What To Expect During a Home Appraisal
Having your house appraised might seem daunting, even scary, especially if you have never gone through an appraisal before. Knowing what the house appraiser will look for when he or she arrives can both ease your concern and help you prepare your home properly. Last week, we explained the purpose behind appraisals and their role in the closing process; this week, we’re going to explore exactly what an appraiser looks for on a property. If you’re selling, a minimal amount of effort on your part can have an enormous impact on your home’s appraised value, which can either increase your equity in the home or boost the return on your investment if you plan to sell.
Structure
Before the appraiser even enters the home, he or she will investigate the structure and overall condition of the exterior. Looking at the foundation, siding and roofing, the appraiser will determine the material, quality and condition of each. The appraiser also will look for cracks, leaks, damage or defects around the exterior of your home. Prefabricated homes will lose value here, as they tend to be built with lower-quality materials that. Custom-built homes, on the other hand, will often gain value in this regard because they’re usually made with higher-quality materials and are often one-of-a-kind, which adds even more to the home’s overall value.
Interior
Once they examine the exterior, the appraiser will step inside your home to look for the essentials that make up a house, such as the material and quality of the walls and inside roof, the type of flooring and its condition, and the number, type and quality of windows and doors. They will also look for permanent fixtures installed in the home, including appliances, plumbing and lighting fixtures, and they’ll be sure to note any defects or damage. To understand what the appraiser will look for inside your home, imagine what you would leave behind if you moved out; that’s basically what the appraiser will be looking at. They will inspect these things and consider the overall value of your home. So focus your time, attention and money on checking, repairing and/or upgrading, if necessary, what the appraiser will inspect. You can ignore anything that you would take with you, because the appraiser will ignore those things too.
Amenities
The amenities installed in your home have a significant impact on the home’s value. The appraiser will note what features your house does – and doesn’t – have. These include modern conveniences, such as central air conditioning, baseboard heating, smoke detectors (smoke detectors are extremely important, by the way!) and a detached garage. If your home lacks these features, the appraiser will likely place your home’s value much lower. They will look for additional features as well, such as a fireplace, a security and/or intercom system and solar panels. Any outdoor amenities, such as an in-ground pool or a gazebo, will also be taken into consideration so you’ll want to make sure anything of that nature is properly maintained and in good condition.
Upgrades
One often-overlooked aspect of an appraisal is the work you’ve done on your home since you took ownership. Any remodeling completed can influence the appraised value of your home (usually in a positive way). The appraiser will examine any upgrades to the kitchen such as the stove, oven, sink and faucet, countertops and other built-in appliances. Bathrooms are next on the appraiser’s checklist. Bathtubs and showers, toilets, sinks, faucets and lighting fixtures are all noteworthy if you’ve upgraded any of them. If you did remodeling work on your home or hired a contractor to complete it for you, list the upgrades and the old appliances and fixtures they replaced. If you have work orders, receipts, or invoices, even better. Give the appraiser the list and point these things out as you go through each room. Again, don’t include appliances or accessories that are not permanently installed, including your refrigerator, microwave and décor; the appraiser will ignore these items, and they do not contribute to the overall value of your home.
Front and Back Yards
Your front and back yards are almost as important to the overall value of your home as the house itself. The foremost aspect the house appraiser will consider is the size – the larger your plot, the higher your appraisal will be. The appraiser will look for and consider landscaping, and permanent fixtures like an in-ground sprinkler system. Although the actual appearance has little to do with your home’s overall value as far as the appraiser is concerned (they’re literally the one exception in this regard), remember your front yard in the first thing the appraiser will see. An unkempt, overgrown yard could influence their appraisal.
If you know what to expect, an appraisal becomes a much less intimidating process. It’s a part of every sale, so every homeowner, potential buyer, and real estate professional needs to be familiar with the process. As a homeowner, taking care of the areas of your home we described here can go a long way to a good appraisal and your home being valued fairly. For more information, advice, and market trends, sign up for our Priority Access List to receive newsletters and advanced listings, and don’t forget to follow us on Facebook and Twitter!
– Get It Right Solutions