Many people wonder what a good appraisal is, and how to make sure that their home is appraised correctly. The first step to ensuring a good appraisal for your home is to understand the appraisal process, and the differences between a home appraisal and a home inspection. A good appraisal will consider many different factors and components before deciding on the fair market value of your home. There are some steps that an appraiser should follow to ensure the most accurate appraisal possible.
The first thing a professional appraiser will do is research your property, to determine the size, the number of bedrooms and bathrooms included, how old your home is, how large your lot is, and how many square feet your home and your yard include. Next the appraiser will look at recent home sales within a one mile radius of your home. At least three other homes should be included in the appraisal, and these homes must be comparable to yours concerning the size, number of rooms, and property dimensions. These homes must also have been sold within the last six months. These properties are called comparable properties, and they make up a big basis for your actual market value.
After doing the required research on both your home and comparable properties sold within the last six months, the appraiser is ready to do a field inspection of all four properties. The three comparable properties are only inspected on the outside, but your home will be inspected both inside and out. The appraisal normally starts with your home, and the appraiser will usually take photos for comparisons with other properties. During the inspection of your home the appraiser will note the condition of the inside, and will write down any conditions which may increase or decrease your home’s market value. A floor plan is also drawn by the appraiser at this time. Once the field inspection is complete at your home, the appraiser will go to the comparable properties, and take pictures and inspect the exterior of these homes for any factors that are different than your home. The interior of the comparable properties is rated using several different sources, including Multiple Listing Services, public records from the county, and other appraisal files.
A good appraisal will consider all of the facts and circumstances of your home value. Preparing for an appraisal is important, because a bad appraisal may affect selling your home and the price you will receive for it. If the appraisal is too low, lenders will not approve a loan for the purchase of the home, and this can result in you lowering the sale price. Make sure your home is ready when the appraiser arrives. Clean up your back yard, and do any routine maintenance and repairs to your home. Wipe down walls, and make sure that the interior of your home is clean and in great shape. Fix or replace things like trim, door knobs, and other cosmetic items that detract from the appeal of your home. Make a list of all improvements and renovations done, because these usually increase the value of your home. Make sure your entire property is clean and clutter free.
The appraiser will take pictures of both the front and back of your home, as well as comparable homes in your area. The photos of the front will show not only the curb appeal of your home, but also other homes in your neighborhood and the neighborhood type. This is important because one home that is run down and in poor repair can bring down the home values of the entire neighborhood. The photo of the back of your home will let the lenders see the condition of the entire yard. Many people neglect the back of their home because they assume no one will ever see it. Then when the appraiser comes, these people are surprised by the bad appraisal their home receives because of clutter and needed repairs to the rear of their home and property.
A good appraisal can be had if you make sure that your home is well maintained, clean, and clutter free. Be prepared in advance, before the appraiser comes to your home. Do some research and find out what comparable properties are selling for in your area. Being armed with this information can help you ensure that the appraisal is accurate, and reflects the true market value of your home and property.
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