Getting your home appraised can be a nerve-wracking experience, especially if you’re looking to maximize its value. The appraisal will determine your property’s market value, affecting everything from your selling price to your refinancing options. In this article, you will learn why individuals get a home appraisal and when to get one, as well as tips to help you prepare for an appraisal and ensure your home gets the highest value possible.
In obtaining a mortgage or refinancing a property, the home appraisal occurs after you get pre-approved for a loan but before the final loan approval. Here is the typical sequence of events:
Start by thoroughly cleaning every room, including dusting, vacuuming, and scrubbing surfaces. Remove unnecessary items to make each space appear larger and more inviting. Pay special attention to key areas like the bathrooms and kitchens, as these are often appraisal focal points.
Why: A clean and tidy home makes a positive first impression and lets the appraiser see the property clearly without distractions. Clutter can obscure the home’s features and make spaces look smaller and less functional.
The home appraisal process doesn’t have a hard rule on how much a home’s price increases or decreases in value. However, appraisers often measure home value in $500 increments. If your home needs relatively minor repairs, they’ll hurt your appraisal. Fix or replace all non-functioning door latches or handles, torn window screens, and worn-out carpets. Also, make sure basic plumbing and light fixtures function correctly. While appraisers don’t thoroughly inspect plumbing, they’ll note if issues are found during their visit.
Why: Fixing small issues demonstrates that the home is well-maintained, which can positively influence the appraiser’s assessment. Neglected repairs can suggest underlying problems, reducing the home’s perceived value.
Mow the lawn, trim the bushes, clean the gutters, and power wash the exterior surfaces. Consider planting flowers or adding potted plants to make the entrance more inviting. Make sure to repair any visible damage on the exterior, such as cracked walkways or peeling paint.
Why: The home’s exterior is the first thing the appraiser sees and can set a good tone for the entire appraisal process. Good curb appeal reflects well on the overall upkeep of the property.
Create a list of all significant home improvements, including dates and costs. This could include new appliances, updated flooring, remodeled bathrooms, or energy-efficient windows. Presenting this information to the appraiser can highlight the value these upgrades add to the home.
Why: A record of upgrades and improvements can help justify a higher appraisal value. It shows the appraiser that you have invested in maintaining and enhancing the property.
Inform the appraiser of your home’s unique or desirable features, such as custom cabinetry, high-end fixtures, smart home technology, or special landscaping elements. Highlighting these features ensures they are considered in the appraisal.
Why: Unique features can set your home apart from others in the area, potentially increasing its value. Appraisers may not always notice these details without them being pointed out.
Research and inform the appraiser about your area’s comparable home sales (comps). Look at homes similar to yours in terms of style, size, year, and condition. This can give the appraiser a clearer picture of the local market and how your home compares.
Why: Recent sales of similar homes in your neighborhood provide a benchmark for the appraiser. This data can support your desired appraisal value, especially if your home is on par with or better than recently sold properties.
Inspect and address any roof issues, ensuring there are no missing shingles or broken gutters. Inspect your home’s foundation, looking for cracks or signs of settling and making necessary repairs. Make sure the garage door operates smoothly and the space is clean and organized. Additionally, have your home systems—such as HVAC, plumbing, and electrical—professionally inspected and maintained. Demonstrating that these components are in good condition can reassure the appraiser of your home’s overall structural health.
Why: Your home’s structural condition is a major factor in its appraisal value. Ensuring your garage, roof, foundation, and home systems are in good shape can prevent significant value deductions.
Arrange your furniture to maximize the space and create an inviting atmosphere. Use neutral colors and decor to appeal to a broad range of tastes. Remove personal items and excess furniture to allow the appraiser to focus on the home’s features rather than the belongings.
Why: Staging your home can make it appear more appealing and functional, positively influencing the appraisal. A well-staged home highlights its potential and helps the appraiser envision its full value.
Preparing for a home appraisal involves more than just tidying up. By taking these steps, you can ensure your home is presented in the best possible light, potentially increasing its appraised value. Clean and declutter, complete minor repairs, enhance curb appeal, document improvements, highlight unique features, provide comparable sales data, ensure structural integrity, stage your home, and understand the cost of a home appraisal. These tips will help you maximize your house’s value.
First Western Trust is an Equal Housing Lending, NMLS #477166
