This guide covers must know facts on how to appraise your house to get maximum value. A house appraisal is very important when selling your home, buying a new home through a mortgage loan, or refinancing an existing mortgage. Whether you’re a homeowner, seller or buyer, you need to understand how the entire appraisal process works. John Strange, a senior mortgage loan originator at Gustan Cho Associates says the following about how to appraise your house to get maximum value:
An appraisal simply refers to an expert opinion on the value of a property in the market. If you’re applying for a mortgage to purchase a new home, the lender will require a house appraisal report first before they can give you a loan.
The lender usually sends an appraiser to the home you want to purchase to inspect it and determine its value based on the current market trends and recent sales of similar homes in the area. In the following paragraphs, we will cover must know facts on how to appraise your house to get the maximum value.
Must Know Facts on How To Appraise Your House With Low Values
If the appraisal report finds the market value to be lower than the contract price, then you have the option of adding extra money or renegotiating the contract price with your bank. That’s because lenders don’t usually lend home buyers more money than the worth of the property they want to buy. Tom Miller, the President and CEO of Thomas Miller and Company, a real estate acquisition and development company says the following about how to appraise your house to get maximum value:
On the other hand, if you’re planning to sell your property, hiring a real estate appraiser can help you know its true worth before listing it on the market.
Some of the things that appraisers look into when determining the value of your property include the condition of the home’s interior and exterior, age, the size of the land the property is sitting on, location, home improvements, amenities, and special additions among others. Here are five things you can do to increase the chances of getting a high appraisal on your home:
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Facts on How To Appraise Your House To Be Conversant With Recent Home Sales
One of the ways appraisers use to determine your property’s value is by comparing it with similar homes that were sold recently in the neighborhood. Therefore, it’s very important to know these comparable properties well if you want to appeal a lower appraisal successfully. Lisa Marie Jones, the Regional Manager of R247 Partners, LLC in Chicago says the following about how to appraise your house to get the maximum value:
If you can prove that the appraiser made a judgmental error, or a clerical error when determining the value of your home, then you have a better chance of getting the appraisal report adjusted in your favor.
Note that information about the comparable properties in your area can be found at your local county office, so you have to go there in person. If possible, ask for information on properties sold in your neighborhood in the last 6 months. Once you get what you need, go further and visit these properties personally. Who knows, maybe you might find out that the appraiser made a mistake somewhere in his evaluation. So, what happens if the appraiser fails to adjust the report in your favor?
How to Appraise Your House to Get Maximum Value: Repair What You Can
Since the appraiser takes into account the condition of your home’s interiors and exteriors, having a leaking toilet or broken windows may work against you. So, try to fix anything that needs fixing before he comes to your home. Dale Elenteny, a senior mortgage loan originator at Gustan Cho Associates says the following if you get a lower value on the appraisal of your house:
You can either decide to reduce your homes selling price to match the value in the appraisal report, or you can seek the services of a second appraiser. However, since it’s the buyer of your home who is paying for the service, so he or she may not cooperate.
The idea here is to make your property appear functional and well maintained. Doing small repairs here and there can impress the appraiser and boost your chances of getting a high appraisal.
How to Appraise Your House to Get Maximum Value: Present Your Home In The Best Way Possible
Presentation matters to both potential buyers and appraisers. Therefore, your home has to be clean, uncluttered, and tidy to make the appraiser have a good feeling when appraising. Consider cleaning every part of your home that needs cleaning. If you have visible stains on the wall, clean them or paint over them.
You also need to organize everything neatly in their respective places and keep all unnecessary things out of sight. If you want to sway appraisers further, consider sprucing up your home a little bit.
Some things you can do to improve your home’s curb appeal include mowing your yard, trimming the fence, putting container gardens at strategic points in your home, etc. Don’t forget to make your garage and backyard garden look impressive as well. If there are bushes around the garden that can hurt your property’s appraisal, remove them.
Make Home Improvements and Keep Documents To Prove Them
Another way to increase your chances of getting a high appraisal value on your property is by doing upgrades and improvements. However, note that upgrades have to be complete and permanent to count during appraisals. Some of the things you can do include upgrading your heating system, replacing your leaking roof, installing a new floor, and renovating certain rooms in your home.
Be sure to have a list of all the improvements and upgrades you’ve made in a paper, or in your computer to make the appraiser’s job easier.
Take photos before and after you do any upgrades or improvements, and keep them safe. You also need to keep receipts to prove that you spent money on the projects. Any tax documents and permits related to the home improvements should also be kept safely for the appraiser.
Must Know Facts on How To Appraise Your House Is To Be Helpful
Lastly, you should be as nice and cooperative as possible to the appraiser. When he visits, receive him warmly, and ask politely if you can share all the information you’ve collected with him before he starts his job.
If the home appraiser gives you the chance, present your information humbly, and step aside to let him continue with his work. Later, when he’s done, you can avail yourself to answer any questions that he may have concerning the house.
Overall, house appraisal remains a key component when selling your home, buying a new home through a mortgage loan, or when refinancing an existing mortgage. If you’re planning to sell soon, implementing the above tips can help your home get a high appraisal value and a better market price.
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Key Factors That Determine Your Home’s Value
Several elements come into play when your home is appraised. Understanding these can help you prepare and influence the outcome.
Location, Location, Location
The biggest factors are your home’s neighborhood and its position. Upcoming schools, parks, and public transit can raise values, while busy roads or proximity to noisy areas can lower them.
