What Can I Do To Prevent A Low Appraisal
You wont be able to change everything in your home before an appraisal and, remember, some things will simply be out of your control. However, there are some steps you can take to help prevent a low appraisal. Prepare for your appraisal by reviewing an appraisal checklist and taking the following steps:
Work with your agent. If you have concerns, talk to your real estate agent and see if theres anything else you or they can do.
Improved Security For Critters
Roaches, raccoons, mice, spiders, and other pests are experts at climbing on top of the roof in order to look for a passageway and sneak in. This can spiral into property damage and several other complications that can be hard to pay out of pocket.
To prevent such a mess from occurring, a roof replacement would ensure that the houses top can withstand any damage that the critters would inflict. Some of the animals wouldnt be able to get in at all, too.
The Roofers Youll Hire
The finished outcome of the new roof will really depend on how skillful the roofing services are at installing or repairing your houses top. If you end up with a shady team of roofing contractors, that doesnt bode well for the final look of your home.
Be sure to work with reputable roofing experts in your area who understand what theyre doing. Checking out the reviews and getting a quote should help you find the ideal roofers for your property.
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Do Market Conditions Hurt My Home Appraisal
Yes. When an appraiser does an appraisal, the assumption is that youre selling now. So they need to look at how it would sell in the current market.
Since the housing market is always changing, it is possible that you could get a different appraisal value on your home depending solely on the time of year that you schedule your appraisal. If youre not on a tight schedule, it may make sense to wait to sell your home until market conditions are at their peak, usually in the spring for most markets.
What Is A Home Appraisal
The home appraisal process collects several kinds of data to arrive at a homes fair market value. Most data points fall into two categories:
The appraiser should cite both kinds of data in the home appraisal report which goes directly to the lender.
A home appraisal is not the same as a home inspection. Yes, the appraiser will check out the homes condition but only for the purposes of arriving at a valuation.
Be sure to order an independent home inspection to get a full picture of the overall condition of the home before buying.
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What Type Of New Roof Do You Want
If you take a closer look at your current roofand find that its not in good condition at all, then you should thinkabout getting a new roof. You should also think about what kind of roof youregoing to put on.
There are lots of different kinds of roofsthat you can install on your home, including asphalt shingle roofs, woodenshake roofs, metal roofs, tile roofs, and more. Certain types of roofs aregoing to increase your homes value more than others.
You might want to see what kinds of roofsother homes in your area have on them and set out to make your roof better. Youmay be able to raise your homes value significantly by going with somethinglike a metal or tile roof.
Declining Market In The Neighborhood
The appraiser is required to assess the real estate market in the neighborhood by selecting one of three choices: increasing, stable or declining.
If the property is in a neighborhood that has experienced declining values over the previous 12 months, then the lender can ask for more money down, regardless of what the final value may be.
If the borrower doesnt have the extra money for a larger down payment, then their mortgage could be declined.
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Does A New Roof Increase The Appraisal Value Of My Home
Say you want to sell your home in the foreseeable future. You go to the local agent, get the paperwork filled out, and hope your house sells. In some cases, it works, it others, it doesnt. The culprit? Many times, its not because of some underlying problem inside your home, but rather the cosmetic appearance on the outside.
Alas. If you want to sell a home for a large amount of money, a new roof replacement may be the answer.
The Roofing Material Used
On average, American homeowners spend $7,500 for new shingle roof installations. However, from the earlier indicated figures, the number could rise if you purchase costlier materials. Remember, even the cost might be higher if your home is in an upscale neighborhood.
If you stick with the national average cost, you might get a higher return than when working with expensive installations. Again, a new roof installation isnt just costly, but its time-consuming too. Spend on shingles that are uniform to your neighbors because the appraisal shall be done concerning their homes.
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A Roof Replacement Is Inevitable
While your house may be old, a few interior and exterior design projects can make your house look like new and thus worth selling. The roof is a perfect example of that, due to the fact that you can earn a profit from selling your house that has a new roof. New roofing can definitely make the house shine, but is it worth the investment. The answer is a definitive yes.
