What Affects Your Home Appraisal Value?

Whether you're selling your home, refinancing your mortgage, or buying a new property, the home appraisal is a critical step. But what exactly goes into determining your home's value?

Let’s break down the key factors that affect a home appraisal so you can be prepared—and possibly increase your home's worth.

1. Location, Location, Location

This age-old phrase still holds true. Your neighborhood plays a huge role in your home's appraised value.

Appraisers consider:

• School district quality

• Crime rates

• Proximity to amenities (parks, shopping, public transit)

• Road access and traffic noise

• Overall neighborhood condition and desirability

Even if your home is in perfect condition, being in a declining or low-demand area can lower its appraised value.

2. Size and Usable Space

More square footage = more value—but it's not just about total size.

Key elements:

• Total livable square feet (finished and heated areas only)

• Number of bedrooms and bathrooms

• Functional layouts (open floor plans often appraise higher)

• Finished basements, attics, and additional living space

Unfinished basements or garages may not contribute much unless they add functional value.

3. Condition and Age of the Home

A well-maintained older home can appraise higher than a neglected new one.

Appraisers look at:

• Roof age and condition

• HVAC system functionality

• Plumbing and electrical systems

• Structural integrity

• General wear and tear (cracks, stains, outdated appliances)

Homes that appear move-in ready are often valued higher than those needing obvious repairs.

4. Recent Upgrades and Renovations

Renovations can boost your home’s appraisal—but not all upgrades are equal.

High-impact renovations include:

• Kitchen and bathroom remodels

• Energy-efficient systems (windows, insulation, HVAC)

• Flooring and modern fixtures

• Smart home features

• Curb appeal improvements (landscaping, exterior painting)

Just be aware that overly custom upgrades (e.g., luxury wine cellars or unique tile choices) might not appeal to all buyers—and therefore may not translate to a higher value.

5. Comparable Sales ("Comps")

Appraisers compare your home to similar recently sold homes in your area.

They’ll look at:

• Sale prices of homes with similar size, age, and condition

• Proximity (usually within a 1-mile radius)

• Sales from the last 3–6 months

• Adjustments for differences (e.g., one more bathroom, pool, garage)

If homes nearby are selling high, that helps your appraisal. If the market has cooled or nearby homes have sold low, it can work against you.

6. Market Conditions

Appraisals are also influenced by the broader real estate market.

Market factors include:

• Buyer demand and inventory levels

• Interest rates

• Seasonal trends (spring often sees higher values)

• Economic shifts or local job growth

Even if your home is great, a soft or oversaturated market can drag down its value.

Final Tips to Prepare for an Appraisal

• Tidy up and declutter – first impressions count.

• Fix minor issues like leaking faucets, broken tiles, or chipped paint.

• Make a list of upgrades – share recent improvements and costs with the appraiser.

• Boost curb appeal – mow the lawn, clean up the yard, and touch up the exterior.

Final Thoughts

Your home’s appraisal is a mix of facts, figures, and impressions. While you can’t change the location or market conditions, you can control the presentation, maintenance, and upgrades. Understanding what affects value puts you in a stronger position—whether you're selling, buying, or refinancing.

Want to know what your home might appraise for in today’s market?Reach out—I can provide a free market analysis and help you get the most value from your property!