Appraisal of the neighborhood of a house you have interest in buying is very crucial since it will have a major effect on the value on the particular house you want to buy.
During the appraisal of a neighborhood, things like freeway access, distance from employment centers, stability of the neighborhood, marketing times, number of rent properties among other things that may affect the value of the house are evaluated.
Though you can improve the condition of the house, it will be very hard to improve the condition of the neighborhood, hence the importance of the neighborhood appraisal process.
The location of a home is a very important factor.
The appraiser can evaluate the neighborhood using recent sales from that neighborhood or a competing neighborhood.
If the homes are going at certain price, you might be lucky to get a house in that range or even lower.
The place where a home is situated will determine its value apart from the shape that it is in.
If the neighbors do not take good care of their homes as well as land, it will affect the value of the home that you want to buy.
You will clearly be hesitant to buy a good house that is surrounded by other houses that are not in good shape.
Or if you buy such a house, you will negotiate to get it at a much lower price.
Another thing the appraiser will need to check in a neighborhood where you are interested in buying a home is the security status of that area.
Before you a buy a home, make a point of visiting the local administration police station to check the security status of the area.
If there is a high prevalence of criminal cases, you might want to consider carefully the decision to buy a house especially for investment purposes in that area.
Also check the development status of the area.
Has there been any development over the past few years? If the level of development in the area you want to buy a home is low, the likelihood of your investment booming will be low.
Social amenities such as schools, hospitals and the transport system are very important factors to consider when you want to buy a house in a certain area.
Check if the place has reputable schools where your kids can get education and if the hospitals are reputable.
How is the transport system like? Are the roads in good shape? Or are they full of potholes? If you are buying a house for investment purposes, such factors will be very crucial to consider since they will have an effect when you want to sell the house.
Other factors to appraise in a neighborhood include things like nearness to an ocean or mountains since there are some people who are particular about the views they want to have from the house.
Also check if the house is close to a busy downtown.