Learn about the reasons for your lower-than-expected appraisal – and what you can do about it
It happens more than you might think. A homeowner wants to start listing their home; they’ve seen the neighborhood prices so they have a very strong idea of how much their property is worth. After all, the house across the street was listed for $450,000, and your house has more-or-less the same property size, same square footage, and same layout. Surely your house will be in the same range.
Then you get the appraisal and learn your house is worth $50,00 less than the neighbors. Why does this happen? There could be many reasons why your home is appraised at a lower price, and you may be able to do something about it.
1. You received an inaccurate appraisal
First of all, if you are seriously concerned about the cost of the appraisal, there’s nothing stopping you from getting two or three more. The person who conducted your appraisal may have made errors, or they may simply not understand the area market. Either way, if you think there was a significant mistake, you can get the home re-appraised.
2. The neighbor’s house is newer (or older)
Age in a home can make a big difference to the overall value. All things being the same, a newer home will be more desirable to buyers, and therefore the value will be higher. If the neighbor’s home is less than a decade old, while yours is in its 30s, that could be one of the reasons for a lower appraisal.
3. They have a better view of the water
Water has a magical effect on property, as homes with access or view of water are often more desirable and more valuable. While water is practically everywhere in Florida, it could be that your neighbor has a better view of a lake, pond, bay, or beach that you simply don’t. This can drive up the cost of your neighbor’s house and leave yours with a lesser value.
4. Renovations or design are specific only to you
Renovations and interior remodeling should not only be done to make you happy, they should also enhance the appeal to future buyers. You might love bright green interior paint, but few people want this option. If your remodeling was done simply to suit your specific interests, hobbies, or preferences, it could be holding back the value. Fortunately, you can usually make basic changes that make the home more universally appealing.
Work with the Naples real estate experts
Encore Realty would love to assist you with the entire real estate process. From helping with appraisals to finding the right buyer for your home, we can help achieve your goals.
Our dedicated team proudly serves North Naples, Naples, Ft. Myers, and the surrounding area, and we will be proud to use our experience and knowledge to find the right home for you and your family. Work with us and we’ll make sure you list your home properly and find the right place for your future. Contact us to get started.