A home appraisal is an objective, professional assessment done by a licensed Appraiser to determine how much a home or property is worth. When buying or selling a home, an appraisal determines whether the sale price of the home is more, less, or similar to the market value.
Here are 4 surprising factors that can affect a home appraisal:
- Location: A home’s location in terms of its neighborhood, schools, access to transportation, and proximity to amenities, will generally result in a higher appraisal value. Conversely, homes in areas with negative factors may have lower appraisal values.
- Condition of the Property: Appraisers assess the condition of a home, considering factors like the age, quality of construction, and the condition of key elements like the roof, windows, and foundation. A well-maintained property with no major issues will likely receive a higher appraisal.
- Market Trends: The current state of the real estate market will influence your home’s appraisal value. Current market conditions, such as supply and demand, interest rates, and recent sales, also influence the appraisal.
- Renovations and Upgrades: While renovations can increase the value of a home, appraisers will also consider the quality and type of work done. Renovations that increase the usable square footage, number of bedrooms, or bathrooms, or that enhance the home’s overall appeal will likely have a positive impact on the appraisal.
Read more about home appraisals in our April 2025 newsletter here and our video guide below with a step-by-step overview of the home appraisal process.