An appraisal is done when a homeowner wants to sell their property. The appraisal will provide a monetary value on the home. Appraisals are often performed by professional property appraisers hired by the home’s seller. In some cases, a buyer who is thinking about buying a property will hire their own appraiser, and other times, a lender will require it before providing the loan.
1. To Know the Value When Listing
You can’t know the price of your home without having someone calculate that price based on certain factors called comparables. This term means that the appraiser will look at other homes in your area that are close to the value of your home.
As a homeowner, you might think that a single-family home that sold next door for $300,000 would be a good indicator that your single-family home will sell for approximately the same. That home could have more or less bedrooms and bathrooms, which will impact the sale price. The appraiser will know what homes are comparable to yours.
When the appraiser comes up with the amount your home is worth, that will make it easier to price and sell your home. If you’re selling for too little, you’re doing yourself a disservice. If you’re selling for too high, your home will remain on the market for a very long time.
2. Test Run Before Selling
Before selling the home, you can walk around your home and look at it with the eyes of a buyer. You shouldn’t have an appraiser come before you’ve had a run-through of the home with an inspector or a handyman who can help point out issues.
This will save time in the process because you won’t have buyers finding issues that need to be fixed before the home can be sold. It’s a test run prior to listing your home with a real estate agent or listing it yourself.
3. It Will Lead to More Offers
“When you’ve had an appraisal done by a professional, the buyer will have more confidence in the fact that your home is worth exactly what you’re asking,” said Professional Appraisers of Texas, Inc. If you’re using advertisements to bring in more potential buyers, use the appraisal as a selling point. It’ll bring more people to your open houses too.
Along with more offers, it’ll bring in higher offers. It becomes a huge selling point in the process since buyers will know that your home was recently repaired, inspected and appraised. That work is done for them, so they won’t wonder about hidden problems. Buyers are almost always wary when buying a home since it’s such a huge investment.
Preparing for the Appraisal
In the months before the appraisal, you should have had someone walk through the home and property to find issues and repair those issues. That includes painting rooms and the exterior of the home if it’s needed. Repair holes in the drywall, fix leaking pipes and replace broken windows.
In the week prior to the appraisal, write out your detailed list of repairs and improvements. Find a recent bill and details regarding any exemptions. Provide the appraiser with any permits or property agreements you have as well as any permits you might have. If you’ve had an inspector on the property, provide the appraiser with any paperwork the inspector gave you.
Days before the appraisal, make sure the property is clean. Curb appeal matters for the appraisal too. Tidy the yard and make sure you mow the lawn. Trim hedges and trees to make the home appear well-kept.
The appraiser will walk through the entire home looking at the condition of each room as well as getting a room count. They’ll check the condition of the entire property on the inside and outside. The construction of the home will be checked to see how the foundation fares. They’ll make note of the repairs you’ve done and the modernization projects you’ve completed.
It’s important to have an appraisal done on the home. If you end up with an appraisal you’re not satisfied with, you might be able to get a new appraisal too. It’s a vital part of the process, so you should be prepared and have the home in the best shape possible.