Preparing For A Home Appraisal
Never Settle for Less Than What Your House is worth.
When selling your home, the appraised value is perhaps the most important factor in determining how much money you can get. Your home’s appraised value is a professional opinion of its fair market value based on an assessment of its condition, location, and other factors. It’s essential to have a good understanding of your home’s value before you list it on the market.
After a purchase agreement is signed, mortgage lenders typically order appraisals. Providing a buyer with a loan for a home must be worth the amount they are lending. You may have to reduce the price if the appraisal comes in lower than the agreed-upon price. In this case, you will be back at square one if the buyer’s loan does not go through. Find out how to get your asking price with the following home appraisal tips.
An appraiser's criteria for evaluating a home
Taking a closer look at what the appraiser will evaluate when visiting your home will help us get a better idea of how to prepare your house for an appraisal.
The general condition of the home is the primary factor considered by home appraisers. A house’s year of construction, style, size, and lot, along with the driveway and garage on the surrounding lot, can all be considered. In the end, an appraisal examines all the factors that can affect the value of a property.
Among the exterior components are the exterior walls, the roof, screens, downspouts, and gutters. Neighborhoods may also be considered. As far as the interior is concerned, an appraiser will observe the floors, walls, trim and permanently installed fixtures such as the fireplace. Defects and things like leaky faucets, peeling paint, or missing door handles will also be looked for by home appraisers.
How Does A Messy House Affect Appraisals?
A cluttered house will not seriously affect the property value of a house because a home appraisal looks primarily at its structure and function. However, a clean house makes evaluating a house easier. When selling a home, it’s always good to keep it tidy and ready to be viewed by visitors.
Cost of a home appraisal
There are a variety of factors that contribute to the cost of a home appraisal. In addition to the home’s size and location, the home’s property value, its condition, and the amount of time it takes to appraise the property, all of these factors can affect the appraised value. In addition to location, lack of comparable houses, damages, and fixtures can affect the cost of an appraisal.
Home appraisals for single-family homes generally cost $300 – $450, while those for larger homes or properties can cost $500 – $800.
Home appraisals take how long?
In most cases, it takes between 15 minutes and several hours to complete a home appraisal. Home appraisal reports can generally be expected within two days to one week after they are ordered. In addition to this, the overall length of time it takes to receive a report can also be affected by many factors involved in the home appraisal process. A variety of factors can influence the appraiser’s workload and the speed of the market, such as the complexity of the home and the appraiser’s workload.
What You Can Do To Increase Your Home's Appraisal Value
A home appraisal estimates the fair market value of your property. The results will depend on the size, location, condition, and housing market of your home. In addition to assessing your landscaping, driveway, roof, and flooring, an appraiser will evaluate every aspect of your home. When evaluating your property, an appraiser will consider how much similar houses in your neighborhood have sold for and the attractiveness of your location.
In order to increase the value of your home, what can you do? If you know what to focus on, you can profitably improve your home no matter where you live or what the housing market is like.
Start with your own appraisal
It is natural and understandable to be fond of your own home, but it can also be difficult to maintain objectivity when you live in it day in and day out. Being able to look at your home from an unbiased perspective allows for more effective decision-making about how to address any issues that come up over time. The best way to figure out what needs to be fixed is to have an unbiased observer conduct a walkthrough. If you order your own home appraisal, how much does it cost? If you want to avoid costly delays in the future, you should be able to hire a professional appraiser for around $200 – $400. It might also be helpful to ask someone with experience in home improvements to point out where improvements are needed.
Make the necessary repairs
Once you’ve listed the squeaky doors and leaky faucets that need attention, it’s time to pull out the tool box. The first thing you should do is repair what you can by yourself. When it comes to plumbing or electrical issues, hiring a pro is probably the best choice. Check out Quicken Loans® for more information about what an appraiser will look for and what repairs you should make.
Updates that are cost-effective
Your home’s appraised value will be affected by the quality and age of its appliances and materials. Nevertheless, you should not spend a lot of money on upgrading. You won’t make a profit from most renovations, so focus on updating things that need to be fixed right away, like a busted air conditioner, or on upgrades that are most likely to improve your property value. Kitchen and bathroom improvements such as new flooring, fixtures, and touch-ups are also excellent value-adds.
