What affects a home appraisal?

There are many factors that affect the appraisal, condition, location, size, upgrades, lot size and age. Best things to prepare for an appraisal are to have a list of upgrades, inspect inside and out and make any repairs needed, clean up and declutter and improve curb appeal best and as practical as possible.

The most common method appraisers use in residential real estate is the comparative method. This is where they compare your home to similar homes that have recently sold. This gives them an idea of what your home would likely sell for. Some of the things they compare are the age of the home, updates, square footage, architecture type, and location. Focus on the factors you can control. The most controllable factor is updates. Updates that really matter include things like the roof, HVAC system, plumbing, electrical, etc... Carpet and paint do little compared to an updated kitchen or bathroom. Also keep in mind that when an appraiser appraises a house for a lender they are, in a sense, answering a question for the lender. That question is "Is this house worth what has been agreed to in the purchase agreement?" Its increasingly rare today to have an appraisal come in above the agreed-upon purchase price. I would encourage you to chat with a local agent that understands the market in your area and can give you some insight to what your home may fetch in the current market.