The job of a home inspector who works for a San Diego house inspection company is to assess the condition of a house or apartment with the goal of informing their client (buyer or seller) about any defects the property might have.
On the other hand, a real estate appraisal is requested by the lender in order to determine the real market value of the home in question. This will not only ensure the property isn’t priced too steeply, but also affect the final sum the lender is able to offer to the buyer.
Whether you’re a seller looking to boost the market value of your property, or a buyer trying to figure out whether your property of choice can pass the appraisal, knowing what real estate appraisers focus on is critical in order to be able to plan ahead. Read on.
What increases the value of your home appraisal?
Like home inspection, real estate appraisal can play a crucial role in the home buying or selling process. However, unlike home inspection, appraisal isn’t optional. This is because lenders use appraisals to determine the mortgage they can give the home buyer.
Here are the 8 most important factors that influence a home appraisal:
The neighborhood the house is located in and its physical position inside that neighborhood will have a considerable effect on its value.
A great neighborhood has the following traits:
- High-quality schools
- Low crime rates
- Is walkable
- Is close to a hospital, police station, and/or fire station
- Has well-maintained streetlamps, roads, etc.
- It’s not located next to a busy thoroughfare
- Nearby houses are owner-occupied rather than foreclosed, for-sale, or rented
2. Construction materials used
Newer homes that were built using modern materials, or updated to use them, are valued higher than their older counterparts.
High-value updates include:
- New roofing
- Added insulation
- New siding
- High-quality door
- High-quality windows
- Updated electrical
- Removal of hazardous materials such as asbestos
Newer homes generally have fewer problems than older properties and therefore tend to get a high appraisal. However, older homes that have been maintained well or are located in historic districts such as Old Town San Diego can also command a high value.
4. Curb appeal
The better the landscaping and the general curb appeal of a house, the better its appraisal value will be. A well-maintained yard with plants that are easy to care for is a huge bonus.
5. Bedrooms and bathrooms
Single-bedroom properties tend to sell for a lot less than ones with multiple bedrooms. Same goes for the bathrooms: having 2-3 full bathrooms will get you a higher appraisal than if you only have one.
6. Square footage
A large square footage doesn’t automatically mean the home will get a high appraisal. What matters is how much of this space is livable and usable.
7. Size of the garage
Having a garage, especially if it’s a large one, can greatly contribute to the real estate appraisal value. Same goes for easy-to-access parking spots located near the house or in the backyard.
8. Trends on the real estate market
If there are currently a lot of properties on the market, and not enough buyers, the appraisal will probably be lower. If it’s the opposite, the house will likely be appraised higher.
Where can I find a reliable San Diego house inspection company?
Selling or purchasing a piece of residential real estate is a major decision. Learning everything there is to learn about this property is vital if you want to avoid additional expenses and even hazards down the road.
At Inspectors Company, our home inspection technicians have access to cutting-edge training and state-of-the-art inspection software that allows them to quickly identify any problems that a home might have. Give us a call today.