Make Your Yard Look Good
A home’s curb appeal is important. It might be worth hiring a professional landscaper if your yard is getting out of hand. It may only be necessary to tighten up things a bit if you maintain the outside of your house well. The lawn should be mowed, trees and shrubs should be trimmed, leaves raked, leaves raked, and fences and porch lights should be repaired. Also, you can improve the appearance of your home by power washing its exterior.
Preparing Your Home For An Appraisal
When you have maximized your home’s value, you should prepare it for the appraiser’s visit by spending no more than you will be reimbursed for. There are many things you can do to improve the appearance of your home without increasing the value of your property. Clean, functional surroundings can only help make a good impression on appraisers and increase the odds of a positive appraisal.
Ensure the appraiser has everything they need to understand your home’s value by applying the following finishing touches. By doing so, your appraiser will be more inclined to value your home at the high end of its market value.
Deep Clean Your House
It is important to scrub or shampoo walls and floors thoroughly. Take a moment to clean the furniture, polish the brass, and polish everything as much as you can. An appraisal of your home is likely to be more favorable if it appears to be new.
Assure everything is working as it should
In this case, nearly every light bulb, appliance, smoke alarm, carbon monoxide alarm, home security system, air conditioner, and garage door opener should be replaced. A person can make a bad impression if they flick a switch and nothing happens. Represent your home as functional and well-maintained as possible.
Your home should be staged
It is unattractive to see the dishes and laundry piled high, and dog toys scattered everywhere. Set up a bright and spacious space for your appraiser to explore during their visit. Remove furniture if a room feels cramped and pack up personal belongings. In the corners of rooms, look for dark spots and add a lamp or two to brighten up the atmosphere. It will make a home seem bigger, more appealing, and more valuable if it is tidy and well-lit.
Put your home's value in writing
When you have your home appraised, you should include all the investments you have made. You should create an upgrade highlight sheet for an appraiser to see at a glance what upgrades you’ve made. Make sure that invoices, permits, and warranties are attached. Additionally, it would be helpful if you left a copy of the floor plan, surveys, and tax appraisals.
Home Appraisals That Are Too Low: What To Do
A low appraisal can be frustrating for everyone involved if your sale price is significantly higher than the appraisal. For instance, the buyer could lose out on their loan and the house, having done the opening agent a disservice, the buyer’s agent could finish up losing money, the home loan consultant could lose out on the business, and you might not be able to sell your home. Not the best of situations, but you always have options.
Several factors will determine your best option. Do you prioritize selling quickly? Is the buyer willing to make the deal work? Make sure you have a Plan B in place by reviewing the possibilities below.
Make up the difference by negotiating with the buyer
Both of you can contribute to making a sale if you are strongly motivated. For instance, if the sale price is higher than the appraisal, you could lower the asking price by half. If the buyer does not have the money to cover the remaining half, they will need to add it to their down payment or handle more of the closing costs themselves.
If you want to sell quickly, lower your price
It’s best to drop the price to match the appraised value if the buyer is unwilling or unable to chip in more money upfront. Everything should remain on track as long as the buyer’s lender follows through with the loan. Unfortunately, this might lead to money being left on the table. In the event you do not have the time to find another buyer and go through the selling process again, this is your best bet.
Dispute an off-base appraisal
It’s a bit of a hail Mary. An appraisal review or another appraisal must be requested by the buyer, and only the lender can do so. If you can provide your own comparative market analysis or an independent appraised home that you ordered on your own, you may be able to tip the scales in your favor. Despite the low success rate of this option, there are times when an appraisal is made in error or the original results should be reversed.
Relist the home if it makes sense
Don’t need to sell right away? Would you like to sell your home for top dollar? It may be the only option you have. A better appraised home will only work if you find another buyer who can pay cash next time, or if you find another buyer who can pay cash. If the appraiser did a lousy job on the original appraisal and you couldn’t get a lender to budge, it might be best to start over.
Don't let the appraisal slip your mind from beginning to end
The sale of a home can be halted by a low home appraisal, no matter how well things are going. Throughout the home selling process, it’s important to keep appraisals in mind at all times. To avoid a stressful situation, home buyers, sellers, and appraisers must agree on the home’s value from the start. With our 3-Step Guide, you will be ready to sell if you want to.