When it comes to real estate property, the appraisal process is just as important as the actual purchase. A state-certified real estate appraiser will visit the property in question and inspect it inside and out. Take a look at two things an appraiser might use to further determine the value of your property.
Unique Home Upgrades
Anytime you've made improvements or upgrades to your home, it will likely affect the appraised value. This could be anything from a new roof to updated appliances. For example, adding unique features to your home, such as a custom kitchen or an in-ground pool, will also add value to your property.
These days, "green" upgrades are also becoming increasingly popular and can positively affect your appraisal. Things like solar panels or energy-efficient appliances will not only help you save money in the long run but can also add value to your home.
Of course, it's important to keep in mind that not all upgrades will reflect positively in an appraisal. In some cases, you may not see a return on your investment when it comes time to sell. For example, if you've made major changes to the home that significantly deviate from the surrounding properties, it could actually lower the appraised value.
Maybe you've converted a bedroom into a home gym or installed a treehouse in the backyard. While these things may be great for your personal use, they might not be so appealing to potential buyers down the line.
Therefore, consider how the upgrades or changes you make to your home might affect its value before taking the plunge. Consult with a real estate professional before making any major changes to your home to ensure that it will actually have the desired effect on the value.
Current State of the Housing Market
The state of the housing market will also play a role in how your home is valued. If you live in an area where homes are selling quickly, your home will likely be worth more than if you were living in a buyers' market. Similarly, if the home prices in your area are on an upward trajectory, your home will be worth more than if they were stagnant or on the decline.
Of course, several other factors can affect the state of the housing market in your area. Things like job growth, crime rates, and the quality of schools can all have an impact. Therefore, it's important to stay up-to-date on what's happening in your local market so you have a better idea of how it might affect the value of your home.
All things considered, the state of the housing market is just one piece of the puzzle when it comes to determining the value of your home.
Speak to an appraiser to better understand what other factors are involved in a state-certified appraisal.