What Makes a House More Valuable for Appraisal?

State of the Market

• The real estate market ebbs and flows based on the law of supply and demand. During some periods, home prices are way down, while other periods see a boom on the market as increased demand leaves buyers scrambling for available models. The appraiser takes that into account, as well as the overall prices which comparable homes are going for in the area.

State of the Neighborhood

• When evaluating the home's condition, the appraiser takes a close look at the surrounding neighborhood: the state of nearby homes, the crime rate, the presence of amenities such as parks and schools and similar issues affecting the overall quality of life in the area. The value of homes in specific neighborhoods tends to fluctuate, as some areas become extremely desirable while others deteriorate over time. The appraiser needs to take all of that into consideration before establishing a value.

Condition of the Home

• The appraiser performs a general overview of the home's condition, evaluating the state of the yard, the presence of possible water damage, the status of carpet or wall damage, the state of the wiring or plumbing and the presence of any exterior damage on the roof or walls. This doesn't constitute a formal inspection, which often requires formal civic authorities. It's merely an evaluation designed to deduce the price of the home.

Square Footage

• The appraiser measures the square footage of the home by performing calculations on the exterior walls. These calculations don't include "non-living" space such as garages, sheds, exterior buildings and the basement (though certain factors may make the basement part of the living space, depending upon specific zoning laws). Those areas are calculated separately and then factored into the home's value.

Amenities in the Home

• The appraiser evaluates the home's various amenities in an effort to determine the value. This includes the number of bedrooms, the number of bathrooms, the existence of permanent kitchen appliances such as ovens, the existence of a concrete pool or similar permanent backyard fixture, the presence of heating or air conditioning units, the presence of fireplaces, new windows, new doors, and any specific improvements made during the owner's occupancy.