How do appraisers determine home value?

Ever wondered what your house or a house you might buy is really worth? Lenders require an appraisal before they’ll approve a loan. As a property owner, you can always hire an appraiser to estimate your home value at any time which will help you to be better prepared when you need to buy, sell, refinance or tap into your home’s equity. Let’s see how appraisers determine the home value of flats in Kochi.

Doing a walk-through of the house is one way Home appraisers generally value a house. Afterwards, the "Sales comparison approach" & the "cost approach” methods are mostly used to evaluate a house.

The Walk-Through

Home appraisers when valuing homes consider the home's size, layout and how well it has been maintained. The appraiser inspects the inside and outside of the home & also notes amenities and upgrades that add value. The overall structure and the materials used to construct the home are

assessed for any signs of disrepair like cracks or water damage. Surrounding properties and recent sales of similar homes are also checked.

Interior

A clean, well-maintained home has better value than a cluttered one! Staging the home for appraisal can dramatically increase its value. The appraiser considers the square footage, bedrooms, building materials, flooring, light fixtures, windows, and doors.

Amenities

For luxury apartments in Kochi , amenities are a big plus! All the little extras - Central air conditioning, Smoke detectors, Security systems, Swimming Pool, Health Club etc. can increase the market value.

Upgrades

Considering flats for sale in Kerala , New Kitchen cabinets, Appliances, Countertops & recently remodeled bathrooms are major upgrades that can dramatically raise a home's price!

Home Valuation Methods

After the walk-through, the home appraiser will assign a final value to the home after analysis with these appraisal methods.

Sales Comparison Approach

A comparison with similar homes that have recently sold in surrounding neighborhoods is used to determine the market value of a home. As no two houses are exactly similar, the appraiser factors in price adjustments for all the differences with the house being appraised. If Kitchen countertops like

Granite & Laminate are compared the appraiser subtracts the value of the granite from the subject property's total value. Based on differences in lot size, amenities, fixtures, appliances, finishes, and overall upkeep, the appraiser makes adjustments for several comparisons, raising or lowering value.

Cost Approach

This approach includes the cost of replacing the entire home using local construction materials and labour is calculated using the following steps.

Things to be considered:

1. The value of the lot & cost of reproducing the home.
2. Age and condition of home to calculate depreciation.
3. Depreciation figure subtracted from the total replacement cost of the new structure.
4. Add any external improvements like pools, landscaping etc...
5. Add the lot value to the total value of improvements and depreciated value to arrive at an accurate replacement cost.

Now that you know how appraisers determine the home value of flats in Kerala, get going & upgrade your home & raise its market value! Good luck!