Regardless of whether you want to sell your home or you are in the process of purchasing one, it is highly likely that you will encounter a home appraisal contingency. An appraisal service can be a nerve-wracking experience, but you will be more at ease when you know exactly what to expect from it. This article will break down on everything you need to know about home appraisals.
What does a home appraisal entail?
A home appraiser is the process where a licensed home appraiser comes to our home to inspect the property to assess whether it is worth the money it is selling for. The appraiser inspects every aspect of the house and compiles the findings in a report to give the home value. As a buyer, if you’re purchasing the house with a loan, the lender is likely to order the appraisal in order to ensure that they will not the over lending more than the house is worth.
How is a home appraised?
A licensed home appraisal service sends in an expert to the property to inspect the condition it is in, the size of its lot, and how it compares to other properties of the same size on the market.
Why should a buyer care about an appraisal?
The lender of the money will base the amount of loan they give you all the appraised value of the house and not necessarily on the listed price. This way, it will be easier for the letter not to exceed the value of the house.
How can a seller maximize the appraisal value of the home
The homeowner should ensure that they fix any minor damages and finish projects that were pending. Squeaky doors should be oiled, running toilets should be fixed, and garbage disposal should be tweaked in case they have any problems. Some of these things will look inconsequential to you, but once the appraiser checks out the house, they will easily downgrade the value because of them.
The exterior of a home plays a major role in determining the overall value and you can be sure that appraiser will be judging it first. Some people feel that the exterior of the home translates to the interior of the home, so it needs to look good to invite buyers inside. Any clogged gutters should be fixed and if you have loose shingles, you should fix them as well.
In addition to all this, a home should be exceptionally clean before the appraiser gets there. Most of the time, you will find that appraisals tend to be subjective and a clean house is bound to rank higher than one perceived to be dirty. A dirty home can also be home to pests and rodents and if these are found in your home, the appraiser will include them in the report.
If you happen to be selling a home, the best thing to do is give the appraisal some space so they can check out the house by themselves. It is usually very tempting to guide them in every room showing them renovations and improvements you have made, but this is not advisable. Appraisers do this every day, so they know exactly what to look for.