options, like looking for real estate comps in competitive neighborhoods, finding a fit between the top and bottom price inside the market or giving a range in value instead of an exact number. Of course, these estimates are less precise, which means the home could end up being undervalued.
Outdated Systems, Appliances and Interiors
Updating appliances or any major systems, like plumbing, electrical or HVAC, can be costly. If yours are outdated, it could affect the overall value of the home. If the interior hasn’t been changed for decades, it may not appeal to buyers, which can also cause the value to decrease.
Outdated features like these could also signal that the home has not been taken care of properly and more issues might lie beneath.
Structural And Other Construction Materials
Construction has changed over the years and builders have found new methods, technology and even materials that can make the home stronger, more energy-efficient and safer. Because of this, it could make your home more valuable.
Some homes, particularly older homes, were built with dated materials that are now seen as hazardous. This includes things like asbestos and lead-based paint. Even if the materials are safe, your home may not be as energy-efficient if it hasn’t been updated. This could also affect value. This is especially true for old windows and doors.
Roof tiles and siding that are outdated, worn out or damaged can be pricey to fix, so that could also be a major issue that can drive down value.
FAQs
There are many things that can hurt a home appraisal, such as owning a unique home and having outdated appliances, home systems and other structural issues. Anything in a home that is old, outdated or not functioning properly can directly impact the home appraisal and the overall value of the home.
What should you not tell an appraiser? ›
Don't discuss the value of your home. As a realtor or a homeowner, you should avoid saying things like: – Is it going to come in at this “value”? – I'll be happy as long as it appraises for at least the sales price.
Does a messy house affect an appraisal? ›
Your Home. The appraisal professional who performs your appraisal is not concerned with whether or not your dishes are done, or your laundry is put away – these things don't affect the value of your home, and the value of your home is what an appraisal is all about.
Do appraisers look under sinks? ›
Do Appraisers Look Under Sinks? Yes, you can expect a home appraisal to check under the sink to make sure there isn't any water damage, mold issues or problems hiding.
What factors affect appraisal value? ›
There are several surprising factors that can impact the appraisal of a home. Some of these factors include the location, size, condition, and age of the property, any recent renovations made, the home's curb appeal, the amount of storage space available in closets, and the value of comparable properties.
Does flooring affect appraisal? ›
The main way that flooring affects your home appraisal in this way is by means of consistency. Contrasting floor colors and textures butted up against each other can detract from your home's overall style, and thus it's value. Make sure you get your carpets deep cleaned before you get your home appraised.
Do appraisers look in showers? ›
Similar to kitchens, bathrooms are inspected for quality, condition and materials. An appraiser looks at whether it's a full or half bath, whether it has a decent shower, updated lighting, quality counters and looks for signs of mold.
What exactly does an appraiser look for? ›
The appraiser will be looking at your home's features, age and condition, then compare it to other similar homes in the area and what they sell for. Because your home's value is based on the value of similar homes in the area, the local market will have a big impact on your appraisal.
Do home appraisers look at cleanliness? ›
When they see something that looks nice and looks clean and presents well, they'll have a better impression of the property. But that won't affect the appraisal value,” says Donald Boucher, president of the appraisal firm Boucher & Boucher in Washington, DC, and an appraiser with over 40 years of experience.
Does decluttering help with appraisal? ›
A clean and clutter-free home can help the appraiser better assess the physical characteristics of the property.
Appraisers flush toilets, turn on all faucets and ensure that both hot and cold water are working. The water heater must be in working order and strapped according to local code. Attics and crawlspaces are to be viewed at minimum from the shoulder up by the appraiser.
Does yard affect appraisal? ›
First impressions are incredibly important – even for an objective home appraisal. If the first thing your home appraiser notices is a worn-out home with an overgrown yard, they might devalue your property. Spend some time improving your home's exterior to prepare for the appraisal process.
Do appliances affect appraisal? ›
An appraiser notes the condition and quality of appliances. For example, just as non-functional appliances can take a toll on the appraisal if the appraiser knows about them, upgraded items and energy-efficient appliances may boost the appraisal. Primarily, it's about the perceived value of the home, Miller explains.
Do appraisers look in refrigerators? ›
Appliances. An appraiser will take note of present appliances, which may include: refrigerator, stove, oven, dishwasher, washer and dryer, and others. Features and amenities. What “extras” does the home have?
What increases appraisal value the most? ›
Exterior improvements to increase home value for appraisal
- Fresh paint. ...
- Install new garage door. ...
- Spruce up front door and porch. ...
- Kitchen and/or bathroom update. ...
- Freshen up walls. ...
- Make minor repairs. ...
- Install shutters. ...
- Check that everything works. Turn on every appliance and switch to make sure it all works properly.
If you've made an offer on a home and your lender's appraisal values the property at less than you've bid, the lender won't approve the full mortgage amount even if you qualify for it. In order for the purchase to go through, you may need to supply extra cash.
Should you walk around with the appraiser? ›
Share any neighborhood information you might have. Is there something you know about the street or community that impacts value (or will impact value)? You can walk around with the appraiser, but don't hover. It's probably best to give a little space so the appraiser is not distracted.
Should you be home when an appraiser comes? ›
During the appraisal process, a licensed appraiser will visit the home and review MLS sales data in order to render an opinion on the property's value. Unlike the home inspection, we very often advise our sellers to be present when the appraiser visits their home.
