Maximize Home Appraisal Values: Tips to Impress the Appraiser

Home Appraisal Value Assuming you've priced your home properly, you shouldn't have to worry when the appraiser comes to visit. But there are still some things you can do to impress an appraiser and assure that your contract will make it through the closing process with fewer rough patches.

As you probably realize, there is a difference between appraisals for mortgage loan valuation and governmental assessments for tax purposes. The latter is pretty routine, and based on different criteria. Also, in most cases, it's the "land use," structure size and type of construction rather than specific condition or amenities that affect tax valuation.

In the case of appraisals performed for lending purposes, however, subjective impressions & opinions can unfortunately have an effect.

The Basics of Home Appraisals

A current appraisal is frequently a condition for loan approval, and therefore appraisals are most often the buyer's responsibility and ordered by the lender.

Appraisals are based on real estate comps, that is, comparisons with similar properties in similar locations. Recent sales figures within a defined geographic area are used by licensed professionals, and appraisals are affected by market conditions. While appraisals always "follow the market" to some extent, in a "hot" or appreciating market, appraisal values lag behind sales prices, so it is important to assure the highest possible appraisal figure.

Seller's market? Recent sales may not support the price. Ask your agent about possible appraisal challenges!

Square footage of both the lot and the home, type and quality of construction, interior and exterior finishes, fixtures and amenities, number of bedrooms and baths, and various other considerations such as heating and cooling systems, type of utilities, and community services all play a part in determining actual valuation.

Maximizing Home Appraisal Value

There are some specific ways to ensure that your home and its features will be noted and properly valued. Here are a few simple tips to help your home shine, both before and after it goes under contract. 

Prepare the Home for Showing

Preparing Home Showing

First, just as you did when you listed your property for sale, be sure that your home and curb appeal are prepared for showing when the appraiser drives up. Just as with buyers, first impressions count. Even if you have already started packing in preparation for your move, ensure that the interior is clean and presentable.

Professional appraisers are trained to look beyond (and through) personal belongings in order to view architectural integrity and physical condition, but try to make it easier by raising the blinds, turning on lights, and assuring clear pathways from room to room. Make the beds, put dishes away, don't leave laundry on the floor.

In short, consider the appraisal appointment another "showing" and help your house show its best face. 

List Special Features of the House

Prepare a written list of special features to give to the appraiser (but by all means, don't be pushy about it). List the installation date and approximate value of any special features like a swimming pool, landscaping or irrigation system, expensive kitchen appliances, new roof or whole-house dehumidifier. Also note the age of the home, any additions or major renovation, and recent structural repairs; include such things as termite and radon inspections. 

Perform Routine Maintenance

For the maximum sales price, it's best to perform routine maintenance before listing the home. Nevertheless, be sure to complete any routine maintenance prior to the appraisal visit. If the gutters need cleaning or the shrubs need trimming, accomplish those things in advance.

Also pay attention to dripping faucets, and perform your own checks on thermostats, oven and dishwasher operation, exterior hose bibs, sagging drapery rods and loose doorknobs. Make sure all locks work, light switches perform property, and ventilation fans do their job well. Renew caulk and silicone seals; replace torn or damaged screens, and touch up peeling paint or damaged walls. 

Be Welcoming But Give the Appraiser Space

Typically, the seller isn't present during an appraisal. But if you are, when the appraiser knocks at your door, be cordial and welcoming and offer to answer any questions he or she may have. Resist the temptation to talk too much, to hover or to follow from room to room.

A professional appraiser will measure the perimeter of the home, make sketches of the property, and take many pictures of both the interior and exterior. It's all in a day's work! Stay out of the way, but be honest and truthful if there are questions.

After the Appraisal

The bottom line is that some buyers are willing to overlook minor problems, but you can be sure that your appraiser will not! If an appraisal is returned with a value lower than the contract amount, a buyer has the option to walk away from the contract. 

A low appraisal might not signal an end to the sale, but even if you make price concessions or the buyer adds additional funds, a low appraisal is problematic and will likely result in delays and a less-than-smooth path to closing.

Note also that if an appraisal is performed on your behalf, in conjunction with a refinancing application or home improvement loan, you have a right to ask for a copy of the report, even though you might have to pay a small fee for it.

If you order an appraisal to determine a home's value prior to listing the home for sale, you own the report and may keep it confidential or share it, as you wish. However, a buyer will probably still require an independent appraisal.

Dylan Snyder is a seasoned real estate professional serving the Jupiter real estate market, Palm Beach real estate market, Palm Beach Gardens real estate market, North Palm Beach real estate market, and the surrouding Palm Beach County area. Along with being a top producer in Jupiter real estate, Dylan's professionalism and expertise in luxury and waterfront real estate sets him and his team of real estate experts apart from the competition. For more information on Jupiter and Palm Beach real estate for sale, contact Dylan at (561) 951-9301.

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