Appraisals

What To Expect When Getting A Home Appraisal

Whether you’re buying, selling, refinancing, or tapping into your home’s equity, getting an unbiased, professional assessment of a property’s value is important. So, what do home appraisers look for?

The home appraiser uses multiple sources of information to determine the property's value. The appraiser will visit the property in person and review recently completed sales of comparable homes. Common factors inspected during the home appraisal include the following:

Property Size

Size significantly affects the final number. In general, the higher the square footage of a home, the higher its value. The appraiser will also look at the kitchen, number of bedrooms, bathrooms, and closets.

Exterior Condition

The appraiser will consider not only the exterior appearance of the home but also its condition. The appraiser will check the:

• Condition of the roof, foundation, siding, gutters, chimney, and walls, looking for signs of leaks, mold, and other safety hazards
• Lot size, including front and backyard square footage
• Pool, outdoor kitchen, deck, porch, and other amenities

Interior Condition

This refers not only to the appearance of the interior but also to the working condition of standard household assets, such as:

• Plumbing
• Electrical and HVAC systems
• Doors and windows
• Light fixtures
• Any kitchen appliances to be included in the sale

Attic, Basement, and Foundation

A finished basement or attic may impact a home's value, but these areas must meet specific requirements to be considered part of the Gross Living Area (GLA). The appraiser will also evaluate your home's foundation and its condition.

Home Renovations and Improvements

Ensure the appraiser knows about any work or upgrades that have been done to the home. This can include anything from the kitchen that was just renovated to the HVAC system installed 5 years ago.

What Can Negatively Impact A Home Appraisal

Factors such as the following could hurt a home appraisal:

• Low comps and decreasing neighborhood property values
• Poorly maintained interior or exterior
• Age of the home
• Location, such as a flood zone or busy road
• Signs of mold, insect infestation, leaks, or other safety concerns
• Issues with the home's systems, such as plumbing, electric, or HVAC
• Lack of parking
• Hazardous construction materials like lead paint or asbestos tile

Home Appraisal Checklist

If you’re refinancing, getting a home equity loan, or selling your home, how best do you prepare for the home appraisal?

1. Inspect and Repair Your Home. Walk around the inside and outside of your home and take note of any obvious damage or deferred maintenance that needs your attention. Leaks, broken systems, and damaged surfaces should all go on your list of things to repair. Inspect safety equipment like smoke alarms, carbon monoxide alarms, and home security systems. Are they all functioning, or do parts or entire systems need to be replaced? Make these repairs.
2. Review Comps. Check out recent home sales in your neighborhood. What has the price range been for homes with features and updates similar to yours? The values of these comparable homes should be similar to what your home will appraise for. This information can help you know where to focus your time, efforts, and funds. If you know a neighbor (or real estate agent) who recently sold a home in your area, contact them to find out if there were any appraisal issues or insights that they can share. If you're working with a real estate agent, you can request that they collect some comps for you and your appraiser to review. If your home has unique or uncommon features, your agent may need to get creative while staying within the guidelines for selecting comps.
3. Declutter, Clean, and Update. Remove extra clutter and clean your house. Then consider making some easy, low-cost cosmetic updates that can have a big impact, such as painting or touching up existing paint, hanging updated window treatments, replacing worn faucets, doorknobs, and cabinet hardware. If you've been planning to update your decor after you move, consider bringing in a few of the newer pieces to make the old house look fresh and modern. Downsizing or packing for a long-distance move? Ask your real estate agent if they have staging furnishings you can borrow or recommendations for a service you can use.
4. Ensure Your Outdoor Areas Are Great. Make sure that your landscaping is looking its best by mowing your lawn, trimming your trees and bushes, removing weeds and dead vegetation, adding color with inexpensive flowers, and ensuring that snow removal is neat and tidy in the winter. You'll also want to remove outdoor clutter, like yard tools and stray toys, from everywhere on your property. Consider staging any outdoor living spaces with new furniture or accessories. Power wash your home's exterior, as well as your driveway and any deck or patio surfaces. Ensure your pool is well-maintained and in safe operating condition.
5. Share your Upgrades. Document and tell your home appraiser about the improvements you've made to your home and any applicable permit information. Inform them of upgrades like new features that you have added (security system, updated HVAC units), exterior improvements (siding, gutters, or a new roof), and high-value room remodels (kitchens and bathrooms).
6. Know Your Neighborhood. Inform the appraiser of any recent improvements in your neighborhood, such as new or highly rated schools, parks, transportation enhancements, shopping, and other beneficial amenities.
7. Stay Focused. It's important to remember not to go overboard and take on too many projects. Invest your time, money, and effort only on issues that need attention. If you're getting an appraisal for a home you're selling, you most likely already have a buyer who liked your home enough in its current state to make an offer on it. Making unnecessary major changes could end up being a waste of your time and resources.

Making the effort to complete some strategic projects before your appraisal can help you get the outcome you want!