Selling your home takes quite a few steps such as listing photos, open houses, home inspections and one of the most important, the appraisal. Now if the appraisal doesn’t go that well, your selling price can go down considerably. The best way to understand all of this, is to understand the process and key items that can help it go well.
The mortgage lender will be ordering the appraisal through an appraisal management company. The company will then select an individual appraiser to visit your home. The average appraisal is usually about 20-45 minutes (not too bad). They will be examining the quality, condition, size, etc. of your home and assessing the value.
There are 3 major parts of the appraisal. These would be the inspection, comparables, and the final appraisal report. The inspection is pretty self – explanatory, this is when the appraiser visits your home and assess everything. The comparables, or “comps” as your agent will call it, are homes that have recently sold in your area and that are similar to yours. This will help them determine the market value of your home. The final appraisal report is what is going to make it or break it for you. This will determine the value of your home after the inspection and comparables.
Now there are some tips that will help your appraisal go the best it can be.
The outside of your home :
You want to prepare the outside just as you would for your pictures. Mowing the lawn, trimming the bushes and shrubs, putting away all tools and equipment. Getting rid of dead plants and weeds is a great idea too. One of the items that gets called out most is peeling paint on the outside of your home. Even little flakes here and there can make a big difference. Repainting certain areas, or the whole house can really help you! Another thing that is easily forgotten is damaged gutters or siding. Fixing these will go a long way. You want the outside to look AMAZING!
The inside of your home:
The best thing to before you start getting the inside, is to walk through it like you are a stranger (a really picky and critical one). Any clutter or broken items will reflect on the price, even though it is not attached to the home. This is all about appearance and the appraiser wants to see that you keep everything up to high standards.
Another nice little tip is to keep their comfort in mind. Keeping a pleasant temperature, putting away a jumping dog, or keeping your running toddler at grandmas will help make the appraisal go smoothly.
A rule of thumb for the appraisal is to go by increments of $500. They will often measure the value in a $500 incriminate, so even a minor repair can hurt you if they begin to add up.
Making sure all lights, doors, windows, ceiling fans, and connected appliances work is one of the best things you can do! They will be checking all of this and if something doesn’t work it can bring down the price, or even worse, it can bring your comparable level to older homes which can lower the price significantly.
Pointing out some recent repairs or updates you have done could potentially help you too. Taking it a step further, you could have a list typed out and ready to hand to the appraiser during the inspection.
You want to make your home, inside and out, as appealing as possible to the appraiser. However, they are highly trained and careful in what they do. So don’t stress to much!
You are one step closer to getting your home sold!