21% of home sale contracts were delayed due to home appraisal issues in 2023. This indicates that 1 in every 5 delayed contracts faced issues during their appraisal process.
A home appraisal can determine how much is your house worth. Therefore, it is crucial to prepare for a home appraisal process to get better profits.
How Does a Home Appraisal Work?
A home appraiser evaluates a property’s value for a lender. Appraisers also compare your property with similar ones in the area. They use their findings to create an appraisal report that estimates the home’s fair market value.
The lender uses this report to decide whether they can approve the loan. A home appraisal is usually required for buying, selling, or refinancing a home. The local market can significantly impact your appraisal. A strong market will cause many properties to sell for significantly more money. This could increase your house’s appraised value.
Here are some other things that house appraisers look for:
- Location
- Size
- Number of rooms
- Square footage
- Year of construction
- Curb appeal
- Major home appliances
- Condition of home systems
6 Steps to Prepare for a Home Appraisal
Initial looks count, so you should make the extra effort to determine what needs to be done before an appraisal. Follow these basic steps to ensure a smooth appraisal process.
1. Examine the Other Properties in the Area
You can look around in your neighborhood and talk to owners of similar homes to find out if they got an appraisal recently. They can address some typical problems early on. This will help you get a better perspective on the entire home appraisal process.
2. Work on the Untidy Sections in Your House
Before your appraisal, schedule time to thoroughly clean your house. A well-kept home presents you as a responsible homeowner. Moreover, it will assist the home appraiser in highlighting all positive aspects of each feature.
3. Have a List of Your Home Improvements Ready
Make a list of all the house upgrades you have completed. Mention if you have remodeled your kitchen, installed a new HVAC system, or finished your basement. After that, provide this comprehensive list and supporting documents to the appraiser.
4. Create a Welcoming Environment
A positive first impression is crucial. Bring in as much natural light as you can by opening your windows and drapes. Also, make sure that you upgrade the curb appeal to sell your house fast.
5. Ensure That All Safety Equipment Is Installed and Functions Correctly
You should check all the security equipment installed in your house. This includes carbon monoxide, smoke, and home security alarms, among other things. Proper installation of the equipment is necessary for a better home appraisal value.
6. Keep in Mind the $500 rule.
Generally, small issues in the house will reduce your home value by $500. If several of these issues get detected, it can be heavy on your pocket.
Henceforth, it is advisable to fix problems that cost less than $500 immediately. This way you will recover that cost in your appraisal.
Bottom Line
Your home’s landscape can determine your property’s final value and can affect the appraiser’s decision. prepare strong data and a list of upgrades that can impress your appraiser.
It is important to make necessary upgrades to your home to boost its market value.
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Frequently Asked Questions
How to get your house appraised?
You can find a licensed appraiser near you. Check with your lender, search online, get referrals, and choose a local expert for reliability.
Click here to find licensed home appraisers near you.
How much does a home appraisal cost?
On average, a home appraisal in the United States can range from $350 to $600.
You can know more about the home appraisal costs.
What will the home appraiser look at?
Home appraiser will look at things like location, size and structure of your property.
