How to Prepare for Your Home Appraisal

Preparing for a home appraisal is a crucial step in real estate transactions, whether buying, selling, or refinancing. An appraisal provides an objective assessment of a property’s market value, important for lenders to determine loan collateral value. This valuation ensures the mortgage lender does not extend more credit than the home is worth, safeguarding both lender and homeowner. Understanding the process and taking proactive steps can facilitate a smoother transaction and impact the final valuation.

Factors Appraisers Consider

Appraisers evaluate criteria to determine market value. A primary method involves analyzing comparable sales, or “comps,” which are recently sold properties similar to yours in the immediate vicinity. Appraisers typically seek comps sold within the last six months and within a close radius, adjusting for differences between these properties and your home. These adjustments account for variations in features, condition, and market trends, providing a baseline for your home’s valuation.

Beyond comparable sales, appraisers inspect your property’s physical characteristics. They assess the home’s condition, age, size, and layout, including bedrooms and bathrooms. The quality of structural materials, roofing, foundation, and major systems like HVAC and plumbing are evaluated. Appraisers note signs of deferred maintenance or significant issues affecting value.

The home’s location plays a significant role in its appraised value. Appraisers consider neighborhood desirability, proximity to amenities, schools, and transportation, and general market conditions. Lot size, exterior features like landscaping and a garage, and unique attributes are also taken into account.

Gathering Property Documentation

Compiling property documents assists the appraiser in understanding your home’s value. Prepare a detailed list of major home improvements and upgrades, including completion dates, costs, and relevant permits. Examples include room additions, new bathrooms, kitchen remodels, roof replacements, or significant landscaping projects that add value.

It is beneficial to have a copy of your property’s plot plan or survey, if readily available, to provide accurate dimensions and boundaries. Information on the property’s purchase within the last three years, along with written property agreements like maintenance agreements for shared driveways, offers valuable context. Gather recent property tax bills or legal descriptions, which provide essential details about the property’s assessed value and characteristics.

Include past home inspection reports, especially those related to specific systems like septic systems, wells, or pest control, as these provide historical data on home condition. If your property is part of a homeowner’s association (HOA), compile relevant HOA documents, including fees and covenants. Prepare information on recent comparable sales in your neighborhood not publicly listed, or proposed improvements, to share with the appraiser.

Preparing Your Property’s Appearance

Enhancing your property’s visual appeal creates a positive impression during the appraisal. A clean, organized home suggests proper maintenance. Clean and declutter all interior spaces, focusing on high-traffic areas like kitchens, bathrooms, and living rooms. Remove excess items from countertops, organize shelves, and tidy storage spaces, as appraisers may inspect these areas to assess organization.

Address minor, noticeable repairs, such as leaky faucets, loose cabinet handles, chipped paint, or broken light fixtures. While appraisers are not home inspectors, obvious signs of neglect can subtly influence their perception of condition. Ensure all systems, including heating, cooling, and plumbing, are in working order for a positive evaluation.

Improving your home’s curb appeal is important, as the exterior provides the appraiser’s first impression. Mow the lawn, trim overgrown bushes, and clear debris from the yard. Consider a fresh coat of paint on the front door, cleaning the driveway, or power washing the siding for an instant refresh. A well-maintained exterior suggests the property is well-kept inside.

During the Appraiser’s Visit

When the appraiser visits, facilitate their inspection and provide pre-gathered information. Ensure all areas of your home, including the attic, basement, and any outbuildings like garages or sheds, are easily accessible. Unlock any locked doors or gates impeding access.

Be available to answer questions about your property or the neighborhood. Have your compiled documentation readily accessible, such as the list of home improvements with dates and costs, permits, and any comparable sales data you’ve researched. This demonstrates preparedness and ensures the appraiser has relevant information.

While it is helpful to be present, avoid hovering over the appraiser or attempting to influence their valuation. Allow them space and time to conduct their inspection, take measurements, and capture photographs. You can politely point out unique features or recent improvements not immediately obvious, ensuring value-adding elements are noted.