Some considerations to keep in mind when comparing your home value to what an appraiser sees

By
Real Estate Agent with Coldwell Banker Brokers of the Valley, Yountville Napa Valley

 If I can help you find the perfect Napa Valley property, please email me

 Curtis@NapaValleyAddress.com

  • When it comes to assessing a home’s value, homeowners tend to be overly optimistic.  However, appraisers are much more cautious, as they have to predict a realistic value for the home that the bank can use to extend credit to a buyer.
  • There are five areas where homeowners often misjudge the worth of their abode: The outside, basic systems, the basement, the market, and a remodel.
  • On the outside, if an appraiser sees overgrown bushes and chipped paint, he is likely to slice as much as 3 percent off the value of an average-size home.  According to one appraisal firm, that’s because curb appeal is important, and an unkempt yard is a sign that there may be other issues.
  • A brand-new roof generally does not affect the value an appraiser assigns a house; however, if a roof is in disrepair, a homeowner should replace it to increase the chances of a buyer making an offer.
  • A recently finished basement with a half bath can add as much as 2 percent to the value of a home, but homeowners shouldn’t expect the value to increase as much as it would with the addition of first-floor space, which can increase value by as much as 20 percent.
  • Although similar homes in the area may have recently gone into contract for more than the asking price, this will have little to no effect on the value an appraiser assigns a house.  Appraisers are bound by the data of recent comparable sales, meaning he must abide by the actual sale prices of homes in the area.
  • An expensive, custom-made, built-in entertainment center may be perfect for the current homeowners, but it could lead the appraiser to make a negative adjustment to the valuation because cost doesn’t equal value.  Renovations that are trendy will be assessed at the cost of ripping them out.  Timeless improvements, however, such as deep sinks or new wooden cabinets will add value.
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If I can help you find the perfect Napa Valley property, please contact me

Your Napa Valley Broker Extraordinaire, selling Real Estate here from its heart, Yountville

My website & blog: www.NapaValleyAddress.com

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John McCormack
Albuquerque Homes Realty * www.AlbuquerqueHomes.com - Albuquerque, NM
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Curtis you have provided some great things to keep in mind when comparing home value to what an appraiser sees.  Good job my friend!

Aug 21, 2012 11:10 AM #1
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Curtis Van Carter
Coldwell Banker Brokers of the Valley, Yountville Napa Valley - Yountville, CA
Napa Valley's Broker Extraordinaire in Yountville

John

Thank you for your kind words, cheers cvc

Aug 21, 2012 11:37 AM #2
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Patricia Kennedy
Evers & Company Real Estate, Inc. - Washington, DC
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Curtis, buyers almost always feel their home is worth more thn it really is.  That's why it is so important to head for a listing appointment with a well laid out market analysis.

Aug 21, 2012 11:40 AM #3
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Laura Allen, Lake Tahoe - Truckee Real Estate for Sale www.TahoeLauraLuxuryHomes.com
Coldwell Banker, Tahoe City, CA (530) 414-1260 - Tahoe City, CA
Tahoe Real Estate Agent Helping Buyers and Sellers

Curtis - Great information for sellers to keep in mind when they calculate their homes' value, versus how a licensed appraiser is going to approach the valuation process.  Excellent post!

Aug 21, 2012 01:52 PM #4
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Robert (Bob) Gilbert
Berkshire Hathaway HomeServices Anderson Properties - Katy, TX
Your Katy TX Real Estate Expert

Mr. Curtis,

Excellent set of comments and suggestions for home owners to read and understand. Thanks for the statistics about plus and minus on an appraisal.

Aug 21, 2012 04:20 PM #5
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Curtis Van Carter
Coldwell Banker Brokers of the Valley, Yountville Napa Valley - Yountville, CA
Napa Valley's Broker Extraordinaire in Yountville

Hi

It is so important to keep the seller's expectations to what the market for their home truly is. I still see way too stale listing out there chasing the market. Today's buyers are more knowledgeable than ever when it comes to price.

Thanks for your comments, cheers cvc

Aug 22, 2012 09:59 AM #6
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Michael Jacobs
Coldwell Banker Residential Brokerage - Pasadena, CA
PasadenaCA Real Estate Representation 818.516.4393

Good morning, Curtis --- as others have commented sellers expectations regarding value does not match the appraiser's view or perhaps, more importantly - the buyer.   When a willing buyer and willing seller meet together on all terms including price and the appraiser agrees -- now, that's nice...very nice.

Aug 26, 2012 09:25 AM #7
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Curtis Van Carter
Coldwell Banker Brokers of the Valley, Yountville Napa Valley - Yountville, CA
Napa Valley's Broker Extraordinaire in Yountville

Michael

How true you are. Thanks for stopping by and leaving a comment, cheers cvc

Aug 27, 2012 12:17 PM #8
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Curtis Van Carter

Napa Valley's Broker Extraordinaire in Yountville
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