If you’re in the market for a new home or are looking to sell your home, you’ve probably heard the term home appraisal. Your real estate agent might have explained it to you, but here’s an explanation of a home appraisal and what it means for you.
What Is a Home Appraisal?
A home appraisal is the estimated market value of a house. Appraisals are done by a professional appraiser who is well-versed in current housing trends. They’ll take a look at everything in the home to see what kind of condition it’s in. This can include the condition of the interior/exterior, number of rooms, upgrades, the home’s age, and more.
Next, they’ll examine recent nearby sales to see what other houses in the same condition are selling for. With this data, the appraiser will be able to estimate the fair market value of the house at the current time.
Why Do You Need a Home Appraisal?
There are many different reasons you might need a home appraisal. Typically, they’re an essential part of buying a house. Because you’ll be getting a loan from a bank, the financial institution wants to make sure its investment is sound. If you were to default on the loan and go into foreclosure, the bank would try to recoup its losses by selling the home. If you paid above market value for the home, the bank will lose even more money. That’s why appraisals are usually performed during the home-buying process.
However, it’s not just for the bank – there are benefits for you, too. Appraisals prevent you from overpaying on a home. They’ll also give you details about the home, such as exact dimensions, lot sizes, and even flood zoning.
How to Find a Qualified Appraiser
You definitely want to make sure you have a qualified professional performing your appraisal. When looking for someone to do the job, try contacting your state’s licensing agency to get a list of top performing appraisers. You can also turn to the internet for help, as there are plenty of reviews and recommendations out there for your specific area.
However, the easiest method might be to just get a referral from your bank or real estate agent. Since they deal with this type of thing on a daily basis, there’s a good chance they have a few good appraisers on speed dial.
Tips for Getting a Good Appraisal
If you’re getting an appraisal on your home before you sell it, there are plenty of things you can do to boost your home’s value. The first step to take is to fix any small problems. For example, if you have a crack in the wall or a chip in a door frame, it’s best to tackle these projects to give your home a better appearance. While an appraiser won’t count a messy house against you, it also can’t hurt to make all the beds and put away all extra items to help your home look fresh.
Curb appeal is also important in determining the value of a home. Spruce up your exterior by cutting the grass, repairing broken garage doors and crumbling walkways, or planting nice flowers. You’ll really want your home to shine, especially when compared to neighboring houses. The appraiser will also be interested in learning about any improvements or upgrades you made while you owned the home. If possible, create a list of all these add-ons so they can see the money you’ve invested.
With these tips in mind, there’s no doubt that you can rock your appraisal and get the maximum possible value for your home.
The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of Altisource Online Auction, Inc., Altisource® or any Altisource affiliate. The foregoing content is not intended to constitute, and in fact does not constitute, financial, investment, tax or legal advice by the author, Altisource Online Auction, Inc., Altisource or any Altisource affiliate.
