Home sellers and homeowners who refinance their mortgages often have to endure a unique test: the home appraisal. If you’re selling, you want the highest appraised value possible to make sure the sale goes through. If you’re refinancing, you’re probably withdrawing equity. Either way, every dollar of appraised value is potentially a dollar in your pocket.
It’s never a good idea to try to fool the appraiser, most of them have seen all the tricks in the book, but there are simple things you can do to get additional value or equity out of your home.
1. Make the place presentable.
You don’t have to be able to eat off the floor; the house doesn’t even have to be as spotless as it would be for an open house. But impressions matter. Thrown clothes, dirty dishes, full bins can all contribute to giving the wrong impression.
2. Repair or replace broken windows, railings, steps, and other hazards.
Your chances of being able to avoid this, even if the buyer doesn’t care, are slim to none now that the mortgage lender wants an appraisal. (And zero if your buyer is going through the FHA). So take care of it in advance. And any appliances that stay with the house, if you are selling it? Those have to work too.
3. Have your real estate agent present during the inspection.
You generally can’t fool an appraiser, and neither can your agent. But your agent is better able to think on your feet at times like these, and more likely to address the appraiser’s lingering concerns than you are. Sellers, your agent works for you, put him to work during the appraisal.
4. Do you love what you’ve done with the place?
Hardwood floors four years ago? Bathroom remodeled two and a half years ago? Was the lawn reseeded last summer? Bring them to the attention of the appraiser. Don’t expect his appraised value to increase by the amount you invested, but don’t be shy about pointing out what you’ve done.
5. Control your pets and children.
The less stressful the appraiser’s inspection, the better it is for both of you. An appraiser worried about being attacked or constantly distracted is not as likely to get the highest value.
6. Control the urge to do the appraiser’s job for him.
You will often hear that you should suggest recently sold homes in the area that the appraiser can compare yours to. In truth, the appraiser sees it as his job, and is more likely to resent it than appreciate it. And he may have a point. You and your agent are interested in getting the highest possible value. The appraiser knows this and, in fact, he can discount a comparable sale you can think of.
That said, the information and suggestions offered will often be kindly received. Just don’t overdo it. Understand where the appraiser is coming from: he understands where you are coming from.
7. Cooperate.
A lot of people don’t like a stranger wandering around their house evaluating them. But it’s for your own good. And a friendly and cooperative owner makes a much more favorable impression than a controversial one.
When it comes time to ask for your appraisal, it’s normal to feel a little worried or intimidated. However, if you’ve done your homework on the value of your home, you should rest easy. Follow these simple suggestions, and when the evaluation is ready, you will surely be happy!