What do Appraisers Look for When Determining the Value of a Home?

The appraisal process can be confusing. Often, it’s hard to know what criteria your appraiser is using to determine the value of a home. Here are a few areas that appraisers focus on:

? The closing date. Appraisers will look at prices from the most recent transactions in your area. With the way the market is today, closing prices on neighborhood homes from a few months ago could be drastically different than what they are today.
? The condition of the home and curb appeal.  This is to be expected, and an appraiser will find homes with similar features to help him or her determine the value of your home. The softer the market is, the more difference the condition of your home and curb appeal will make.
- Foreclosures in the neighborhood. While appraisers aren’t technically supposed to look at foreclosure trends in a neighborhood, they do. If there are many foreclosures, it could negatively affect the value of the home.
- Any incentives or concessions that builders are offering. These can lower the final price of the home, and that’s what matters to appraisers.
- The economic condition and outlook for the area. If there are plenty of similar homes for sale and the job market in your area is sour, this could negatively affect the final appraised value of your home.
- Area demographics. If your area is growing, vital, and considered safe, the appraised value of the home will be better.

There is factor that is hard to predict when it comes to home value. It is the “falling in love” factor. There are times when a potential buyer falls in love with a home, and feels attached to it and to the idea of buying it regardless of economic times, price, value or other factors.