“Top Items That Determine Home Value” by Tim Page

Location and Proximity

The appraiser will always start out with some basic criteria when looking for comparable sales. Location and proximity are two of the items that they look for. Proximity is how far the comparable homes are to your home? Most of the time, the appraiser will want to find comparable sales within ½ mile from your home If your home is located within the city and 1 mile if you are located in the suburbs.

If your home is located in a rural setting, comparable sales at around five miles are desired. I’ve had to go as far as 30 or 40 miles for comps in some areas in my market area because of the lack of comparable sales. The appraiser can go outside of the proximity distances above, but they must have a good reason.

Location is more specific. Does your home back to the railway or to water front property? How about a popular school district of popular area of town? Is your home located within a planned unit development (P.U.D.)? Other factors the appraiser will consider is location next to transmission towers, water towers, gun clubs, factories, commercial operations, etc.

Square footage

The appraiser will look for homes that have an above ground square footage of gross living area at around 20% of your home. So, for example, if your home offers 1000 square feet on the main level, the appraiser will look for homes that offer 800 to 1200 square feet. Many times, the square footage will be over 20%, but this is just a guide and if the appraiser is outside of this guide, they must explain why.

Lot size

Sometimes lot size is important and makes a big difference in the value and other times it doesn’t. It just depends on the area. The appraiser will attempt to bracket the lot size. This means that the appraiser will locate one sale with a lot smaller and one lot that is bigger than your home. The square footage of your home will usually be more important to the bank and the appraiser than the lot size.

Age of home

The appraiser will look for comparable sales that offer homes with an age of 10 years difference on either side of the subject’s age. If your home is built in the 1900’s then the appraiser will try to find comparable sales that are built within five years of either side of the age of your home.

Garage and or outbuilding

Many times garages and outbuildings can make a significant difference for the value of your home. The appraiser will locate homes with similar garage and outbuilding count to your home. If they are not able to locate a home with a garage or outbuilding similar to your home, they can go outside the market and to find a home with a similar garage. They will have to use a few homes in the immediate area so that they can compare homes in the development and outside the development.

An appraiser will review 27 or more different criteria to determine your home value. The five criteria above are some of the most important.

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