Top 9 Reasons Appraisals Come in Low.
“3. The importance of the view
Does your home have a knockout view—or, at least, one that’s better
than the comp down the street that overlooks unsightly power lines? If
so, make sure your appraiser knows it, too. If the difference in view is
not obvious, your home could appraise for lower than expected.”
Sometimes this comes into play especially when there is water involved. Water views are some of the most valuable ways to top dollar on an appraisal. I purchased a property for a client in Bay Village that had a water view. This will only add to the value of the home.
” 4. A gorgeous basement
The house has a large, beautiful finished basement
with a bedroom and a bathroom. You’ve doubled your square footage.
Score! Unfortunately, appraisers are required to use much lower value
per square foot for space below ground.”
The key statement is adding the bathroom. That really adds value to any home. I have sold many homes that I have added bathrooms to and they sell much faster. Out of all the additions bathrooms are the best.
Finished basements need to be done especially when you have com parables that do have finished basements. They always need bathrooms because of the activity and going up and down the stairs, Parents would not like that.
“5. The extras that totally sold you aren’t selling the appraiser
Surprisingly, a pool, tennis court, and high-end landscaping are
attractive features, but they frequently don’t lead to significantly
higher valuation on appraisals. Here’s why: When an appraiser compares
two otherwise identical homes, one with the amenities and one without,
the difference in their selling price is typically not nearly as much as
the cost of adding these features—especially when the amenities are of
better quality than is standard for the area.
For example, if you spend $200,000 to install a pool, but other homes
in neighborhood have $50,000 pools, the difference in quality is not
likely to appraise well. So be prepared for a lower value than expected
if the property has one or more of these types of features.”
You need to make sure that the upgrades you are doing to your home reflect the upgrades in neighborhood. Do’t put a $15,000 bathroom in a $5,000 bathroom area if you want to max your value.
You also need to have the ammunition that will get you the desired appraisal. We do pictures and video of our upgrades to help to ensure the higher price. I have never personally missed on an appraisal. Having a system that gets appraisers you point of view is very important.
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