Location Factors Which Impact Home Appraisals

Location Factors Which Impact Home Appraisals

So you have followed our tips on having the best appraisal possible and took our advice on painting and other inexpensive improvements to maximize value but there is another factor which significantly influences your valuation which you can never change. That factor is where your house is situated, or as they repetitively call it in the real estate industry, “Location. Location. Location.”

Why Is Where So Important?

Houses can be remodelled or even torn down and completely rebuilt, but it doesn’t change where the house calls home. For this reason, location can impact your valuation by thousands of dollars when comparing identical homes in different neighborhoods. To take it to the extreme to illustrate the point, imagine what your house may be worth if it was on a beach in Hawaii compared to, say, at the North Pole. Same house but such is the effect of a highly sought-after locale.

A Location Named Desire

What makes different locations more desirable than others? In many cases, it involves individual taste and circumstance. Having youngsters changes many of these factors, as well, requiring proximity to one’s employment. A desire for privacy could mean that North Pole location may work for you (Hi, Santa!) but for most of us, it is way too far to go buy bread, milk and diapers. Still, despite location desirability being rather subjective, we can identify which aspects of a location will most likely appeal to the greatest number of home buyers.

Positive Location Factors

Desirable homes usually offer the following amenities;

– A range of municipal services like:

– Close (but not TOO close!) to shopping and other retail services

-Area is perceived as quiet and safe

Negative Location Factors

-“Super Mail Box” or other unwanted infrastructure on front yard

-Close to a perceived danger such as near major power distribution lines

-Aging, rundown or over-crowded neighbourhood

-Too close to “noise makers” such as

-A low spot geographically where flooding or sewer backups may occur.

-An area with low housing demand

Knowing how important location is to a valuation, a professional appraiser will compare your house with like-sized and aged homes in the same or similar neighbourhood. The value of those homes will all have roughly the same “positive” and “negative“ boxes checked which are reflected in the valuation of all the comparables.

If you have any comments or questions about this blog or appraisal in general, we invite you to call Aura Appraisals’ fully-licensed, industry-designated staff for a free consultation at 780-987-5787 or visit Aura’s contact page.

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  • Edmonton
  • Sherwood Park
  • St. Albert
  • Fort Saskatchewan
  • Spruce Grove
  • Stony Plain
  • Leduc
  • Beaumont
  • Devon
  • Calmar
  • Rural Properties within 50 miles of Edmonton

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