Key Recommendations for a Homeowner to Maximize Appraisal Value

Home appraisals today are more important than ever when it comes to buying or refinancing a home. With housing prices starting to increase, many home sales and refinance deals are being cancelled due to low appraisals. In any market where housing prices are rising, obtaining appraisals that keep up with the increased sales prices is a challenge. Add the high level of foreclosures, the down market for the past several years and the problem grows exponentially.

There is nothing more frustrating that finding a buyer who can qualify for a loan, and then losing the deal to a low appraisal. There are steps that homeowners can take that will ensure the home appraises for the highest dollar amount possible. This will provide the loan closing the clients are looking for, whether it is a refinance or the sale of a home.

When a home is scheduled for an appraisal the first thing the homeowner needs to do is to take it seriously. Imagine they are showing the home to a potential buyer and ensure the home is presenting in its best light.

Here are a few simple things the homeowner can do to ensure the home appraises at its highest value:

Clean the house thoroughly. Make sure the home is clean, de-cluttered, carpets and windows are cleaned and the home is odor free. Appraisers will assess the condition of the home and if the home is clean, they will give you the benefit of the doubt when it comes to maintenance.

Curb appeal is as important to an appraiser as it is to a homebuyer. Make sure the lawn is mowed, the hedges trimmed and the home is neat and orderly. It is also good to have the flower beds in good condition and any needed repairs or paint completed so the home has the best curb appeal possible.

Make repairs as needed. Appraisers generally value a home in lots of $500. Things like a leaky faucet, peeling paint, broken windows and faulty light fixtures can add up quickly. This will affect how the appraiser rates value as well as the condition of the home and its affective age.

Make all areas of the home accessible, but don’t follow the appraiser around. When homeowners close off the garage, basement or attic, the appraiser cannot accurately assess the value of these spaces. Providing access will help the appraiser give an accurate assessment and will remove concerns that the homeowner is hiding something. When the appraiser is in the home, it is important to let them do their job. Ask questions at the beginning and/or end of the appraisal, but allow them to inspect the home without the homeowner in tow.

Gather information on home improvements. It is very important to support the condition of the home with evidence. Include upgrades to the home as well as structural upgrades. If the roof, electrical, or HVAC has been replaces, provide documentation so the appraiser can account those improvements into the home’s value. The same goes for improvements like kitchen and bath upgrades.   

Appraisers try to be objective as possible, but in the end the value is subjective. It is based on recent home sales in the area and the general condition of the home. The homeowner cannot impact neighboring home sales, but they can impact the condition of the home. Providing documentation, and presenting the home in the best possible light, is the most effective way to get the maximum value from the appraisal.  

LeadXL provides accurate, actionable information and analysis, resulting in increased conversion of leads from ALL sources. Lead XL was built for lenders following a clear path to success: Analyze. Revive. Enhance. Contact Lead XL today!