When you’re selling your home, you’ll likely be hiring either a home appraiser or a real estate agent to value your home. They’ll give you a home valuation so that you know how much it’s worth, helping you determine what price to list your home on today’s real estate market. But, how do these home appraisers actually value your home? Here’s what they’re looking for to determine what your house is worth.
The Sales Comparison Approach
There are a few different methods that appraisers use to value properties. For houses, a common way of determining their value is with the sales comparison approach. To come up with the fair market value of your home, appraisers will compare your house to similar ones in the area which have recently been sold. The goal is to find multiple homes that are as close to your own as possible and price your home similarly. Of course, no two homes are exactly the same, so adjustments are made on the price depending on specific aspects of your own house.
What Home Appraisers are Comparing
In order to know where to price your home in comparison to others, these different aspects are taken into account:
While your house will be compared to others in the same region, the exact location can still make a big difference in price. For example, even if your home is extremely similar to the rest, your property may be more valuable because of the size of the land you own. Your home could also be in a nicer neighbourhood or closer to desirable locations such as schools and parks. These aspects would all increase the worth of your home compared to the others. On the other hand, being further from such desired amenities will have the opposite effect.
The condition of your house and how old it is will also play a big part in house appraisal. If your home is newer than the ones it’s being compared to, it will be priced higher. The better condition it’s in, the more valuable it will be. The appraiser will take into account any issues in both the interior and exterior of your home. They will be looking at the structure of the house, along with any fixtures. However, they won’t be caring about anything that isn’t attached to the house. So, anything you’re bringing with you won’t change the value of the home.
If the appraiser finds anything that needs repairs, that will negatively impact your home’s value. On the other hand, new renovations and repairs will add value to your home. Even something as simple as a fresh coat of paint can increase the property’s value.
Although comparisons between homes should always be made with the same number of bedrooms, bathrooms, and garages, other features play a part as well. Outside, the quality of landscaping is important. If you’re planning on getting a home appraisal, just fixing up your gardens can make a difference. Whether or not you have a fence and other features such as an in-ground pool will also matter.
Inside, it’s generally the quantity and quality of fixtures that are important. Aspects like the heating and cooling system, flooring, and fireplaces will all come into play. Making small renovations like upgrading your cabinet handles or adding a backsplash to the kitchen can increase your home’s value.
If you’re planning on selling your home, you are better off getting in touch with experienced local real estate agents that know the area. If you are selling a home in Collingwood Ontario, then hiring a Collingwood REALTOR® would be your best option. They can help you price your home and provide professional advice on the best renovations to complete to maximize your sale.