Appraisal is a staple process whenever you are selling a house or considering to refinance as an option. It is the appraiser’s job to determine what the current worth of your home in the market, which may be of a different value compared to what you paid for it.
If you are lucky enough, the house will gain value during the time that you have stayed there due to surrounding factors. Thus, this will make selling or refinancing your mortgage an easy task. However, if the appraiser evaluated the house and puts a lower value, a scenario that is common during the recent real-estate collapse, you may encounter trouble recovering your money when the house is sold, you are being approved for a new mortgage. These instances should remind you that there are actually simple ways to increase home appraisal value.
It is the job of the appraisers to look and identify factors as your home’s condition, square footage, amenities, and materials. From the collected information, they will try to make it marketable, allowing interested parties to come and have a look. Appraisers will research comparable properties, that have been sold recently around your area to define the current market value.
In other words it’s unlikely that you can simply charm an appraiser into thinking your home is worth a lot more than it is. Prepare a simple floral arrangement on the dining room table and the smell of cookies baking in your oven for whenever you are showing the place to potential buyers.
Ways to Increase Home Appraisal Value
There are some things you can do to ensure a considerable amount of increase in home appraisal value.
Present Your Home in its Best Look. Make sure that you will exert your best efforts to make your home in its most presentable form. You may also take note from professional home stagers that prepare houses for showing to potential buyers. Whenever necessary, clean the house, conduct minor repairs and do paint touch-ups to make it fresh and marketable. The goal is to leave an impression that should not be just second best.
Preparation Should be Both Inside and Outside. First impressions last, and it is for sure that right before the appraiser enters the house, he is already taking notes. The first thing that will be noticed by appraisers and potential buyers is the yard or the space that they will see before they enter the main door. You don’t need an exquisite landscape job, but it is better to clean the lawn and have the things around it organized. Repair the small cracks on the fences or the rust in the mailbox. These are the small things that can leave a big impact.
Collect and identify your own Comps. If you are familiar with the similar homes around the area that have been sold recently, you may notify the appraiser regarding these information. Appraisers may not be as familiar with your neighborhood as you are, that is why it should be brought to the appraiser’s attention to provide him with a clearer and more current rates.
Notify your Appraiser for Major Improvements. When you identify major improvements, you provide transparent details about your home. However, do not declare improvements with the hopes of increasing the resale value. Very few projects earn the entirety of the cost.
Prepare for Some Questions. The appraiser will ask several questions, but do not be overboard in answering them.
Check the Appraiser. You have the freedom to determine the credentials of your appraiser. The outcome of your actions to increase home appraisal value will depend on how the appraiser perceives the value. Having an appraiser that is considered a beginner or has limited experience may lead to incompetence and poor judgment.
Do Not Forget Your Rights. Even when you hired an appraiser yourself to assess the value of your home, keep in mind that the appraisal is still yours and yours alone. If you are refinancing your mortgage, and the lender is the client of the appraiser, the lender is therefore required to provide you with a copy of the appraisal together with any other estimates in home value estimates. Once you have received the written appraisal, always look for errors and also check at whether you have faith in the comps the appraiser selected are reasonably similar to your home. You can file an appeal with your lender regarding the appraisal, or ask it to order a second appraisal that serves as a re-assessment that may increase home appraisal value.
The Importance of Proper Appraisal
Ensure that you will exert your best efforts that your home is appraised for as much money as possible. However, do not over-invest in renovations and hope it will boost your home’s value. It might end up the other way, and you probably won’t recover what you spend.