How to Prepare for an Appraisal
The real estate appraisal is a key component to any purchase or refinance transaction. Some people fear of the dreaded low appraisal, since it could essentially cause a deal to fall through, however there are a number of ways you can plan and prepare to make your home’s best impression.
Before the appraiser arrives there are several things a homeowner can do to make their home represent the best light possible. Tidying up both inside and out is a good idea. On the interior, displaying a clean home that the appraiser can easily observe the condition and quality is helpful. The appraiser should be able to access all areas of the home from the basement to the attic.
To Do Before the Appraiser Arrives
Tidy up outside – ; mow the lawn, trim the bushes, and clear any debris on the ground. Includes fixing any broken steps, damaged gutters, roofing or siding.
Tidy up inside – Make sure all appliances are in working order, fix leaky faucets, and missing door handles
When the appraiser arrives, feel free to let them know any information about the home that could pertain to value. For example, any reasonably significant improvements that you have made to the home in the last 10 years which could include a kitchen or bathroom renovation, adding a second zone of central air conditioning, or a rear addition. Smaller items like changing out kitchen hardware, adding gutter screens, or getting the air ducts cleaned are nice for the home, but don’t really add value. Also understand that if you provide the appraiser with the cost of the improvements, that does not always translate to dollar for dollar value. Some items may add more value and some items may not provide as much value as you spent. A very high end kitchen in an average neighborhood is one example of most likely not seeing the return on investment.
Feel free to accompany the appraiser during the inspection and point out anything noteworthy. If this is an appraisal for an FHA loan, there are additional items that the appraiser observes. Make sure the heating and air conditioning are working as well as the hot water heater. The appraiser will also check to see if the electric is on, if windows open and close properly, and if there are hand railings by the steps. If the home was built before 1978, they will check for peeling paint. If the paint is peeling, try to remedy this before the appraisal inspection.