A home appraisal is an estimated value of what a home is worth based on a variety of factors, such as what comparable homes in the area have been sold for as well as the condition of the home. As a mandatory requirement prior to closing on a home, lenders will order an appraisal to certify that the asking price is fair.
While the condition of your home is important, the prices of surrounding homes have a far greater impact on the overall appraisal. To do everything you can to prepare your home, follow these simple steps:
- Check all safety equipment – Test all smoke alarms, carbon monoxide alarms, and home security alarms to confirm that they are properly installed and in good working condition.
- Consider curb appeal – Make sure that your grass has been mowed and your trees and shrubbery have been trimmed. If you have any dead trees in your yard, consider having them removed before the appraisal.
- Make necessary updates – If you have outdated flooring, countertops or other materials in your home, this can affect the appraisal. For the best possible appraised value, update your house as needed.
- Small improvements matter – Painting the walls and replacing faucet handles may not add much to the appraised value individually, but when added together, they can make a significant difference. By making small improvements to your home, you are giving it a more modern appearance, which can have a very positive impact on your appraisal.
- Keep a list of large home improvements – Be sure to inform the appraiser of any large improvements you have made since purchasing the home, such as kitchen or bathroom updates, new roofing, or upgraded HVAC units. READ MORE