Are you planning to sell your home some time soon? Or are you looking to take advantage of financial programs that your home’s equity can help with? Regardless, it’s helpful to know what your home is worth, and an appraisal can do that. This article will discuss what all homeowners should know about having their home appraised.
Homeowners may need an appraisal for several reasons. Common situations include preparing to sell a home, understanding available home equity, and moving forward with financial programs that may rely on a home’s value.
A home appraisal is a professional opinion of a home’s value. It is used to help estimate what a property is worth at a given time and can play an important role when homeowners are selling, borrowing, or reviewing their equity position.
Home values have risen across the nation over the past year, giving homeowners more equity in their homes. Compared to last year, home prices have increased by an average of 19.9% and now average $325,677. Considering the increase in home prices, homeowners have a chance to make more proceeds during the sale of their home.
But does it really mean that you will sell your home for more?
Here are a few considerations to keep in mind when you have your home appraised.
Several factors can affect a home’s appraised value. In general, appraisers consider the property itself, its overall condition, and the surrounding neighborhood. Market activity and comparable homes may also influence how a value is determined.
The appraised value and market value are both used when dealing with the sale of homes, but there are some differences between the two that homeowners should know about. While appraised values are determined by experts in the real estate industry, market values are driven by consumers. That means that your own could technically sell for more than what your home is appraised at.
Appraised values are based on information and the judgment of the professional appraiser doing the appraisal. On the other hand, the market value is influence by buyers. At the end of the day, your home is worth what people are willing to pay for it.
Appraisers need as much relevant information about your home as possible, especially information that is not publicly available. As such, you would be doing yourself and the appraiser a favor by providing as much relevant data about your home as possible. This will ensure that the appraiser is more accurate with the appraised value.
Home improvements and repairs are important details to share during the appraisal process. If work has been completed on the home, providing that information can help the appraiser better understand the property and evaluate it more accurately.
If there are foreclosed properties on your street or even next door, this could have an impact on your home’s appraisal. Some foreclosed homes could be boarded up, which does little for your home’s value. But even foreclosures that are not as obvious and happen quickly can leave a black mark on the value of the neighborhood.
These are just a few reasons to be cautious and stay informed during the home appraisal process. Find out more about Seattle home appraisal in the Sammamish Mortgage article, Reasons to Order an Appraisal.
If you’re in need of a home loan, Sammamish Mortgage can help. We are a mortgage company serving the Pacific Northwest region including Washington, Idaho, Colorado, and Oregon since 1992. We have been providing mortgage programs with flexible qualification criteria to borrowers since 1992. Please contact us if you have any questions or are ready to apply for a mortgage.
A home appraisal is a professional opinion of a property’s value based on its condition, features, location, and recent comparable sales.
Homeowners may need an appraisal when selling a home, refinancing, using home equity, or evaluating their property’s current value.
Yes. An appraised value can be lower than market value because an appraisal is based on an appraiser’s analysis, while market value depends on what buyers are willing to pay.
A home’s appraised value is commonly affected by its size, condition, upgrades, location, lot characteristics, and recent sales of similar nearby homes.
Provide the appraiser with relevant details about recent improvements, repairs, unique features, and any information that may not appear in public records.
They can. Upgrades and repairs may support a higher value when they improve the home’s condition, functionality, or appeal compared with similar properties.
Yes. Foreclosed properties in the neighborhood can negatively affect comparable sales and may reduce the appraised value of nearby homes.
No. The appraised value is an estimate by a licensed appraiser, while the sale price is the amount a buyer agrees to pay.
A Seattle home appraisal is influenced by recent comparable sales, neighborhood trends, housing demand, and the overall condition of nearby properties.
Yes. When home values rise, homeowners often gain equity if their mortgage balance does not increase at the same pace.
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