How to Get a High Appraisal for Your Home

A home appraisal provides an objective, professional assessment of a property’s market value. This valuation is a significant component in various real estate transactions, including buying, selling, and refinancing. Securing a high appraisal value is often a goal for homeowners, as it directly impacts financial outcomes, such as the loan amount a lender is willing to provide or the equity recognized in a property.

Understanding the Appraisal Process

A licensed appraiser conducts a home appraisal to determine a property’s unbiased market value. Appraisers operate independently, adhering to strict professional standards to ensure their valuation is impartial.

The appraisal process typically begins when a lender orders the appraisal after a purchase offer is accepted or a refinance application is initiated. The appraiser then schedules a visit to the home to conduct an inspection of its characteristics and condition, examining both the interior and exterior. Following the on-site visit, the appraiser performs extensive research, analyzing recent comparable sales in the area and public records to generate a detailed report. This report, often the Uniform Residential Appraisal Report, is then delivered to the lender, with the borrower entitled to a copy before closing. The average cost of a home appraisal in the U.S. typically ranges from $300 to $500, though this can vary based on property type and location.

Factors Appraisers Evaluate

Appraisers consider a variety of elements when determining a home’s value, with comparable sales being a primary focus. Recent sales of similar properties in the immediate area, known as “comps,” are crucial for establishing market value. Appraisers select these comparables based on proximity, size, age, condition, features, and sale date, typically looking for sales within the last six months and within a reasonable distance, often one mile. Adjustments are made to the comparable properties’ prices to account for differences from the subject property, ensuring a fair comparison.

Property condition significantly influences value, as appraisers assess the overall wear and tear, maintenance, and recent repairs. Homes that are well-maintained and free from visible defects tend to appraise higher. Property features and amenities are also evaluated, including square footage, number of bedrooms and bathrooms, lot size, and significant upgrades like kitchen remodels or new roofing. Location plays a substantial role, with factors like neighborhood quality, school districts, and proximity to amenities impacting desirability and value.

Market conditions, such as supply and demand, interest rates, and economic trends, further influence the appraised value. In a market with high demand and low inventory, property values tend to be higher, while declining markets can lead to lower appraisals.

Enhancing Your Home’s Appeal Before the Appraisal

Addressing minor repairs and maintenance before an appraisal can significantly impact the perceived value of your home. Fixing visible issues such as leaky faucets, cracked windows, or peeling paint demonstrates proper upkeep and can prevent the appraiser from noting deferred maintenance, which might negatively affect the valuation.

Decluttering and thoroughly cleaning your home are also important preparatory steps. An organized and clean environment allows the appraiser to clearly see and assess the home’s features and overall condition without distractions.

Improving curb appeal can create a positive first impression for the appraiser. Simple exterior enhancements, such as tidying the landscaping, cleaning the home’s exterior, and ensuring the entryway is welcoming, can suggest a well-maintained property.

Gathering comprehensive documentation is a crucial part of preparation. Compile a detailed list of all significant upgrades and renovations, including dates of completion and costs if available. Include permits for major work, information on energy-efficient improvements, and any relevant HOA documents or property surveys.

Presenting Information During the Appraisal Visit

During the appraiser’s visit, it is beneficial for the homeowner or a knowledgeable representative to be present to answer any questions. While the appraiser conducts their independent assessment, being available can facilitate the process and provide clarity on specific property details.

Providing compiled documentation to the appraiser in an organized manner is a key step. This can include the detailed list of upgrades, renovation permits, and other relevant records gathered during preparation. Presenting this information concisely, perhaps in a well-organized folder or “brag sheet,” ensures the appraiser has access to important details that might otherwise be overlooked.

Highlighting less obvious but valuable features or recent improvements is also advisable. This might involve drawing attention to upgraded insulation, smart home technology, or specific appliance models that could add value but might not be immediately apparent during a visual inspection. Maintaining a professional and cooperative demeanor throughout the visit is important, avoiding any attempts to overtly influence the appraiser’s objective opinion.

What to Do After the Appraisal

Upon receiving the appraisal report, homeowners should review it carefully for accuracy. Check for any factual errors, such as incorrect square footage, a miscount of rooms, or missing features that could impact the valuation.

If significant errors or overlooked comparable sales are identified, a “reconsideration of value” (ROV) can be requested. This formal process involves submitting additional evidence, such as more suitable comparable sales or documentation of factual inaccuracies, to the lender. The goal of an ROV is to prompt the appraiser to reassess their conclusion based on the new information, but it is not intended to change the value simply due to dissatisfaction.

Should the appraisal value remain too low for the transaction, several options may be considered. These include renegotiating the sales price with the other party, or if buying, bringing more cash to closing to cover the difference between the loan amount and the sale price. In some cases, a second appraisal might be permissible, though there is no guarantee it will result in a higher valuation.