Home values are calculated through Home Appraisals, CMAs, and BPOs.
The appraisal itself is a process that measures a home's perceived value as it relates to the market is in and considers many things like comparable sales, size, condition, key features, quality, and updates among many others. Here're the most impactful things that will impact the valuation of any property:
- Size: Your home’s total number of square feet, the number of bedrooms and bathrooms, as well as lot size impact its value. Larger homes and lot sizes are appraised for higher values.
- Location: Walkscore (walkability), TransitScore (access to public transportation), and BikeScore (bike friendly roadways) are a big impact on the price of a home. Accessibility and proximity to grocery stores, schools, and restaurants impact the perceived value of your local market, which in turn impacts the value of a property.
- Interior: The quality and condition of interior features (floors, walls, windows, doors, appliances, countertops, fixtures, and plumbing). Appraisers look for high-end materials that homebuyers want, such as hardwood floors, stainless steel appliances, and granite or stone countertops
- Exterior: Curb appeal is another important element to consider. First impressions matter, we all know that, and this applies to a home as well. Beyond the looks, appraisers look at the foundation, roof, and siding of the property. High-quality materials, such as stone or fiber-cement siding, increase your home’s value.
- Features: Popular building or unit amenities, such as a garage, fireplace, view, yard, or patio increase your home’s value.
- Market Quality of Life: Quality of life in your market as measured by Life Quality Index (LQI) is a vital and objective metric to assess the market value of any home. The quality of life is measured by considering Transportation, Daily Life, Safety, Health, Access to Sports and Leisure, Entertainment, and Demographics. These get compiled and weighted into a Scale that goes from Very Poor all the way up to Excellent.