The mortgages companies are confident in one way with a professional home appraisal as they are lending correct amount of money on a property. For potential homebuyer it ensures that he or she not spending more money than the actual worth. A home appraiser with around $300 will provide market value of the home with impartial view.
Neighborhood: The precise neighborhood of your home will make a difference. Either side homes to your home will be taken into the account by the appraiser. The homeowners association and its worth in maintaining the quality of the neighborhood, and the quality of the schools of your home’s neighborhood will be checked by the appraiser. If the neighborhood is, better than the comparable home nearby to yours home will get higher appraise value.
Foreclosures: Your home value will drag down when one of your neighbors had a foreclosure. According to Massachusetts Institute of Technology 2010 study, if the experienced foreclosure home is within 250 feet of your home, will count on one percent loss on the value of your home. One percent of the home value may sounds weak, but if your home value is $500,000, and one percent on this is $5,000. So it effects on several thousands of dollars of your home value when you are going to close.
Location: Every real estate agent will stress about location while someone buying through him or her. Knowing the city planners future plans in that area is very important before buying a home. A study by the University of California found that, if the power plant were near to the home, it would affect the value of the home. As per this study, if the power plant is located within the two miles of the home will decrease its value from three to seven percent. The closer the home to the plant and the larger the plant, more impact on the home value. According to Pima County study, if the landfill in your neighborhood will decrease the value of your home six to ten percent than the comparable homes. If the landfill is dumped with hazardous waste, the value of the home will be decrease by fifteen percent.
Rentals: According to Colorado State University’s Department of Economics master thesis submitted by Wendy Usrey, the rentals are shown a negative impact of sold a house within one-quarter mile. However, interestingly between one quarter mile and one half mile away single-family rental houses increase a home’s value. According to US News and World Report, depending on the density of the rentals, the home value has a threat as high as fifteen percent.
The amenities of your home will also contribute the value of your home in the appraisal. The appraiser compares the amenities and upgrades with other comparable homes. Every upgrade to your home that does not have other comparable home will add some value and that you do not have will decrease its value. Hardwood flooring, updated energy saving central air, bathrooms, and kitchen will increase the value of your home in the appraisal.