• Location • Square footage
• Number of bedrooms • Number of bathrooms • Age • Comparable sales data • Distance from eye sores or ear sores • Overall condition—how a home is maintained and if it’s attractive. If you’re lucky enough to have your home appraised higher than the price you’re asking, buyers think they’re getting a great deal and banks are likely to approve the loan. But if an appraisal comes in below the sales price, a bank is likely to reject the mortgage application. If the contract for sale included an appraisal contingency (and most do), the potential buyer can renegotiate the contract or walk away from the deal.
HERE'S WHAT APPRAISERS DO
Walk through: First, an appraiser visits your home. He’ll walk through the entire house, taking notes as he goes. He’s looking for upgrades and special features that add value. He’s also considering problems, like wet surfaces, mold and water leaks, that would detract from the value. The appraiser will also walk around your property, taking note of mature trees that add value and looking at your roof’s age and condition. Appraise the neighborhood: After the appraiser looks at your home, he’ll drive around and look at the neighborhood. He’ll evaluate how far/near your home is to noisy things like highways or train tracks. Does your home have the nicest view of the ocean (good for value) or is it blocked by other homes (bad for value). Dig through comparables: Ultimately, after the appraiser walks through and around your house, he’ll take a look at comparable 86
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