A real estate agent is a person who has been licensed to work with buyers and sellers of properties, both commercial and residential. Real estate agents often choose to specialize in a certain kind of property, such as residential properties. If you’re a real estate agent, or a potential seller looking to find out how to increase a home’s value, then you’ve come to the right place.
There are two ways you can get your property appraised. And any property that is going to be put on the market soon should be appraised first.
What is a home appraisal?
An appraisal can either be conducted by an appointed appraiser from a bank or a real estate agent. Assessments can be subjective in that it’s the opinion and training of the appraiser that determines what the value of the home will be.
An appraiser can use the property values in the neighbourhood using at least six to eight comparable homes to help decide a home’s worth. Appraisers provide more accurate figures when it comes to how much a property will sell for. A real estate agent can perform competitive market analysis to let you know what a home will likely sell for. So let’s say you’re looking to buy a property in Melbourne, your real estate agent should know about the local market there extensively.
What are comparable homes?
The market value of a home is mainly subjective. This is as how much a home will sell for will depend primarily on what people are willing to pay for it. Property values change depending on the neighbourhood your home is in, the condition of the property, its age, and more factors.
Before an appraiser can come to a decision on what the value of a home is, they need to compare the property against comparable homes. These are usually homes that are similar to the property being sold and in the same neighbourhood.
Where similar properties are not available in the same neighbourhood, then the residential properties in the nearest area will be counted. Appraisers use anywhere between three to eight comparable homes to determine the market value of a residential property.
These comparable homes should be similar to the house that is being sold, such as in square feet, in-home characteristics, and features.
If you get your home appraised by a bank, then they will send forward a licensed appraiser. Bank appraisers are selected for their ability to be impartial. After comparing your home with comparable homes, they will come at an approximate market value for the property.
Can real estate agents help increase the value of a home?
Real estate agents know what appraisers are looking for when determining the value of a property. They can perform appraisals of their own and help sellers understand what the value of their home is. Armed with this knowledge, real estate agents and sellers can then work together to improve the value of the house. There are several ways to do this:
1. Increase square footage
If there are rooms or areas in your home with usable real square footage, then consider renovating those areas. These can include an attic, a basement, or even a home addition. Additional square footage can help you increase your property’s value, provided they are well maintained.
2. Improve the landscape
Real estate agents often talk about ‘curb appeal, and this is for a good reason. When appraisers or potential buyers first come to your property, your landscape is the first thing they’ll see. You need to create an excellent first impression if you want to get the best price for your home.
That’s why maintaining your landscape and ensuring that the exterior looks as lovely as the interior can help you increase your property values. A real estate agent knows what appraisers and buyers want to see when they first arrive at a property. By working together with a real estate agent, you can increase the value of their home.
3. Make sure the home is maintained.
Appraisers will look at everything from the paint job to whether there is mould on the property. Something like a termite infestation could lead to the property’s value decreases. For that reason, it’s essential to ensure that all these details are tended to before the appraiser, or a potential buyer arrives.
It’s also important to note that a potential buyer will not necessarily be looking at the same thing an appraiser sees. While an appraiser inspects the property, the HVAC system, the square footage, and what comparable homes have sold for, a buyer looks for something else. They may want to ensure that the house has proper furnishings or that the kitchen and the bathroom is up to their mark.
The good news about working with a real estate agent is that they know both what appraisers and potential buyers are looking for. This can help sellers ensure that their property is up to the standard of not just appraisers but also potential buyers. Check this Roofstock article on off market properties and find better real estate deals.
4. Appraising your home
A real estate agent can provide a preliminary appraisal of your home. This allows you to understand where your property stands. Real estate agents will look at what similar homes in the neighbourhood have sold for. This will help them get an approximate value regarding your property.
Factors such as the age of the property, the number of bathrooms and bedrooms, as well as upgrades to the home can increase the home value. Consider getting energy-efficient upgrades, or innovative home features, to increase the value of the property even more.
Real estate agents have a solid understanding of how appraisals are performed and know what potential buyers are looking for. If you want to increase your home’s value, then consider working together with your real estate agent to achieve that.
Conclusion
Real estate agents can help sellers increase their home value. They understand what appraisers, as well as potential buyers, are looking for. By performing competitive market analysis, a real estate agent can use the value of similar properties in the neighbourhood to arrive at a market value for a home.
If you want to increase the value of your home, then consider working together with a real estate agent. They know how the housing market works and what your property needs to improve its value. From carefully inspecting your home for repairs required to letting you know how comparable homes are prices higher. Real estate agents know how to increase the value of a home.
If you’re a real estate agent, then you should know all about protecting a home and maintaining it to promote property values. Your career as a realtor is also open to certain career risks, ranging from being sued by a client to potential business disruptions. E&O insurance for realtors can help you protect your career against common risk factors. If you want to learn more about real estate agent insurance or professional indemnity insurance for real estate agents, click here.
