When you list your home for sale, one vital aspect is the appraisal. This is an area that can be significantly influenced by what you do or don’t do.
Knowing which areas to pay particular attention to can help you increase your home’s value. Here are several focal points to ensure a positive appraisal.
Unkept exterior/interior – Having a messy home from the outside in, not only can cause potential buyers to turn away, but it can also cause an appraiser to shave a little off your homes value.
Curb appeal does not just entice buyers to come in and see more of your home, it can actually increase your appraisal value. Also, if neighboring homes are meticulously kept up and yours is not, this could cause your appraisal to be even more severely down- graded. A carefully maintained yard is a sign that the home is also likely kept up.
Trendy remodels – Remodeling can certainly add value to your home, especially if you are adding storage, room additions, and other important improvements that are popular among buyers. However, if you do a costly and trendy remodel and think that the true cost will equal the value, you could likely be disappointed.
Unfinished remodeling projects – Do not have an appraiser inspect when your remodels are incomplete. If you must get the home appraised and work is nearly complete at the time of the appraisal, be sure to give the appraiser a full description of the job and what is being done to quickly and professionally complete it.
Forgetting to list improvements – Do not expect all improvements to help your appraisal. For instance, a new roof will not count. Buyers and appraisers expect a roof to be in good condition. However, some other improvements could add value to the appraisal. Rather than trying to determine which improvement will increase your value, compile a detailed list and give it to the ap- praiser. Have copies of any documentation, such as city permits that were necessary, available for the appraiser to review.
Not doing your homework – It is important to understand your marketplace and what homes similar to yours have recently sold for. For instance, it is especially vital to know the reason a home that is similar to yours sold for less or more. That way you can explain to the appraiser the difference between yours and the one that sold for a lower/higher price. Be sure to use an experienced local real estate professional to provide you with market information before you have your home appraised.
Taking the time to understand the areas that can positively influence your appraisal can help ward off the chances that your home will be appraised at a lower value than the asking price.