Before closing on your home, a mortgage lender often orders an appraisal of your property. However, an assessment can also happen for those refinancing or insuring their homes. Whatever the reason you need for a home appraisal, you must be prepared for the process. Home appraisers look at specific details in your home and property. If you want to be ready for this inspection, here are a few tips to prepare for the process.
Full Inspection of the Exterior
When you are preparing for an appraisal, you must remember that these appraisers put your home under a microscope. They look and examine everything inside and outside of the house. On the outside, the appraiser inspects the state of your roof and foundation. The drains, decks, patios, balconies, and windows are also examined. Many of the appraisers are looking for signs of wood rot, dampness, or pest infestations.
In addition to the inspection of the property structure, the appraiser checks out the lot size and parking areas. If you don’t have a driveway or garage, you could lose some property value. The appraiser may examine the area around your home. If you live on a hill, you could have problems with the structure. An unleveled home is less appealing for buyers and lowers your resale value.
The appraiser also analyzes your home’s location and neighborhood. If the area is busy with noise or traffic, it can impact the value of the property. For homes in a trendy neighborhood, the property values can increase since buyers are trying to purchase homes in the area.
Examine Your Interior Spaces
Just like the exterior, the appraiser makes a thorough inspection of your interior spaces. You can expect every nook and cranny to be inspected on the visit. These appraisers examine the home’s overall condition. They look for those little details that can raise or lower your value, such as maintenance issues, room additions, or recent upgrades. For many inspections, your square footage and floor plan are also points under consideration for appraisal.
These professionals also appraise your home improvements. However, there can be mixed results. If you made any home improvements, those projects do not always lead to a high valuation from an appraiser. For some homes, luxury renovations will not dramatically increase a home’s value. There are a few things that you can do to boost your home. You should think about sensible renovations to your bathroom or kitchen. By finishing off an unfinished basement or adding more living space, your property values will soar. You might also want to upgrade some other components of your home, including repairing or replacing an old roof, window, or siding.
Valuing a Home
After the appraiser has completed the exterior, interior, and location analysis, they will compare your home to similar properties in the area. Before you have a final valuation, the appraiser researches any past appraisals for your home. In most cases, those appraisals play a significant role in your final valuation. When you see the final result, the report includes the home’s estimated value and the appraiser’s methods to reach those figures.
The Consequences of a Low Appraisal
If your home has a low value, then the lender may pull out the home sale or refinance deal. When you receive your appraisal, you want to review it carefully. In some cases, the appraiser can make a mistake by incorrectly numbering a room or not adding a property upgrade. You can request an appraisal appeal for those errors. For those lower appraised values, the lender may even request a second inspection of your home.
It doesn’t mean the end of your financial transaction for those homes with a low valuation estimate. You could lower the price of the house to complete the deal. Most buyers who want to purchase your home might change their offer depending on your appraisal results. Before you panic about your home appraisal, there are a couple of things you can do to prevent a low valuation.
Prepare for an Appraisal
With these few tips, you can prepare for your appraisal appointment. You have to remember that your appraiser looks at every part of the home and property. This is not the time to try and hide any flaws from this professional. The appraiser’s main priority is finding the correct value for your home.
If your home has any structural damage, you need to get it fixed immediately. Those clogged drains and missing shingles might seem like a minor problem, but they can lead to big problems for your home appraisal. You also want to present the best image for your home. This is the time to trim those overgrown hedges, cut the grass, and clear any debris away from your property.
Before your appointment, you want to complete those minor fixes. You should make sure that everything is completed by the time the appraiser comes to your home. Your home could also benefit from a deep cleaning. If you’re going to show your home in the best light, you want the house to look its best.
You also want to gather all the paperwork for major renovations, repairs, and upgrades to the home. An appraiser needs a list of these projects to help assist in determining your home’s value. With these few steps, you can help make the process easier for you and the appraiser.
Be Prepared for the Inspection
Home appraisals are a standard step for sellers and refinancers. However, these appraisals might be needed for tax or insurance reasons. While the inspection can be intimidating, there is no reason to fear the process. By knowing what the appraiser looks for in a home, you can be better prepared for your review.
Leave the Hard Work To Us
If you need to fix your roof or install new windows before a home appraisal, make sure to contact the professional team at RGB Construction. We have the expertise to complete these upgrades or
repairs for your home. You can schedule a consultation by calling 856-264-9093.