What Appraisal Factors Can You Control?
When determining your home value, an appraiser looks at factors like location, housing trends, age, and lot size. While you can’t control these factors, you can improve things like square footage, updates, material quality, number of bedrooms, and curb appeal to improve your home’s value and appraisal.
If your goal is to maximize your home sale value, ask your Realtor® to work with Curbio to make smart pre-listing home improvement decisions. You, your Realtor, and Curbio will work together to decide which home improvement projects will have positive returns. Once we agree upon the scope of work, Curbio’s full-time, local project managers will manage and execute the entire project. The best part is that Curbio waits until closing to be paid and doesn’t charge any interest or fees—so you can increase your profit from the sale without any upfront payment.
Are Market Value and Appraised Value the Same?
The short answer is no. Your home’s market value is what a buyer is willing to pay for a property. The appraised value, however, is a professional appraiser’s opinion on what your home is worth.
Market value can be affected by factors that can change more frequently, while your appraisal is not so easily swayed. Factors like the sale price of recently sold homes, repairs & renovations, and market conditions affect market value. Of course, each buyer is different, but market value is based on what the average buyer will pay for your home.
Appraisals consider all of those factors as well. The difference is that an appraisal is a professional assessment of your home’s value—not what buyers are willing to pay for it.
The market and appraised value for your home should be similar. But sometimes the appraisal might be higher than what buyers are willing to pay. In other scenarios, buyers might value your home above the appraised value—which sounds great but can cause some issues.
What Happens If the Buyer Offers More than the Appraisal?
After you’ve accepted an offer, your buyer’s lender will order an appraisal. If the offer is higher than your home is appraised for, the buyer’s lender is unlikely to fund the full loan amount.
If your buyer’s able, they can make up the difference out of pocket. This is the best-case scenario for you because you’ll still get the full market value of your home.
If the buyer has an appraisal contingency for their offer, they can back out. If this happens, you’ll have to put your home back on the market—costing you time.
To avoid the buyer backing out, forcing you to re-list, you can negotiate the price and other concessions with them to meet somewhere in the middle. While renegotiating is a good option, it’s better to try to avoid this scenario by knowing your home’s value before listing.
How to Determine Your Home Value
To figure out your home value before listing your home, you have a variety of options to get a ballpark number.