When it comes to roof replacement, youll find that the older the roof is, the more dire it is to replace it as soon as possible. Roof replacement is good for homes that are missing shingles in places and have leaks entering the house. While the old shingles that are on your roof have a lifespan of up to 20 years, new shingles nowadays can have a lifespan for up to a whopping 50 years, half of a century. The new shingles are also eco-friendly, as they can reflect harmful ultraviolet rays from the sun and can increase the insulation of your house due to how they are designed, which can then lower your heating and energy bills.
What To Do If You Arent Happy With Your Home Appraisal
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Does Remodeling Affect The Appraisal A Look Into Renovations And The Appraised Value
There are always pros and cons to any home renovation. The biggest pro is that your home will look better, and the biggest con is that it always costs too much money.
Renovation pros and cons also apply when it comes to home appraisals.
Renovations do give your home added value, but most likely, not as much as you spent on the renovations in the first place.
The question is then, are they actually worth it?
We will touch on that in a second. But first, lets talk about the problems with them and the ones that contribute the most and least value.
I want to note that this is all written from an appraisers perspective. When it comes to the practice of real estate valuation, appraisers are required to be independent, impartial, and objective. There should be no bias.
Get our free home appraisal checklist if youre reading this before your appraisal and need to know what you should prepare.
The Condition Of Your Current Roof
Typically, maintaining your roof is part of regular home maintenance. Roofs are one of the installations that add to the aesthetic appeal of your home. Therefore, a roof is one of the things prospective homeowners will notice when they come to view the house.
Even so, they expect the roof and other installations to be in perfect condition. If you have a new roof installation, you can expect them to make an offer sooner than later. Typically, prospective homeowners wish to be a cushion against extra costs that arise after the purchase.
The appraisers will help you figure out the condition of your roof. Also, theyll state how much the condition affects the entire value of the home. It does not make sense to install a new roof for a relatively new house.
In the study conducted by NARI, almost all participants had old and worn-out roofs. The risk with this kind of roofs is that they are barely functional. The bottom line is to examine the roof condition, which will help you determine the ideal action between repairs and new installations.
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How Much Value Does A New Roof Add
Your homes exterior is the first thing a buyer sees and your roof is part of that crucial first impression. A few cracked shingles may not deter most buyers, but if your entire roof is in poor condition, youll want to take care of it before listing.
While a new roof can be expensive, it might be worth it when you consider the negative impact your current roof could have on your sale:
Fewer offers: A home that needs a lot of maintenance wont appeal to buyers looking for something move-in ready, so you may get less interest in your property.
Longer sale process: It may take longer to sell because buyers may want to negotiate the sale price, or they may request a roof repair or replacement before closing.
Reduced offer price: Anticipating the cost of replacing the roof later, buyers may not be willing to pay as much for your home in its current state.
How Much Does A New Roof Cost
There are several things to consider when determining how much a new roof will cost. First, think about what materials youll use, because if youre working on a tight budget, asphalt shingles will be the go-to material, as its the lowest cost. For luxury materials, such as slate and tile, your budget will have to be able to handle $1,500 for every 10 by 10 foot area.
Next, consider the size of your roof. The larger the roof, the more material will have to be used to cover it. You also have to take labor into account, as a larger roof will take longer to complete.
Finally, how steep is your roof and are there many obstructions, such as skylights, vents, etc.? A steep roof is more difficult to work on, so that will impact labor costs. Working around obstructions will also add to the cost.
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Better Protection From Bad Weather
An old and damaged roof doesnt do your property any favors. Its supposed to be the first line of defense for the structural integrity of the whole home. Any leaks or brokenness in the midst of bad weather does the exact opposite of what its meant to do.
Getting a new roof would allow you to have better property protection in the future. Whether its rain or snow, the house and all its occupants will be snug and safe from whatever is going on outside.
What Is A Home Appraisal Value
Home appraisals are conducted by licensed or certified professionals. Theyre trained to formulate a number based on the exact value of a property. This evaluation is completely unbiased and is based on several factors, including the homes location, age, structural condition, amenities, upgrades, etc. Then, its compared to recent sales of similar homes in the neighborhood. An appraisers only agenda is to produce an objective report for clients.
