How do appraisers value a home?
Before a home appraisal, it´s important for you to know the criteria used for it. Find out all about it on this post!!
When buying or selling a home it´s very common to request a home appraisal and get to know the real value of the property. Without it, it´s easy to get carried away by emotional factors when setting the price and that’s why an objective opinion always comes in handy. In addition to the usefulness it has for the seller and buyer, it´s fundamental when it comes to asking for a mortgage. Through the appraisal, the bank will evaluate the percentage of funding it can grant you.
Before getting started, the appraiser will ask for a simple note of the property record, to check that everything is in order. You will also need a copy of the deed of the house and, after that, you are ready to continue. The next step for the appraiser will be to analyse the market of houses with similar characteristics to the one to be priced and thus, decide a reasonable appraisal. Finally, the appraiser will visit the house and here comes the important part.
What will he be looking for when evaluating the property?
- Surface. He will analyse the size of the property, the rooms, bathrooms and the general distribution.
- Antiquity. Here he will get to see if the property is new or old and if it´s a listed building or has architectural value.
- State of the building. How the house is preserved, both outside and inside, will hugely influence the price. Facades, balconies, terraces,… everything is important.
Be careful, the appraiser will check if the building has passed the technical inspection (ite) at this point.
- Building materials. The type of materials used to build the house will affect the preservation and value of the property.
- Location. This factor is crucial, since a good location is key to getting a good price. If the house is in a quiet area or on the contrary, in a noisy and chaotic one the valuation will vary completely.
- Environment. Public transport, shopping centres, gardens, parks, sport areas and other surrounding factors have to be taken into account.
- Installations. Heating systems, air conditioning, stairs, elevators … Infrastructures can add or subtract a lot to a house.
- Lighting. The orientation of a home can work wonders. A house with lots of natural light and good windows will have a better valuation.
Knowing what an appraiser is looking for can position you ahead when it comes to buying, selling or borrowing. Now, you’re ready for everything !!!