What factors are involved in a house appraisal?

Asked By: Moloud Meusel | Last Updated: 6th February, 2020
Category: business and finance real estate industry
4.4/5 (26 Views . 21 Votes)
Here are 15 Factors That Influence Your Home Appraisal Value:
  • Location. First, your home appraisal value is based on the location of the home.
  • Structural Construction Materials and Updates.
  • Age of the Home.
  • Design Style of the Home.
  • Curb Appeal.
  • Number of Bedrooms.

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Also, does a messy house affect an appraisal?

Impact of Clutter Unless the amount of clutter begins to affect the structural condition of a home, it will not affect an appraisal. The cleanliness of a home also has no impact on the value. It is not uncommon for an appraiser to walk into a cluttered, messy home.

Also, what do they look for in a home appraisal for refinance? In a refinance transaction, the appraisal protects the bank by ensuring that it doesn't lend the borrower more money than the property is worth. They then examine the records of properties similar to yours—ideally, properties in your neighborhood that have sold recently.

Also know, what do appraisers look for when determining a property's value?

First, the appraiser determines the value of the lot. He estimates the cost of reproducing the home. He considers the home's age and condition to calculate depreciation. He adds the lot value to the total value of improvements and depreciated value to arrive at an accurate replacement cost.

What hurts a home appraisal?

Comparable homes or comps are one of the most important factors affecting appraisal value. An appraiser will take a close look at recently sold, nearby homes with similar bedrooms, bathrooms, updates and square footage to your home. The value of these homes can provide baselines for appraisal value.

27 Related Question Answers Found

Do appliances count in a home appraisal?

The age and condition of the home's HVAC units, appliances, and electrical and plumbing systems will be considered in the home's overall appraised value. Obviously, if these components are in bad shape, this will negatively affect the appraisal.

What increases the value of your home appraisal?

How to Increase YourHome Appraisal Value
  1. Create curb appeal. Make your home picture-perfect.
  2. Stage inside and out. Add that wow factor.
  3. Make updates that pay off. Invest in low-cost projects that increase value.
  4. Keep track of improvements. Take before and after photos.
  5. Learn what buyers want.
  6. See how it compares.

Do appraisers care if your house is clean?

Most importantly, a well maintained and clean home gives the appraiser the impression that you care for your home and upkeep it properly. Dirty windows, scuffed floors, and unclean sinks and toilets are turn offs and could draw attention away from the real items and areas of value in your home appraisal.

How do I get the highest appraisal on my house?

How to Get the Highest Appraisal On Your Home: 7 Pro Tips
  1. Request a Local Appraiser. Knowing how to accurately assess the value of a property takes an understanding of the local real estate market.
  2. Supply the Appraiser with Comps.
  3. Highlight the Neighborhood.
  4. Make High-Impact Renovations.

What are appraisers looking for?


In practical terms, appraisers are looking for any items that adversely affect the home's value, such as needed repairs, soiled carpets and plaster cracks. They also itemize the extra things that make the home desirable such as added insulation, air conditioning or a new roof.

Do appraisers take pictures?

Appraisers are required to take pictures of the exterior of your house. In the interior, they are required to take enough pictures to support the condition rating, with a special focus on bathrooms, kitchen, and other improvements.

How do I prepare my house for an appraisal?

10 Easy Ways to Prepare Your Home for Appraisal
  1. Be sure to have any safety equipment installed and working properly.
  2. Walk around your home before the appraisal with a critical eye.
  3. Inform your home appraiser of any home improvements you have done on your home.
  4. Do some sprucing up.
  5. Do some research on other homes in the neighborhood.
  6. Clean your heart out.

Do appraisers know the selling price?

The appraiser can tell you what a buyer should pay.
The appraiser will give an educated opinion on the value of the home based on training and experience. If the appraiser is good at what he or she does, then the price will usually be close to the market value of the home, but not always.

How accurate are home appraisals?

An appraisal is not the definitive market value of a home. The fair market value of a property is the price that a willing and knowledgeable buyer would pay to a willing and knowledgeable seller, when both parties are acting voluntarily and in their best interests. Appraisals can be very accurate or downright faulty.

How do you know if a house will appraise?


With this information, you can determine whether to move forward with a professional appraisal.
  1. Contact a local real estate agent and ask if he can perform a comparative market analysis.
  2. Check the value of your home with an online home value estimator.
  3. Search for nearby houses that have sold in the last 30 to 90 days.

Do appraisals usually come in at asking price?

Seems like every time there is a purchase transaction needing an appraisal, you come in just above the purchase price. If the house is selling for $200,000, you come in at $202,000. If it is selling for $450,000, you come in at $460,000.

How do appraisers determine value?

A qualified appraiser creates a report based on a visual inspection, using recent sales of similar properties, current market trends, and aspects of the home (e.g., amenities, floor plan, square footage) to determine the property's appraisal value.

How far away can an appraiser go for comps?

Comps should ideally be within one mile of the subject property, and not over any major barriers like a freeway, a river or railroad tracks.

What if my house doesn't appraise for the purchase price?

If your home doesn't appraise for the selling price, you and the buyer will both have to make some decisions. Those decisions could result in the deal moving forward, or falling off the tracks. The buyer could pay the difference out of pocket, which doesn't happen very often.

What is an appraisal in psychology?


Appraisal theory is the theory in psychology that emotions are extracted from our evaluations (appraisals or estimates) of events that cause specific reactions in different people. Essentially, our appraisal of a situation causes an emotional, or affective, response that is going to be based on that appraisal.

Are refinance appraisals higher?

An accurate appraisal could prevent the bank from basing the loan on a too-low amount. If the appraisal comes back with a higher valuation, you might be able to get more cash out in a refinancing, or get a better interest rate based on the new loan-to-value ratio.

What should you not say to an appraiser?

5 things NOT to say to an appraiser if you don't want to be accused of influencing them
  • “Use these sales, they are the best comps for this house”- There is a fine line in providing comparable sales to the appraiser.
  • “Give me the best appraisal you can”- Appraisers interpret this as “give me the highest value you can”.