Whether you are planning to purchase or sell your property, it is important for you to get your property appraisal done beforehand. It is a key component of the property transaction, which allows you to estimate the true value of the house. Although the seller would be hoping for the highest bid, a property appraisal would stop him or her from setting a price that is too low. On the other hand, if you are a buyer, a house appraisal will be particularly necessary, as it will prevent you from overpaying for the property and will provide you all the information required to secure a mortgage.
An appraisal would generally include a thorough inspection of both the interior and exterior of the property, as well as comparisons with similar properties in the area. The appraiser would consider the size and condition of the property as well as include description of both serious structural problems and improvement that have been made. Nonetheless, it is pertinent to consider that the property appraisals will be different for a new property as compared to the one that has been previously owned. Below are a few factors that will distinguish between property appraisals for new and previously owned properties:
- Age of the property
The age of the property is also a key factor in determining the property appraisal value. A new house may not always be appraised a higher value as compared to a house that is old. Sometimes, new homes built ideally between the last 10 years will be less likely to have major issues and will have a higher home appraisal value. Conversely, an older property may also be appraised high because it is more likely to be located in old, well-maintained areas for a long time, adding to the overall value of the property.
- Renovations
Large renovations to properties can contribute to a higher appraisal value. Older houses available for resale will most probably have a lower value unless significant improvements and add-ons are made to them. Moreover, newly updated bathrooms and kitchens are the most important value-additions that a home owner can make to his or her property, as these renovations significantly improve the value of the property.
- Location of the property
Since the value of your property will be determined by the value of similar ones in your neighborhood, the location plays a huge role in property appraisals. It is apparent that a property that has modern materials and finishes has a higher value, especially because a new house requires far less maintenance than a previously-owned one. However, situating a new modern property in a well-established neighborhood with all the necessary amenities might give the seller an added benefit in terms of the sales price. As a seller, it is important that you take care of the necessary repairs of your property before getting it appraised. A few cosmetic upgrades might not cost you a lot, but can raise the value of your property to a great extent. This is particularly important for old properties in need of renovations prior to sale, in order to compete with the newer ones in their area.