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Roofing Cost Vs Value
The average cost of a new roof in the U.S. is about $7,500. This figure is for a roof on a 2,000 square foot ranch home. When it comes to cost vs. value, youre looking at between $2.40 to $3.75 per square foot. Essentially, something in the mid-range, around $3 per square foot, offers the best value.
The trick is to find a contractor that uses the right materials, provides excellent installation services and offers a competitive price. This can land you with extreme quality at a low cost, which means the cost vs. value ratio is vastly improved.
How Often Should A Roof Be Replaced
Composition Shingles: 12-20 years is the recommended replacement schedule, based on the material used. Asphalt Shingles last 15-30 years. Wood Shingles last for 20 to 25 years.
Rubber roofs last 30-50 years. Metal roofs last 50-75 years. Composition Shingles: 12-20 years is the recommended replacement schedule, based on the material used. Asphalt Shingles last 15-30 years.
Wood Shingles last for 20 to 25 years. Rubber roofs last 30-50 years. Metal roofs last 50-75 years.
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The Roofs Current Condition
What your current roof is like can really contribute to how the replacement will have to go down. Terrible roofing will take a much longer time and will require better skills in order to renew.
Again, a roofing service may recommend roof repairs in place of a roof replacement if the extent of the damage isnt too bad. Do whatever it takes to upgrade the appearance and functionality of your roof to help in increasing your appraisal.
Other Benefits Of Getting A New Roof
Revamping your roof to improve your home value is already quite the reward. However, there are several other advantages homeowners will find to getting a new roof, alongside a set of particular perks for having a higher appraisal. If you were looking for several more reasons for getting a roof replacement, here are several other benefits to consider:
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Is It A New Roof As A Selling Tool
A new roof might not boost your home value too much, but might it still help you sell your home? No doubt many real estate agents value a new roof as an effective tool for selling. In fact, 32 per cent of realtors recently used a new roof to finalize a sale, according to the NARI report. Buyers are drawn to homes with new roofs!
Outdated Systems Appliances And Interiors
Updating appliances or any major systems, like plumbing, electrical or HVAC, can be costly, so if yours are outdated, it could affect the overall value of the home. And if the interior hasnt been changed for decades, it may not appeal to buyers, which can also cause the value to decrease.
Outdated features like these could also signal that the home has not been taken care of properly and more issues lie beneath.
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Unique Or Rural Homes
If you have a unique or rural home, theres not much you can do to change that. The reason having a unique or rural home can be a problem is that it can be difficult to assign a value to unique houses or rural properties because of a lack of comparables. There are far fewer homes in rural areas, so it may be hard to find multiple homes that have sold in the area. And unique homes are called that for a reason no other home is like it. So how do you find similar homes to compare it to?
When appraisers come across this issue, they may have other options, like looking for comps in competitive neighborhoods, finding a fit between the top and bottom price inside the market or giving a range in value instead of an exact number. Of course, these estimates are less precise, which means the home could end up being undervalued.
Write Down A List Of Upgrades
It can be hard for appraisers to spot the upgrades that have been made to your home since its last appraisal. Thats why its a good idea to write a list of all the improvements youve made so you can pass it along to the appraiser. If you remember the date they were completed and how much they cost, include that information too.
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How Your Roof Affects The Appraisal Value And Salability Of Your Home
Preparing a house for purchase, and then actually selling it, can understandably be a stressful experience for homeowners. Making upgrades and improvements to your property, uncluttering your house for showings, cleaning your homethere is much work to do, not to mention you might be simultaneously shopping for a new home as well. Amid all these tasks, the one thats easy to overlook is the roof. After all, you might be more concerned about what the inside and ground-level exterior of your house look like, not whats on top.
Unfortunately, one of the first things that home inspectors check on is the roof. If theres a problem up there, the appraisal value of your house is going to suffer. If the problem is big enough, the sale might fall through. Heres a look at how your roof affects the appraisal value and salability of your home: