As the largest and most trusted home appraisal company in the nation, True Footage has seen all sorts of properties with unique features that add value. However, we have also come across properties that do not meet their true potential due to certain factors that hurt their appraisal value. In this article, we will explore some of the common factors that can hurt a home appraisal and how to avoid them.
The condition of a home is a critical factor in determining its appraisal value. Poor maintenance can significantly lower the value of a property. Therefore, it is essential to keep your property well-maintained and up-to-date to ensure that it is in good condition. If you are planning on selling your home or getting a home appraisal, make sure to keep it clean and well-maintained. This includes repairing any damages, repainting, and replacing worn-out features.
The location of a home is another factor that can impact its appraisal value. Homes located in high-end neighborhoods tend to have a higher appraisal value compared to those in low-income areas. Homes located in areas with a high crime rate, pollution, or other negative factors also tend to have lower appraisal values. Additionally, homes that are located far from essential amenities such as schools, shopping centers, and hospitals may also have a lower appraisal value.
The first impression of your home is crucial, especially when it comes to getting an appraisal. A home with poor curb appeal can lower its appraisal value. Ensure that your home's exterior looks attractive and appealing to potential buyers or appraisers. This includes keeping the lawn and garden neat and tidy, adding some color with flowers or plants, and fixing any broken features such as the fence, garage door, or roof.
Homes with outdated features tend to have lower appraisal values. These include outdated appliances, old plumbing systems, and worn-out flooring or carpet. It is essential to keep your home up to date with modern features and appliances to increase its appraisal value.
The size of a property is a crucial factor in determining its appraisal value. Homeowners sometimes make the mistake of misrepresenting their home's size when getting an appraisal. This can significantly hurt the appraisal value of the property. It is important to provide accurate information about your property's size, including the square footage of each room and the number of bathrooms.
Over-improvement is when homeowners spend too much money on home improvement projects that do not add value to the property. This can hurt the appraisal value of the property. Therefore, it is essential to consult with a professional appraiser or real estate agent before undertaking any home improvement projects. They can advise you on the best improvements that will increase the value of your property.
Desktop and hybrid appraisals are becoming increasingly popular in the real estate industry. These types of appraisals are often done without a licensed appraiser physically visiting the property. They are sometimes done using data and information from various sources. However, these appraisals can be inaccurate since they don’t always take into account the property's unique features and condition.
In conclusion, several factors can hurt a home's appraisal value, including poor maintenance, location, lack of curb appeal, outdated features, misrepresentation of property size, over-improvement, and desktop and hybrid appraisals. While there are several factors that can hurt your home appraisal, True Footage can be a helpful partner with you in all of this by providing helpful information and advice prior to the appraisal. Reach out to us as trusted local real estate appraisers for some helpful tips on what you can do to help the valuation process.
Blaine Feyen is the Head of Community at True Footage. Born and raised in Michigan, Blaine has been in the real estate and related industries for over 30 years. Buying his first duplex at 18, Blaine has been a Realtor, Lender, Investor, Builder, and 20+ year Appraiser. Blaine built and sold three appraisal firms over the years, and has coached many other Appraisers in building their companies as well. Blaine holds a fifth-degree black belt in Aikido and spends his free time doing Brazilian Jiu-Jitsu, riding motorcycles, recording podcasts, and writing.