How to Increase Your Home’s Appraisal Value & Why You Need To
What pops into your mind when you hear the term “home value?” More than likely, you think of what buyers would be willing to pay for your home. While that number—your property’s market value—is important, another one you should be concerned about is your home’s appraisal value.
If you’re not sure what appraisal value is, you’re in the right place. We’ll not only cover what it is and why it matters but also how to increase appraisal value and reap the benefits.
What appraised value is and why it matters
Market value, which we mentioned, is based more on general, subjective opinions of buyers about your home’s worth. Appraised value, on the other hand, is an objective assessment of its value by a licensed appraiser.
This assessment is what lenders use to approve or deny home loans, and to set the amount that can be mortgaged for a property. In simpler terms, it ensures that buyers aren’t trying to borrow more money than a home is worth. By only lending up to the amount of a home’s appraisal value, a lender protects itself from risk in case a home buyer defaults.
But this information isn’t just relevant for buyers and their lenders. Since a home’s appraisal value enforces a cap on offers, understanding what goes into it and how you can increase it will help you understand how you can maximize your profit from your home sale.