A home appraisal can make or break a real estate transaction. Whether you are trying to sell your home, refinance an existing mortgage or obtain a home equity line of credit, the financial aspect of the transaction will be determined by the valuation method ordered by the bank.
Given the importance of the appraisal, you don't want it to end up being a stumbling block in the process of closing a real estate or mortgage transaction. In general, you want to avoid low appraisals since they can effectively derail the transaction. Here are four things you can do to improve your chances of a good property valuation.
1. Keep Records of Home Improvement
Appraisers tend to be very interested in learning about the structural history of a property. If you are fixing your home before an appraisal is ordered by the bank, be sure to properly document repairs and improvements in a way that tells a before-and-after story; this may include photos and invoices.
2. Learn About Your Housing Market
While it is often a good idea to engage the appraiser in meaningful conversation about the local housing market, you should be prepared to support your talking points. A good conversation starter in this regard can be about comparable properties in the neighborhood. Thanks to the wealth of real estate information that can be found online these days, finding comparable listings is easier than ever: the key is to get information from a reputable, local website. If you live in the Brainerd Metropolitan Area of Minnesota, for example, you should start your search at a local real estate website like EXIT Lakes Realty Premier that features a solid MLS search engine.
3. Tidy Up Your Home
When the appraiser arrives at your house for the valuation study, he or she will get into a residential state of mind to get the job done; this means that the appraiser will be attuned to the various factors that make up the household, including cleanliness and organization. You should really try your best to make your home look tidy and inviting so that the appraiser can get into a positive mood during the evaluation.
4. Learn About Appraisals
Although appraisals are business functions, they are considered to fall somewhere in between science and art. If you would like to gain a better understanding of the process, visit the website of a professional website such as the Appraisal Institute.
In the end, taking time to prepare for an appraisal could actually put some cash in your pocket at closing.
About the author: Anica is a professional content and copywriter who graduated from the University of San Francisco. She loves dogs, the ocean, and anything outdoor-related. She was raised in a big family, so she's used to putting things to a vote. Also, cartwheels are her specialty. Anica writes on behalf of EXIT Lakes Realty Premier, which provides an MLS search engine for home appraisal.