What Should You Do for a Home Appraisal?

Gathering Information for the Appraiser

Preparing for a home appraisal involves collecting specific documents and data points that help the appraiser accurately assess your property’s value. Having these materials readily available ensures the appraiser has a comprehensive understanding of your home’s characteristics and any significant changes. This organized approach can streamline the appraisal process and contribute to a more precise valuation.

Your property deed or a recent survey provides legal descriptions of property boundaries and confirms ownership. Additionally, recent property tax statements offer insight into the current assessed value and tax history of the home, which appraisers consider alongside market data.

A detailed list of major home improvements, upgrades, and renovations is helpful. This should include dates of completion and, if possible, the costs associated with projects like new roofs, updated HVAC systems, kitchen or bathroom remodels, or significant room additions. Energy-efficient upgrades, such as new windows or insulation, should also be noted, as these can positively influence a home’s market appeal and value.

Providing any existing appraisal reports or home inspection reports can give the appraiser historical context and highlight previously identified conditions or improvements. If your property is part of a homeowners association (HOA), having documentation regarding fees, covenants, conditions, and restrictions (CC&Rs) is important.

Information on comparable properties in your neighborhood that have recently sold can also be useful. While appraisers conduct their own market analysis, homeowner-provided comparables can offer additional perspective. Permits for any major work completed on the property demonstrate that renovations were done to code.

Preparing Your Property for the Appraisal

Before an appraiser visits your home, focusing on its physical presentation helps ensure an accurate assessment. The goal is to make the property accessible and showcase its features clearly. A well-prepared home allows the appraiser to efficiently evaluate its condition.

Cleaning and decluttering throughout the house are beneficial. Ensuring all areas are accessible and tidy, such as clearing pathways and organizing rooms, helps the appraiser move freely and take accurate measurements and photographs. This includes tidying closets, basements, and attics, as appraisers inspect these spaces to assess overall condition.

Addressing minor repairs can prevent negative perceptions. Small issues like leaky faucets, non-functioning light fixtures, or peeling paint can subtly suggest deferred maintenance, potentially impacting the appraiser’s condition rating.

Ensuring good lighting throughout the house, by opening blinds or turning on lights, allows the appraiser to see all features clearly. Similarly, the exterior areas of the property, including the yard, landscaping, and walkways, should be tidy and accessible. A well-maintained exterior contributes to the home’s overall curb appeal and perceived value.

Highlighting specific features or improvements that might not be immediately obvious is helpful. This could include custom built-ins, smart home technology installations, or specific high-quality material choices used in renovations. While the appraiser will observe general features, drawing attention to these details ensures they are not overlooked. Confirming that all areas the appraiser needs to inspect, such as the attic, crawl space, or utility areas, are easily accessible saves time during the visit and facilitates a thorough evaluation.

What Happens During the Appraisal Visit

During the appraisal visit, the appraiser conducts a methodical examination of your property to gather objective data for their valuation. This process begins with a walk-through, allowing the appraiser to get a sense of the home’s layout and condition. Their focus is on factual observation.

The appraiser will systematically measure rooms to determine the home’s gross living area. They will also take numerous photographs of both the interior and exterior to document the property’s features, condition, and any improvements.

Throughout the visit, the appraiser will note property features such as the number of bedrooms and bathrooms, the type of flooring, and the quality of finishes. They also inspect components like the kitchen and bathrooms, assessing the condition of appliances, cabinetry, and fixtures. Basements, attics, and mechanical systems (HVAC, water heater) are also examined for functionality and condition.

Allow the appraiser to work undisturbed during their inspection. While you may be present, minimizing distractions enables them to focus on their task efficiently. If the appraiser has questions, they will ask them directly, and you can provide concise and accurate answers.

The appraiser’s objective is to gather sufficient data to make an informed valuation based on market conditions and property characteristics. Their assessment relies on verifiable information and direct observations, ensuring that the final appraisal report is a data-driven estimation of value.

Understanding the Appraisal Report

After the on-site visit, the appraiser compiles their findings into a comprehensive report, delivered to the lender and then to the homeowner. This report provides a detailed analysis and the appraiser’s estimated value of the property. Understanding its components is important for interpreting the valuation.

A standard appraisal report, such as the Uniform Residential Appraisal Report (URAR), includes several sections. It begins with a detailed property description, outlining its physical characteristics, condition, and any specific improvements. This is followed by a neighborhood analysis, which assesses the local market conditions, property values, and trends that may influence the subject property’s value.

The report’s comparable sales (comps) section is central. Appraisers select several recently sold properties that are similar to yours in terms of size, age, condition, and location. They then make adjustments for differences between your property and these comparables, such as variations in lot size, number of bathrooms, or specific upgrades. For instance, if a comparable property has an extra bathroom that yours lacks, a downward adjustment will be made to its sale price to reflect that difference.

The report concludes with a reconciliation of value, where the appraiser weighs the various approaches to value and arrives at a final estimated value. This final figure is the appraiser’s professional opinion of the property’s market value on the effective date of the appraisal.

If you have questions or perceive discrepancies in the report, your first step is to communicate with your lender, as they are the appraiser’s client. The lender can then relay your concerns to the appraiser. In cases of significant discrepancies, you may request a reconsideration of value, providing additional information or pointing out factual errors for the appraiser to review.