What to Know about House AppraisalsThe most important thing to know about a home appraisal is that this report can easily kill the deal. If the home comes in under the agreed selling price, it creates a bad scenario. After all, the lender will see the property just isn’t worth the agreed selling price. Which means the buyer will have to come up with the difference or get the seller to lower the price to equal the appraised value.
Don’t let a bad appraisal mess up your deal. This might happen if the prospective buyer of your home is seeking a conforming loan backed by Fannie Mae or Freddie Mac. Some appraisers used for these loans have been hired on the cheap and may lack the education, experience and time to do a good job — basically, to verify that your home’s sale price is supported by its market value. A poorly done appraisal that says your home is worth less than it really is can stop a loan from being approved. —Kiplinger.comHowever, if the appraiser determines the home is worth more than the agreed selling price, the seller will certainly look for a way out. With these two possibilities in-mind, it’s easy to understand just how important the appraised value is to the viability of the transaction.
Home Appraisal Prep in TampaSince the appraisal plays such a huge role in the deal, you as the seller need to make the best impression possible on the appraiser. Here are some helpful suggestions for how to do home appraisal prep to boost the value:
- Beef-up the curb appeal. Mow the yard, trim hedges, shrubs, and trees, and be sure to cleanup all the yard waste. Then, spread some mulch around trees, around the mailbox, and in the planter. Add a few colorful flowering plants and this will spruce up the curb appeal to make a great first impression.
- Repair anything that’s broken. Whatever might need repair needs attention. Fix everything that needs it because this will count toward the value of the property. And, you don’t want to give the buyer any objections.
- Create a finished home improvement list. You’ll leave this out for the appraiser. It should include an improvements, along with new appliances, and other makeovers and upgrades.
- Prepare a list of recently sold comparables. The home appraiser should do this and have a solid list of recently sold comparables. Unfortunately, this isn’t always the case and it can present a real problem. Prepare a list of recently sold homes that are as similar to yours as possible to give to the appraiser.