How to Prepare For a Home Appraisal

Thinking of selling your home but feeling overwhelmed? You’re not alone. Many homeowners are searching for the best way to sell their home especially when faced with tough situations. Whether you’re going traditional or exploring alternatives, understanding the home appraisal process is key. This will walk you through everything you need about home appraisals and how to prepare for one.

Home Appraisal

A home appraisal is a big part of the home-selling process. It’s an independent professional opinion of your property’s value, usually required by lenders before they give you a loan. Even if you’re exploring alternatives, knowing your home’s appraised value will give you bargaining power.

The appraisal takes a few hours and involves a thorough walk-through of your property. When the appraiser arrives they’ll go through your home, inside and out, noting its condition, size, and any special features that impact its value.

An appraiser’s job is to give an independent opinion of your home’s value. They use a combination of their professional expertise, knowledge of the local real estate market, and a system to determine your property’s value. This value is important for buyers and lenders but also impacts property taxes and insurance.

What Home Appraisers Look For

Home appraisers focus on several key areas during their visit:

1. Home’s Exterior: They’ll assess your home’s curb appeal, and the condition of the roof, siding, and foundation. The exterior appearance can impact the overall value. Appraisers will look for signs of wear and tear such as peeling paint or damaged siding which can negatively impact your home’s value.
2. Home’s Interior: The appraiser will examine the condition of walls, floors, and ceilings. They’ll also check if all systems are functioning properly, including plumbing, electrical, and HVAC systems. The overall cleanliness and maintenance of your home’s interior can impact the appraiser’s perception of your property.
3. Square Footage: Accurate measurements of your home’s living space are crucial in determining its value. The appraiser will measure each room and calculate the total square footage of your home. That’s why it’s important to make sure all areas of your home are accessible during the appraisal.
4. Home Improvements: Recent improvements or renovations can add extra value to your property. The appraiser will note any upgrades you’ve done, such as a new kitchen, bathroom remodel, or finished basement. It’s helpful to provide documentation of these improvements including costs and dates of completion.
5. Comparable Sales: The appraiser will consider recently sold properties in your area similar to yours. These “comps” help the appraiser determine a fair market value for your home based on current market conditions. The number of bedrooms and bathrooms, overall square footage, and location are key factors in selecting comparable properties.
6. Surrounding Area: The neighborhood, nearby amenities, and overall location impact your home’s value. Factors like proximity to schools, shopping centers, and public transportation can all impact your home’s appraised value. The general upkeep of neighboring properties can also impact your home’s value.

How to Prepare for a Home Appraisal

Now that you know what to expect, let’s get into how you can prepare for a home appraisal to get the best results.

Boost Your Home’s Curb Appeal

First impressions matter and your home’s curb appeal can impact its value. Here are some tips:

1. Mow the lawn and trim hedges: A well-manicured lawn suggests the whole property has been well-maintained.
2. Plant fresh flowers for a pop of color: This simple addition can make your home look more welcoming and cared for.
3. Clean gutters and downspouts: This shows you’ve kept up with home maintenance and can prevent water damage.
4. Pressure wash the exterior and driveway: A clean exterior can make your home look newer and well-maintained.
5. Make sure exterior lights are working: Functional lighting enhances safety and appearance.
6. Touch-up exterior paint: If your home’s paint is looking faded, consider a fresh coat or at least touch up any peeling or chipped areas.
7. Clean up outdoor living spaces: If you have a patio or deck, make sure it’s clean and in good repair.

If you want to sell your house fast in West Allis, improving your curb appeal can make a big difference in attracting buyers and the appraiser.

Make Repairs

Address both small and big repairs to positively impact your appraisal:

1. Fix leaky faucets and running toilets: These small issues can suggest bigger plumbing problems if left unaddressed.
2. Repair damaged flooring: Cracked tiles, torn carpet, or damaged hardwood can take away from your home’s value.
3. Patch holes or cracks in walls: Even small imperfections can make a room look unmaintained.
4. Make sure all doors and windows open and close properly: Sticky windows or doors can indicate structural issues.
5. Address any issues with your HVAC system: A functioning heating and cooling system is key to your home’s value.
6. Check for electrical issues: Make sure all outlets and switches are working.
7. Look for water damage or mold: These are major red flags for appraisers and buyers.

