7 Factors That Can Affect Appraisal Value

By Fran Campbell - February 08, 2016

"How much is my home worth?" This pressing question weighs heavily on the minds of anyone who is thinking about selling property at the Lake of the Ozarks. The truth is that ultimately, your home is worth however much someone is willing to pay for it. That being said, having an idea of its official appraisal value when it comes to pricing your home and negotiating with potential buyers.

What Is The Home Appraisal?

At some point during the home buying process, the buyer will be responsible for ordering a home appraisal. This is the official process wherein a professional appraiser evaluates several different factors to determine the home's current market value. The number they come up with will be important to all involved parties:

The buyer will probably not want to pay more for the property than the appraisal amount (unless they are engaged in a bidding war with another buyer).
The seller will likely not want to sell the home for a price that is drastically lower than the appraisal value unless absolutely necessary.
The lender will typically not authorize a home loan for an amount greater than the appraisal value of the property.

How Can You Raise A Home's Appraisal Value?

As the seller hoping to make money off of the sale of your home, it is likely that you will want your home's appraisal value to be as high as possible. Here is a brief look at some of the factors that can affect appraisal value. Some of these factors are beyond your control, but you may be able to have some influence over others.

1. The Condition Of The Property

It should come as no surprise that the general condition of the property will greatly impact the home's appraisal value. The better condition the home is in, the greater its value will be. If you are looking to increase your home's value, now is the time to perform any necessary maintenance that you may have been putting off.

2. Square Footage

The size of the home will also affect its value. Typically, a home's value increases as its square footage does. If you have added on to your home since you purchased it originally, you may be able to sell it for more than your original purchase price.

3. Location, Location, Location

What are the three most important things in real estate? Location, location, location. If your home is in a desirable neighborhood with a low crime rate, good schools, and easy access to shopping and dining opportunities, its value will probably be higher.

4. Quality Of Construction

A professional appraiser will always pay close attention to the general quality of the construction used when the home was originally built. The material the foundation is made out of, the structural integrity of the home, and the wear and tear the home may have suffered are all examples of things the appraiser will evaluate.

5. Landscaping

What is the condition of the yard or grounds surrounding your property? If you have beautiful landscaping with gardens and/or flowerbeds, it may be worth more. Because buyers know that landscaping is often expensive and time-consuming, they may be more willing to pay for a property that has already had this taken care of. Effective landscaping will also boost your home's curb appeal, which can in turn lead to a higher appraisal value.

6. Comparable Properties

As we said earlier, your home is ultimately worth what someone is willing to pay for it. When determining a home's value, the appraiser will look at the actual sale prices of comparable homes in similar locations. Your home's appraisal value will probably fall in a similar price range as these comparable properties (often simply called "comps").

7. Storage Space

Storage space may be one of your home's most valuable assets. Buyers want plenty of room to store their belongings and are frequently willing to pay more for homes that offer ample space. The appraiser will evaluate your closets, attic, and basement to determine how much storage space your home offers.

How Do I Know How To Price My Home?

If you are thinking about selling your house at the Lake of the Ozarks and are wondering how to price your property, it's time to contact Fran Campbell Team. Our real estate agents in Osage Beach MO can help you evaluate your home and comparable properties to determine the best listing price. Visit our website to learn more information about our sellers resources at the Lake of the Ozarks.

Contact the Fran Campbell Team to schedule a showing!