Factors that Can Affect the Value of Your Property

There’s far more to appraising a building, business, or property than simply adding up numbers in relation to the prevailing market and coming up with a value. The fact is that every property is unique with its own set of qualities and circumstances, and every appraisal must take a nuanced look at the big picture to determine a reliable and verifiable value. Let’s take a closer look at those factors that are most likely to affect the value of your property.

Proximity to other Locations

We’ve all heard the old adage that when it comes to property, it’s location, location, location, but this fails to mention that it’s not just where you’re located but where you are located in relation to other important properties. For example, if your property is near a major subway, metro, or bus stop, it can add to the value of your home. If it’s too close, however, this can detract from the value of your home.  Further, proximity to schools, shopping destinations, healthcare facilities, places of worship, beaches, and popular downtown destinations is also desirable. Anything that helps cut down on one’s commute can add to the value of your property – after all, life is short.

The Neighborhood

Your location in relation to useful destinations is important, but so, too, is the neighborhood in which you are located. Your appraiser will carefully consider every pertinent factor to help get a readout on the neighborhood involved. These factors can include:

• The school district
• The crime rate
• The noise level if you are close to expressways, or non-residential developments
• The availability of parking if in a major urban area
• How your neighbors maintain their property

Appraisal experts share that neighborhood nuisances directly impact the value and marketability of homes within the same area.  Surrounding housing appearance and upkeep, community amenities, proximity to transportation routes and shopping areas, all can have a direct impact on the value of homes in that neighborhood. Having a homeowner’s association can help keep the neighborhood on the up and up.

The Condition of the Property

Maintaining your home consistent with prevailing local market standards helps ensure your appraised value is in line with competing properties from the same neighborhood. However, over-improving a home, such as installing an expensive slate roof in a neighborhood where asphalt shingle is predominant, or adding a second story to a 1-story home in a neighborhood comprised primarily of single-story homes might not always result in a commensurate increase in value, relative to the cost of the amenity or feature. Balance and conformity are important considerations prior to any renovation or addition of special features.

Comparisons

Appraisers develop their opinions of value through the application of a variety of recognized techniques, the most common of which is a sales comparison approach. In this approach to value, appraisers research sales activity in the subject neighborhood to identify recent and proximate sales of comparable properties and analyze those sales to arrive at an indication of value for the subject property. Proximity alone is not a certain indication of value for the subject property, the home must be comparable to the subject in order for it to reflect an indication of what buyers are willing to pay for homes like yours. Recent real estate transactions in the area are also important, but appraisers do not overlook comparable sales that may have taken place several months ago, or longer, if those sales are the most current available, but any such sales must be analyzed to determine if adjustments are necessary for differing market conditions.

Timing

In certain markets, the timing of your valuation can affect the outcome of the appraisal.  Many buyers tend to bypass the major holidays as a time for a home purchase, and the period from March to August is generally considered high season for sales in seasonal markets. As such, if you’re looking to sell your home in November, there may be fewer current sales for an appraiser to analyze in the development of a current valuation. Further, if there is a glut of comparable properties on the market when you should decide to place your home on the market to sell, this increased inventory can impact the time necessary to sell your home, and possibly the value of the property as well.

 If You’re Ready to Have Your Property Valued, Contact Allstate Appraisal Today

Many factors can affect the value of your home or property, but working closely with an appraisal expert at Allstate Appraisal – proudly serving the Chicago area and the rest of the nation – can help ensure you get a credible and well-supported appraisal to help you maximize your property’s potential and move forward with confidence. We’re here to help, so please don’t hesitate to contact us for more information today.