What Do Home Appraisers Look For, Anyway? | New American Funding

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A home appraisal can be a bit scary - there's a lot riding on it, for both home buyers and sellers. So what do home appraisals actually look at? This guide to home appraisal will let you know exactly what goes into your home's final appraisal.

Transcript of What Do Home Appraisers Look For, Anyway? | New American Funding

Page 1: What Do Home Appraisers Look For, Anyway? | New American Funding
Page 2: What Do Home Appraisers Look For, Anyway? | New American Funding

Home Appraisal Overview

During an appraisal, a certified property appraiser reviews several aspects of a home and the surrounding community to determine true market value. The appraisal plays an important role in selling or refinancing. Lenders rely on the value provided to ensure they don’t lend more than a home is really worth. In the case of refinancing, a good appraisal can qualify you for a lower rate, thanks to an improved loan-to-value ratio.

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The Neighborhood

An appraiser will often tour the neighborhood as the first step of the process, to see how your home compares to others in the area. He will also look for neighborhood amenities like community recreation areas. This tour alone may provide a good indication of how much your home is worth, or at least a range. An appraiser may also look at the Multiple Listing Service (MLS), tax assessors, county courthouse records and vendors.

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The Property

In most areas, lot size plays a significant role in determining home value. Larger lots are valued more than smaller ones. Appraisers may also look at a home’s location within the neighborhood. Houses on cul-de-sacs, for example, may be valued higher than those on busy streets. Views from the home can also play a role. Other permanent structures on the property, such as an in-ground swimming pool, sprinkler system or gazebo, also impact the value. Movable structures like above- ground swimming pools and small sheds are not included in valuation.

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The Structure

Appraisers take a good, long look at the structure of the home to ensure it is sound and in good condition. They inspect the foundation, roofing, siding and more for cracks, damages, leaks and code compliance. They also look at the quality of materials used in the structure. The higher the quality, the greater the value. Gross Living Area (GLA) To calculate how many square feet of GLA a home has, the appraiser measures the Exterior of the home, excluding non-living areas such as garages, basements or covered porches.

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The Interior

Inside the home, the appraiser considers everything that would be passed along to the next owner if you move – walls, flooring, light fixtures, plumbing, major appliances, etc. He will also account for other permanent features such as central air conditioning, smoke detectors, fireplaces, security system, solar panels and the like. Furnishings and decorations will go with you so they don’t play a role in home value. Remodeling If you’ve remodeled areas of the home or made any upgrades, point them out to the appraiser. It could help increase the appraised value.

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How You Can Make a Difference Appraisers are human so they are naturally influenced by first impressions. While they may not specifically give credit for a well maintained yard, it can shape their perception. Prior to scheduling your appraisal, you should also take a look around the home and property to identify opportunities for quick fixes. Keep Fido Away When the appraiser visits, be mindful of any especially “helpful” pets that could get in his way. Again, this may not directly influence his valuation, but you want to make his job as hassle-free as possible. For more information, read our blog post, “Appraisers: What are they looking at anyways?”

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What Do Home Appraisers Look For?

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