Key Elements of an Appraisal

Green Escrow | Home inspection

Whether buying or selling a home or evaluating the ongoing costs of ownership, an appraisal – a third party opinion – is very important to ascertain the value of the property. RealtyBizNews highlights these key factors:

  • Valuation is calculated based on a home’s size, location, condition, and features.
  • Appraisals should be current. Many lenders will not accept an appraisal report that is more than 60-90 days old.
  • Make sure that recent remodels, upgrades, and repairs are not overlooked.
  • Make sure the house is de-cluttered and tidy before the appraiser arrives.

Correctly Assessing the Value of Your Home

Green Escrow | Home inspection

It’s not hard to see the importance of getting an accurate appraisal of the value of your home before you attempt to sell. Undervalue it and you risk leaving money on the table. Overvalue it and risk having it sit on the market for months and potentially turning off would-be buyers if you’re forced to lower the asking price.

Nationwide appraisals tend to be lightly lower than the values expected by homeowners while in the Bay Area the reverse is true as homeowners underestimate the value.

While there are a number of online tools available, experts agree that hiring a professional property appraiser or having a trusted real estate broker familiar with your neighborhood is the way to go to get an accurate estimate of the value of your home.