How to Get a Good Home Appraisal for Your Property

A home appraisal is an unbiased, professional assessment that estimates a property’s market value. This valuation provides a clear picture of a home’s worth, ensuring the agreed-upon price is fair and reflective of its true market value. Lenders rely on appraisals when securing a mortgage, ensuring they do not lend more than the property is worth. For homeowners looking to refinance, an appraisal determines if the home has maintained or increased its value, potentially leading to more favorable loan terms.

Understanding the Appraisal Process

The appraisal process begins when a lender orders the appraisal. A state-licensed appraiser is selected and contacts the homeowner to schedule an on-site visit. During this inspection, the appraiser examines the home’s interior and exterior, taking notes, measurements, and photos. They assess the home’s overall condition, structural integrity, room layout, and quality of finishes.

Following the physical inspection, the appraiser conducts a market analysis. This involves reviewing public records and recent sales data for comparable properties (“comps”) in the immediate area. The appraiser analyzes these comps to determine how similar properties have sold and how those sales relate to the subject home’s value. This data analysis, combined with on-site observations, forms the basis for their valuation. The appraiser then compiles a detailed report, often using a standardized form, which includes photos, property descriptions, market analysis findings, and the final valuation. This report is delivered to the lender, and borrowers are entitled to a copy before the loan closes.

Factors Influencing Appraisal Value

Several factors significantly influence a home’s appraisal value. Location is often considered the most impactful factor, with properties in desirable neighborhoods, good school districts, and close proximity to amenities like transportation and parks often commanding higher values. The home’s physical attributes are also thoroughly evaluated, including its overall size, measured in square footage, and the number of bedrooms and bathrooms, as these directly impact livable space and functionality. While a larger home generally appraises higher, the appraiser also considers if the house is appropriately sized for its lot.

The property’s condition and age play a substantial role, as newer homes or those with recent updates tend to appraise higher. Appraisers look for the quality of construction, visible defects, and the general upkeep of the property. Permanent features or upgrades, such as a fireplace, deck, or swimming pool, can also add to the appraised value. Beyond the property itself, the most significant input for appraisers is comparable sales, also known as “comps.” These are properties with similar characteristics that have recently sold in the same market area. Appraisers typically select at least three recently closed sales, ideally within a one-mile radius and sold within the last six months to a year, to use as benchmarks. Adjustments are then made to these comparable sales to account for differences in features, size, condition, and location, allowing the appraiser to derive an estimated value for the subject property based on actual market transactions.

Preparing Your Home for Appraisal

Preparing your home for an appraiser’s visit can enhance its perceived value. Ensuring the home is clean and clutter-free creates a positive impression and allows the appraiser to easily access and assess all areas. While appraisers are not home inspectors looking for every minor flaw, addressing small repairs like fixing leaky faucets or touching up chipped paint signals that the home has been well-maintained.

Improving curb appeal is another impactful step, as the exterior is the first impression an appraiser receives. Simple actions like mowing the lawn, trimming overgrown shrubs, removing dead plants, and cleaning the exterior (including windows and siding) boost attractiveness. A fresh coat of paint on the front door or updated house numbers can also make a noticeable difference. Inside, ensuring all areas of the home are accessible, including attics and crawl spaces, allows the appraiser to conduct a thorough inspection. Showcasing the home’s best features, such as natural light or unique architectural elements, can also be beneficial.

Providing Key Information to the Appraiser

Providing specific documentation and information for the appraiser can provide valuable context. Compile a detailed list of significant home improvements, renovations, or major repairs, including completion dates and, if possible, costs. Examples include a new roof, an upgraded HVAC system, a kitchen or bathroom remodel, or the finishing of a basement or attic space.

Provide documentation of any permits obtained for major work. Information on energy-efficient upgrades, such as new windows, insulation, or solar panels, can positively influence the appraisal. Include details on neighborhood amenities or unique local features that add value, such as proximity to highly-rated schools, public transportation, or recreational facilities. A copy of the property’s survey or plot plan can also be helpful.