Size and Layout
Square footage is important, but so is the flow of the space. Homes with popular layouts and enough bedrooms and bathrooms for today’s buyers tend to appraise higher.
Condition and Upgrades
Well-maintained homes that show pride of ownership always do better. Modern kitchens, bathrooms, new roofs, and updated HVAC systems can add significant value.
Comparable Sales
Appraisers will research recently sold homes in your neighborhood similar in size, age, and features. These “comps” set the baseline for your home’s value.
How to Prepare Your Home for an Appraisal
You can take several steps to ensure your home looks ready to fetch the best price on appraisal day.
Declutter and Clean
A tidy and clean space lets appraisers see your home’s true condition. Make sure every room, closet, and attic looks its best.
Make Small Repairs
Fix leaky faucets, squeaky doors, and wall scuffs. These small issues add up and can raise your home’s overall impression.
Document Upgrades
Gather receipts for major improvements, such as a new roof or kitchen remodel. An appraiser considers these receipts as value-boosting evidence.
Timing Your Appraisal and Sale
A little planning goes a long way. Schedule the appraisal after major renovations are complete, before listing your home. That way, you can ensure your investment is reflected in the appraisal and the price buyers see.
- Helpful Tip: A higher appraisal value can boost your chances of securing a better loan rate if you’re refinancing.
How Location Impacts Home Value
When appraisers review homes, location is among the first details they examine. Properties in sought-after areas, where families enjoy quality schools, convenient public transport, and nearby shops, usually earn higher appraisals.
What Matters
- Nearby Amenities: Living near cafes, grocery stores, parks, or bus and train stops can cheer up your appraisal value.
- School District: Properties in well-regarded school districts attract buyers who prioritize education, so they tend to appraise higher.
- Neighborhood Upkeep: Clean streets, well-kept yards, and a friendly vibe can raise your home’s value, while homes in fading areas may earn lower appraisals.
- Explore More: How to Boost Property Value in Any Neighborhood
Getting Your Home Ready for the Appraisal
An appraisal carefully studies your home’s shape, special features, and overall likability. To help your home’s value climb, prepare it well before the appraiser’s visit.
Boost Curb Appeal First
First impressions are everything. The front of your house is the first thing the appraiser sees, so making it shine can help. Small jobs, like mowing the grass, giving the front door a fresh coat of paint, and picking up any clutter, show that the home is cared for and can raise its perceived value.
Clean and Organize Inside
Appraisers mainly check the home’s bones and systems, but a clean interior still counts. Fix any obvious issues like cracks in the walls or chips in the paint, and make sure every room feels open and tidy. A clean space lets the appraiser see the house’s potential without distractions.
Show Off Recent Upgrades
Did you remodel the kitchen, install brand-new flooring, or replace the HVAC? Make sure the appraiser sees these upgrades and talks about them. Having a short list of these improvements helps justify a higher value, so the appraiser knows the home is worth more than it was a few years ago.
Gather Key Papers Ahead of Time
Be ready with paperwork that backs up every upgrade or repair. Keep receipts, warranty papers, and invoices in one folder. These documents show the appraiser that you kept good records and took care of the home, making it easier for them to see the added value of your efforts.
Related Reading: Top Renovations That Add the Most Value to Your Home
Don’t Leave Money on the Table
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What to Do After You Receive the Appraisal Report
Once you get the appraisal report, it’s time to take the right steps. The report usually shows the estimated market value of your home, the comparable properties the appraiser examined, and any pluses or minuses noted during the home visit.
Check the Report Line by Line
Go through the appraisal report line by line to ensure everything checks out. Any wrong or missing detail can lead to a lower value, so pay close attention to:
- The appraiser’s square footage measurement.
- For comparable homes, make sure they match yours in size, age, and location.
- Any special features or upgrades in your home that set it apart?
Dispute an Appraisal You Think Is Wrong
If you believe the appraisal is off, you can request a reconsideration through your lender. When you do, include proof like extra comparable sales or records of upgrades that the appraiser missed. Remember that appraisers usually stick to their numbers unless they get strong proof to the contrary.
What to Do After a Low Home Appraisal
Getting a low home appraisal can be frustrating, but you have some choices to move forward:
- Talk to the buyer. If the buyer wants the home, they might be willing to meet the appraisal value so that you can proceed.
- Ask for a second appraisal: You can sometimes request another appraisal, but be aware that this usually means paying extra for the new appraisal.
- Lower your listing price: If you’re selling and the appraisal value is much lower, you might have to cut the price to match what the appraiser saw.
- Shop for a new lender: If you’re refinancing and the appraisal hurts your loan terms, it’s worth applying with another lender that can order a new appraisal.
Still confused about your appraisal? Contact Gustan Cho Associates for friendly tips on getting the best possible value at your appraisal!
Boost Your Appraisal Value
An appraisal can shape your next move, whether selling, buying, or refinancing. Knowing how the appraiser works and getting the house ready can help steer the number in your favor. Key items to keep in check are the home’s location, how well it’s maintained, and how thoroughly you prepare for the visit.
If you’re considering selling your home or refinancing, ensuring your place is ready for the appraisal is key to getting the best possible value. Gustan Cho Associates is ready to support you with all your mortgage questions, whether you want to decide on a sale or lower your loan payments.
Get the Appraised Value Your Home Deserves
From curb appeal to upgrades, we’ll show you how to make your appraisal count.
