When it comes to your home, its value to you is probably priceless. However, when it comes time to sell the home that sentimental value will need to be put aside in order to determine a price that’s competitive, appealing to a buyer, and reflects current trends. One of the best ways to ensure that you’re pricing your home wisely is to have it appraised. But what happens if an appraiser ends up telling you the value is significantly less than what you thought it was? It could be factors outside of your control.
Appraisers determine your home’s potential value by taking into account transactions of similar homes in the area, assuming they have the same features, amenities and are in the same condition. The home that’s being compared could be much larger, or the homeowner may have a brand new bathroom or kitchen, all factors that can make the value of your home seem much less. Coincidentally, spending too much money on upgrades or improvements will not necessarily help the value either.
The location of your home can also affect its value. If for example your driveway requires backing up onto a busy road to get out, that can negatively affect the appraisal. Being too close to noisy highways or the noise of an airport, all of these may bring down the value of your home.
Remember that an appraisal is not set in stone, it reflects current trends at the time the appraisal was done. If a home in your area happens to sell a few days after an appraisal was done, that could potentially raise the value of the home. You can also consider fixing things up in areas around the home or talk to the appraiser about what changes or improvements can be made.