Friday, November 15, 2013

Factors Affecting Your Home’s Appraisal Rate

Home appraisal is an essential part of the real estate process, whether you are selling your home or refinancing it. This process gives you an idea of how much your home is worth based on the current flow of the real estate market and the current condition of your house. Here are some of the many factors that affect whether or not you will have a favorable appraisal.

Neighborhood

One of the many factors that you can’t really change (on your own, at least) is your neighborhood. Buyers place a high value on houses that are located quite close to their basic family needs like grocery stores, banks, parks, emergency services and schools. Crime rate is another aspect of neighborhood that can significantly affect your appraisal.

Aging

Aging doesn’t just involve the actual age of your house, but also how well it has been aging. Even a beautifully kept house can be bogged down by hidden repairs or constant, recurring problems like leaks or pests.

Homes Like Yours

When it comes to real estate, comparison is one of the essential elements that make up the overall currency. Many real estate appraisers are applying Comparative Market Analysis, or CMA, which is basically research regarding how well homes very similar to yours are selling. Thankfully, you can always use other factors like renovations to negotiate the price back up in case the CMA ends up lower than what you plan to sell or refinance for.

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