Home appraisals are key for valuing your property. Whether you need a tax assessment or a loan or you’re considering the resale value of a custom home, most homeowners hope their homes will be highly valued.
Do custom homes appraise lower than traditional pre-built homes? Although the value depends on a number of factors, the answer is no. Custom home appraisals are often higher than pre-built homes, as long as they have popular features.
Here are some of the factors that could affect your custom home’s appraisal value:
Features and amenities
One of the most important factors in a custom home appraisal is what kind of features and amenities your home offers. For instance, if your home was built with energy efficiency in mind, appraisers will take that into account. Because environmental consciousness (and increasing utility bills) is of increasing concern to the general public, that should make your home more desirable and valuable.
Similarly, if you’ve built your custom home with the newest smart home automation technology and security features, that could contribute to a higher appraisal value as well.
Of course, traditional factors—like the number of bedrooms and bathrooms and square footage—play the largest role here.
When you buy a home, you don’t just look at the home itself—you look at the surrounding neighborhood and general location. How easy is it to access basic necessities like groceries, schools, banks, department stores and entertainment? Custom homes built in undesirable locations will not have the same appraisal value as a custom home with easy access to local amenities.
If you’re thinking about building a custom home, make sure to consider the location very carefully.
Livability vs. aesthetic value
Depending on your priorities, you might put a lot of effort into making your home look beautiful. For example, custom doors, stained glass windows, crown molding and other architectural features can make the house stand out. That makes your living experience more pleasant, and it might attract future buyers; however, that doesn’t mean it will necessarily have a higher financial value.
When building a custom home, always consider the use (or aesthetic) value versus the home’s actual livability. Having six luxurious spa-like bathrooms might make your daily life better, but few buyers are going to have that at the top of their must-have list.
Instead, focus on what makes the home livable. You might want a home with five bedrooms so you can expand your family and have space to work from home. You could focus on outfitting the kitchen with a spacious floorplan and top-of-the-line appliances. Alternatively, you might build a tiny home in the backyard for your aging parents or adult children. All of these features are more likely to appeal to a buyer and should increase your custom home appraisal value.
UpDwell Homes LLC offers custom homes in great communities. If you’ve been considering a new home of your own, call us today. We’re excited to show you how we can improve your living experience.