Remember, you want to show your home has been well maintained over time. Addressing these issues before the appraisal can prevent them from hurting your home’s value.

Clean and Declutter

A clean and organized home looks well maintained:

1. Deep clean all rooms: This means dusting, vacuuming, and mopping all surfaces.
2. Remove any stray toys or personal items: Clutter can make rooms look smaller and less appealing.
3. Organize closets and storage areas: Appraisers won’t judge your organizational skills but tidy storage spaces can make your home feel bigger.
4. Clean windows and mirrors: Sparkling glass can make your home look brighter and more welcoming.
5. Make sure kitchen appliances are clean and in good condition: The kitchen is often the heart of the home and can impact its value.
6. Don’t forget about often overlooked areas like baseboards, ceiling fans, and light fixtures.
7. Consider hiring a professional cleaning service for the best results.

A clean home looks better and implies to the appraiser that the property has been well-maintained.

Document Home Improvements

If you’ve made any recent improvements or renovations sure to document them:

1. Make a list of all upgrades with dates and costs: This will help the appraiser understand the investments you’ve made in your home.
2. Gather receipts for materials and labor: These are concrete evidence of the money you’ve put into your home.
3. Before and after photos can be helpful: Visual evidence makes a big impact on the appraiser.
4. Include information about any new features added to the home: Things like smart home technology or energy-efficient upgrades add value.
5. If you’ve made any structural changes, have copies of permits and approvals on hand.
6. Note any improvements that aren’t visible, like insulation upgrades or new plumbing.

Documenting your home improvements can help justify a higher appraisal value and show you’ve been maintaining and upgrading your property.

Prepare Important Documents

Having these documents ready will help the appraisal process go smoother:

1. Property survey: This shows the exact dimensions and location of your property.
2. Home inspection reports: Recent inspections can provide valuable information about your home.
3. List of major home improvements and costs: This reinforces the investments you’ve made in your home.
4. Receipts for new appliances or systems: These show the value of recent upgrades.
5. Age of major systems (roof, HVAC, etc.): Newer systems can positively impact your home’s value.
6. Property tax bills: These can show how your home is valued by the local government.
7. Homeowners association documents (if applicable): These outline any shared amenities that add value to your property.

Having these documents ready will give the appraiser a full picture of your property and its history.

Home Appraisal Tips for Success

Here are some additional tips to help you get the best possible result from your home appraisal:

1. Be Available: While you shouldn’t follow the appraiser around, being available to answer questions can be helpful. Your knowledge of the home’s history and features can provide context.
2. Point Out Special Features: If your home has unique or valuable features make sure to mention them. This could be custom built-ins, high-end finishes, or energy-efficient upgrades.
3. Create a Comfortable Environment: Make sure your home is at a comfortable temperature during the appraiser’s visit. Extreme temperatures might make the appraiser rush through the process.
4. Secure Pets: Keep pets secured so they don’t distract the appraiser. A barking dog or roaming cat can disrupt the appraiser’s focus.
5. Provide Comparable Sales: If you know of recent sales of similar homes in your area share this information with the appraiser. While they’ll do their research your local knowledge can be valuable.
6. Be Honest: Don’t try to hide problems or exaggerate your home’s features. Appraisers are professionals who will likely spot any attempts at deception.
7. Highlight Recent Updates: If you’ve recently updated any major systems (roof, HVAC, etc.) make sure to point these out. These updates can impact your home’s value big time.

If you’re trying to avoid foreclosure a positive home appraisal can give you more options and potentially help you negotiate with your lender. It may open up refinancing or selling your home for more than your mortgage.

Common Mistakes to Avoid

While preparing for a home appraisal be sure to avoid these common pitfalls:

1. Overpricing: Don’t expect the appraised value to match an unrealistic asking price. Overpricing can lead to disappointment and delays in the selling process.
2. Neglecting Repairs: Deferred maintenance can hurt a home appraisal. Even small issues can suggest bigger problems to an appraiser.
3. Over-improving: Improving things that are out of character for your neighborhood can lower the value. Keep your home in line with others in the area.
4. Being Unprepared: Not having the necessary documents or information ready can slow down the process and impact the appraiser’s perception of your home.
5. Neglecting Safety Equipment: Make sure smoke alarms and carbon monoxide alarms are installed and working. These are not just for safety but are often required by law.
6. Ignoring the Exterior: While interior upgrades are important don’t neglect your home’s curb appeal. First impressions matter even to appraisers.
7. Hovering: While it’s good to be available for questions, following the appraiser around can be distracting and annoying. Give them space to do their job.

