When selling your home the last thing you want to do is ruin your home’s value. You’re trying to make it as valuable as possible so people see the worth when they see the price tag. But does your home have some certain features or amenities that are actually doing the opposite? Many homeowners expect a higher appraisal value for their homes when they put it on the market. Everybody thinks their home is worth a lot more than it probably is and of course, by the tax assessor’s rules, it’s worth a lot last. But, the value of your home is only worth as much is someone is willing to pay for it so by appealing to a wide range of buyers with a lot of features that are attractive, you can up the value and increase your profit. Here are some potential reasons your home’s value may be lower than you expected.
The property doesn’t compare to others in the neighborhood.
When an appraiser appraises your property they’re looking for similar properties in your area to compare the cost. They look at features, size, location, and amenities but if your home doesn’t really match similar properties in a 1-mile radius, it can be difficult to come up with a good number. In order for homes to be truly comparable, they must have similar features and be similar in condition. This doesn’t mean that a two-bedroom home can’t sell for more than a three-bedroom, but if you want to compare apples to apples, finding homes that are similar in size and features are really the best way to do that. If you have an extremely custom home that doesn’t fit into the genre of the neighborhood, it can be difficult to value and therefore price.
The property is near undesirable landmarks.
If your home sits in the flight path of a major international Airport, sits right underneath power lines, beside a busy freeway or street, or next to a railroad, it just is not going to have the same value as a similar home in a more desirable location.
Overboard on the upgrades.
If you are upgrading your home for your own benefit, that’s fine, but if you’re upgrading your home to appeal to buyers don’t go so overboard that you have out value to your property. Spending $100,000 on home improvements doesn’t necessarily mean you’ll sell your home for an additional $100,000, especially in communities were homes are priced under $400,000. Home improvements should be based on those of similar properties in the area. If every home in the neighborhood has a swimming pool, and upgrade to a swimming pool might be a great addition but if you’re the only one of the neighborhood with a swimming pool, it might not give you the value you are looking for.
The appraisal is too low.
If you feel the appraisal comes into low it’s okay to request a second one at your own expense. Maybe the appraiser missed some things or maybe a similar house down the street sold for a higher price and now you want to redo the appraisal with a higher price comparable property. It doesn’t hurt to talk to the appraiser about the specific value that he or she has come to an if there’s something missing from the conclusion or the report it’s important to talk about it. Appraisers may be unaware of similar homes on the market but they have to also go with homes that have sold, not just the asking price. Remember, home is only worth what someone is willing to pay for it not with someone is willing to list it for.
However, even with all of these factors, there are ways to bypass issues and focus on the benefits and positive features of a home. Every home is different so if you’re looking to showcase your particular home give me a call. We can talk about current values in your area and neighborhood and find out how quickly it could potentially sell.