by Monica Perdue

Housing values have been gradually going up, while interest rates are still at record lows. As a result, you may have been debating if you should consider refinancing to lock in these record low rates.  But just because our home value is estimated at one thing online doesn’t mean that is what an appraiser will assess. Ironically, the final “value” comes down to the appraisal.

So what are the appraisers looking for? And what questions should you be asking when an appraiser is scheduled to come out to your home for that value assessment?

Lot Size: Useable land. This is where curb appeal can be helpful. The first thing an appraiser sees when arriving at your home is the lot. They are not only evaluating the size of the lot, but also the usable land including the front and back yard and how well it is kept.

Structural Integrity: Every home has an estimated life expectancy, so is your house aging well or poorly? Minor indicators of issues could include cracks in walls or ceilings, or dated windows with less than adequate seals. An appraiser will value the house and life expectancy higher for a home they consider more structurally sound and sealed.

Square Footage and Beds and Baths: Obviously the more square footage and beds and baths you have the higher your home value, but that front office space without a closet doesn’t necessarily count as an extra bedroom or the back room without a window. The appraiser will look at these things based on the age of the home and may or may not count these spaces as bedrooms. This is important because it is estimated that bedrooms yield between 50% to 70% of the price per square foot and baths yield between 60% to 90% of the price per square foot.

Local Real Estate Market Value: The appraiser will also be doing a comparative market analysis considering other similar homes sold in your area within the last 6 months.

You can take a look at the appraisal report form to get a better idea about what your appraiser will be taking notes on.  Don’t be afraid to ask some important questions as well as highlight new renovations.

Things to Ask and Note:

How familiar are they with the area? Your appraisal could be heavily based on a comparative analysis, so it’s important for the appraiser to know about the area.

What do they include in square-footage? What counts as a bedroom? These things will definitely affect how the value is calculated.

Note: Appliance and HVAC updates – you can gain value for updates such as theses and appraisers also make note of energy efficient appliances as added value. Have a list of all these updates and expenses available.

Note any renovations.  This is important to not only showcase the added value of your home interior, but also helps you possibly stand out from other comparable homes sold in the area. Have a list of all the renovations and  associated expenses.

Professional appraisers use the Uniform Standards of Professional Appraisers Practice (USPAP), which is updated annual as a standard for appraisals. To learn more, click here .

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