Appraisal Outcomes

After the appraisal, you’ll get a report with the appraiser’s findings and the value of your home. Here’s what different outcomes might mean for you:

High Appraisal

If your home appraises for more than expected, good for you! You’re in a good position to sell or refinance. But be aware a high appraisal can raise red flags with lenders. They may require a second opinion to confirm the value.

In a selling situation, a high appraisal gives you confidence in your asking price. But remember the market ultimately determines what a buyer is willing to pay. Use the high appraisal as a negotiating tool but be prepared to be flexible if needed.

Low Appraisal

A low appraisal is disappointing but not the end of the road. You have options:

1. Request a second appraisal: If you think the first appraisal was off you can ask for another opinion. Be prepared to pay for this second appraisal.
2. Challenge the appraisal with additional data: If you have information about recent comparable sales or home improvements that weren’t considered you can present this to the appraiser for reconsideration.
3. Negotiate with the buyer (in a sale situation): If you’re selling you may need to lower your price or find a buyer who will make up the difference in cash.
4. Make improvements and request a new appraisal: If time allows you could make some upgrades and then ask for a new appraisal.

Remember a low appraisal doesn’t mean your home isn’t valuable. It might just mean your local real estate market is changing or there are unique factors affecting your home’s value.

Meeting Expectations

If the appraisal comes in at what you expected you’re in good shape to move forward with your plans whether that’s selling, refinancing, or staying put. This means your understanding of your home’s value matches the market which makes the selling or refinancing process easier.

Alternative Options: Cash Home Buyers

If you need to sell quickly or want to avoid the appraisal process altogether working with cash home buyers might be an option. Cash home buyers in Wisconsin have a streamlined process that can make selling easier.

They don’t require a formal appraisal which can save time and stress. Instead, they do their quick walk-through of the property to make an offer. This can be helpful if:

1. You need to sell quickly due to financial hardship or relocation.
2. Your home needs repairs you can’t afford to do.
3. You want to avoid the uncertainty and risk of a traditional appraisal.
4. You’re facing foreclosure and need to sell before the bank takes possession.

Selling directly to a cash home buyer can be a great way to sell your home. They also don’t charge realtor commissions and might even pay toward closing costs. If you’d like to learn more about how it works and who the best cash home buyers are in your area, contact Cream City Home Buyers. They would be happy to make a cash offer for your home in any condition and close on your timeline. 

Home Appraisals and Personal Finance

Understanding home appraisals isn’t just important for selling; it’s a key part of personal finance for homeowners. Here’s why:

1. Refinancing: Lenders use appraisals to determine your loan-to-value ratio which affects your interest rates and loan amount. A higher appraised value could get you better terms.
2. Home Equity Loans: The amount you can borrow is based on your home’s appraised value. A higher appraisal means you may be able to borrow more if needed.
3. Property Taxes: In some areas appraisals can affect your property’s assessed value and therefore your property taxes. While a higher value means higher taxes it also means your investment is appreciating.
4. Insurance: Your home’s appraised value can impact your insurance premiums. Make sure your coverage matches your home’s current value.
5. Overall Net Worth: For many people their home is their largest asset. Knowing its true value gives you a clearer picture of your financial health and can inform other financial decisions.
6. Investment Decisions: Knowing your home’s value can help you decide whether to invest more in your property or diversify your investments elsewhere.
7. Retirement Planning: Your home’s value plays a big role in your retirement plans whether you’re considering downsizing or using home equity as part of your retirement income.

Conclusion

Whether you’re selling, refinancing, or just want to know your home’s value a home appraisal is a key step. By following the tips in this guide you’ll be able to get your home ready to show off its best features and potentially get a higher appraised value.

Remember while the appraisal is important it’s just one piece of the puzzle. If you’re selling factors like market conditions, buyer demand, and your situation all come into play. Whether you list with a real estate agent, work with cash home buyers, or explore other options, being informed about your home’s value will put you in the best position to make decisions that align with your goals.

Cash buyers that advertise “We buy houses in New Berlin” can be an option for a quick and easy sale. But make sure you do your research.