5 Must Know Facts On How To Appraise Your House
5 Must Know Facts On How To Appraise Your House Was Written By Staff Writer at Gustan Cho Associates
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.
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.
5 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.
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:
5 Must Know Facts On How To Appraise Your House Is 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. 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? 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 whois paying for the service, so he or she may not cooperate.
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.
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.
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.
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.
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.
5 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 he 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 abetter market price.
May 3, 2019 - 5 min read