What is my Home Worth? The Basics of Home Valuation.

When selling your home, it’s only natural to want top price, after all, it’s an investment.  It’s important to know how the appraiser sees your home and some of the criteria he/she will use to obtain its value.

Location: location plays an important role in your home’s value before and after you’ve purchased.  For example, a view of the lake would certainly carry more value than a view of an industrial park or a busy highway.  When searching for your new home, consult with your realtor regarding new developments in the area such as factories, businesses, highways, and shopping malls.  Also, you can contact the county planning and zoning department to gain insight.

Age: the bank’s appraiser will compare your home to others built in your neighborhood within the same timeframe  give or take a few years.  Whereas age does make an impact on the value of your home, updating or renovating can make a difference.  Important: please consider hiring licensed contractors and consulting with your county when you’re planning to renovate, add-on, etc.  Not doing so may cost you money when you decide to sell your home later, especially when selling to buyers using FHA and VA loans (these loans are government insured).

Square Footage: the appraiser will also compare your home to other homes based on square footage.  Actual living space (I. e. heated space) will be used in the analysis so more the better.  In some states, Georgia, for example, the square footage in the basement isn’t counted in the Gross Living Area (GLA) because it is considered below grade.  However, the basement will have a value based on the area and whether it’s finished or unfinished.

Room Count: another element an appraiser uses to obtain value is the room count in your home.  The number of bedrooms in a home is key when buyers are home shopping.  In the state of Georgia a bedroom must contain a closet and a window.  So even if you’ve used the space as a bedroom, those two elements are required for the appraiser to count it as such and your realtor to list it as such.  When deciding to upgrade, make additions or renovate, use your discretion.  Keep in mind that what you consider a valuable addition or feature the next buyer may think differently.  To get some ideas on which upgrades may add more value to your home, please refer to the following resources:

http://www.hgtv.com/design/decorating/clean-and-organize/which-home-improvements-pay-off

http://www.hgtv.com/remodel/interior-remodel/30-tips-for-increasing-your-homes-value

http://www.bankrate.com/finance/money-guides/10-cheap-fixes-to-boost-the-value-of-your-home-1.aspx

When buying and selling real estate strategy is key and knowing your WHY, WHEN, and HOW is essential. Next Move Properties specializes in market knowledge and client service delivery. Using the most current tools and techniques, we help you score a successful real estate transaction. We build marketing strategies tailored to your needs and goals. Call us today for a free consultation at 678-570-8955 and ask for LaVetta Hudson.

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