How to Improve Your Appraisal
Today, we’re thinking about the reverse side of the coin when it comes to buying a new home – selling the home you’re in now. Selling a home comes with a whole process and its own challenges, but it’s a path you can navigate and even use to improve your situation.
Among the necessary steps, there is the appraisal, which is when someone hired by the buyer’s lender pokes around the house and the neighborhood to determine how much the property is worth. While that can be an intimidating prospect, there are some things you can do to increase your chances of getting a favorable appraisal.
What is an Appraisal?
First of all, let’s start with the basics. The appraisal is the part of the process when the prospective buyer’s lending institution decides how much the property is worth.
That’s accomplished by sending a professional appraiser to the property to examine it and consider the market. That person will work to find the pluses and minuses of the home, including things such as improvements and water damage.
He or she will also consider the surrounding area, checking out the neighborhood and working to find recent sales of comparable properties. This is all about establishing how much money the property is actually worth and ensuring it’s at least as much as the agreed sale price. If the appraiser’s evaluation indicates it isn’t, that could mean the sale is offer or that there may be changes required to the property or the contract.
Get a Better Appraisal
While these tips aren’t guaranteed to improve the valuation for your property, they’re certainly a good start toward bringing that estimate up.
Check out previous evaluations.
If you’re organized and know right where the home inspection and appraisal (you requested a copy, right?) are from when you purchased the home, use those as tools. Ensure any issues identified there are addressed so they don’t come up again.
Work on curb appeal.
Appraisers are influenced by first impressions just like any other human. Plus, the exterior of the property is important in its valuation. So, give the durable parts of the property a good pressure washing, clean up those garden beds, and slap on a new coat of paint if you have the time.
Invite the appraiser in.
Many appraisals are conducted exclusively from the outside, with the appraiser looking at comparable sales and evaluating the exterior of the home. By asking for a walk-through appraisal, you can ensure improvements you completed are counted.
Show your work.
Speaking of your improvements, gather any documentation you have of those and offer it to the appraiser. While high-end kitchen fixtures and a spa bathroom may be obvious, things such as replacing old wiring or improving insulation can easily be overlooked.
The experts a Journey Home Lending know what appraisers look for and we can provide you more tips as we walk with you through the process of selling your place and buying a new one. Call us today to get started!