What Devalues a Home Appraisal?

Hiring a professional to appraise the value of your home is a smart move if you’re planning on selling, refinancing or even just checking the market. An impartial third party can provide you with an honest opinion and give you visibility into whether or not your home store is still worth what you think it’s worth. An appraisal will also help protect you against a housing market that experiences significant changes in value over time. Fortunately, many things won’t devalue your home when it comes to an appraisal, but some factors can hurt its final value. Here are some things to consider and avoid before getting an appraisal.

Make sure your home is in great condition

If you’re trying to get top dollar for your home, you’ll want to make sure it’s in great condition. An appraiser will take into consideration the state of your home, and a lower value may be applied to your home simply because there might be some expensive repairs that need to be done. The good news is, that you can control this factor. If your home is in great condition, an appraiser will account for that by increasing the value of your home. You can look for ways to reduce the cost of repairs and increase the resale value of your home by taking care of smaller issues before they become major problems.

Don’t make major renovations just before an appraisal

Major renovations will impact the value of your home when you go to get your appraisal. It’s natural to want to take advantage of the equity you’ve built up in your home by making improvements. However, it’s important not to make the renovations right before an appraisal. 

An appraiser will have no choice but to account for the renovated space, even though it isn’t yet finished. If you do make renovations, ask the contractor to put a completion date at least two to three weeks away from the appraisal date. If you don’t want to wait that long, you can always reschedule the appraisal for a later date. You’ll likely only see a small dip in the value of your home, so it’s a good investment.

The neighbourhood should be stable

It’s important to know that the neighbourhood your home is located in is stable and won’t see a significant drop in value. If you live in a neighbourhood that has been experiencing a decrease in property values, an appraiser will consider that when evaluating your home. While you can’t control the health of the neighbourhood your home is located, you should be aware of any significant changes. Although an appraisal will account for any changes in the neighbourhood, it’s better to be safe than sorry.

Don’t go overboard on the renovation budget

You might think that the more money you pour into renovations, the higher your home’s value will be, but that’s not always the case. While an appraiser will account for the cost of renovations and add a certain percentage to the value of your home, he or she will also take into account the quality of the work. If you go overboard and spend too much money on renovations, the appraiser might question the quality of the work and apply a lower value to your home. 

With that being said, you don’t want to skimp on renovations either. If you purchase low-quality materials, they may become loose or break down within a few years. You’ll have to pay to repair or replace them, which will end up costing you more than the initial investment.

Be wary of the latest trends in home decor and architecture

If you’re renovating your home and want to adhere to the latest design trends, that’s great! But you’ll want to make sure that the renovation plans you have don’t go too far. If you buy the latest trends in home decor, they may be out of date by the time your home is appraised. The value of your home will likely be impacted as a result. 

A good way to avoid this is to take a look at the latest trends and then look back a few years. You’ll likely find that you can incorporate the latest trends into your home without going overboard. You’ll also avoid having to make significant renovations in the future, which may lower the appraised value of your home.

Conclusion

Getting a home appraisal is important, especially if you’re planning to sell your home, refinance or just want to know what it’s worth. There are a few things you can do to make sure the appraiser sees it in its best light. Make sure your home is in great condition, don’t make significant renovations right before the appraisal and don’t go overboard on the renovation budget. Be wary of the latest trends in home decor and architecture, and you should have no problem getting your home appraised for what it’s worth.