Local Comparisons

• The first information an appraiser considers is sales records of similar homes in your area for the past six months or so. How much was asked for each home, offers received, time on the market before sale and the final selling prices all inform overall home values for comparison, or "comps." The more similar a recently sold home is to your home, the more impact its sale value will have on the value of your appraisal. Overall values for your neighborhood and details about the house's size, layout and style are also considered.
  
  

Home Condition

• Possibly the single biggest factor influencing a home's appraisal is the physical condition of the home inside and out. An appraisal weighs factors such as your home's age, quality of initial construction, lot size, degree of remodeling, number of baths, updated features or appliances and special amenities such as fireplaces, garage, decks or patios and central air systems. Unique features such as marble countertops or in-ground pools will increase your home's appraisal value, while fewer baths or absence of a garage where those features are typical will lower your home's appraisal value.
  
  

Square Footage

• A second significant factor in your home's appraisal value is its square footage, or what appraisers call the "gross living area," or GLA. Your square footage is based on the appraiser's measurement of the exterior of your home. Areas such as finished basements, covered patios, porches and garages are not included in your home's gross living area, but are considered for the overall value they add elsewhere in the appraisal. Permanent improvements such as in-ground pools are also valued, but nonpermanent structures such as above-ground pools or sheds are not. Homes with larger GLAs will appraise at a higher value than homes with lower GLAs.
  
  

Features

• A home appraisal also reflects the value of features that may be unique to your home when compared to similar homes in your neighborhood. The number of bedrooms and bathrooms are considered, as are improvements such as garages, covered patios and in-ground pools. If your home enjoys a scenic view of woods while most of your neighbors have other homes on three sides, your view will also increase your appraisal value.
  
  

Location

• The location of your home also plays a role in establishing your home's appraisal value. Information such as your home's proximity to schools, playgrounds, shopping or hospitals is considered part of your home's value, as is the general condition of the neighborhood you live in. Proximity to positive attractions raises your appraisal value, while proximity to noisy train routes or busy highways will lower your appraisal value.
  
  

Cost Basis

• A final means of estimating your home's value is known as the "cost basis" of your home. The cost basis measurement considers the value of the land your home is on, plus the cost that would be required to rebuild your home at today's construction costs. This valuation can be especially helpful for newer homes, or for homes located in areas for which there are few comparison houses.