When you’re buying or selling a home, one of the most important factors is the appraisal. An appraisal is an unbiased assessment of a home’s value by a professional appraiser. The appraisal is typically ordered by the lender to ensure that the loan amount is in line with the value of the home. A low appraisal can be a major setback for both buyers and sellers, as it can delay the closing, cost money, and even kill the deal altogether. In this post, we’ll share some tips to help you avoid a low appraisal and keep your real estate transaction on track.
Know Your Market
One of the most important steps you can take to avoid a low appraisal is to know your local real estate market. This means understanding the current trends, including what homes are selling for and how quickly they’re selling. Take some time to research recent sales of similar homes in your area. Look for homes that are similar in size, age, and condition to your own. This information will help you understand what your home is worth and what you can reasonably expect from an appraisal.
Make Repairs and Improvements
Another key factor that can impact your appraisal is the condition of your home. A home that is in poor condition will likely receive a lower appraisal than one that is well-maintained. To avoid a low appraisal, take some time to make necessary repairs and improvements to your home. This can include fixing leaks, replacing outdated fixtures, and updating landscaping. Even small improvements can make a big difference in the overall value of your home.
Believe it or not, a cluttered and messy home can actually impact your appraisal. When an appraiser comes to assess your home, they need to be able to see everything clearly in order to provide an accurate assessment. If your home is cluttered or messy, it can be difficult for the appraiser to see the true value of the property. Take some time to clean up and declutter your home before the appraisal. This will help ensure that the appraiser can see everything clearly and provide an accurate assessment.
Be Present for the Appraisal
When the appraiser comes to assess your home, make sure that you’re available and present. This will allow you to answer any questions that the appraiser may have about the property. You may also be able to provide them with additional information or documentation that can help support your home’s value. For example, if you recently had a home inspection done, you can provide the appraiser with a copy of the inspection report.
Provide Recent Sales
One of the best ways to ensure that you receive a fair appraisal is to provide the appraiser with recent sales of similar homes in your area. These are known as “comps” or comparable properties. When you provide the appraiser with comps, they can use this information to ensure that your home is appraised at a fair market value. To find comps, look for homes that are similar in size, age, and condition to your own. You can find this information online, or by talking to a local real estate agent.
Consider a Pre-Listing Appraisal
If you’re selling your home, you may want to consider getting a pre-listing appraisal. This is an appraisal that is done before you list your home for sale. The pre-listing appraisal can help you understand what your home is worth and identify any potential issues that could impact the appraisal later on. This can help you address any issues before the appraisal and ensure that you receive a fair assessment
If an appraisal comes in “low”, it’s important to stay calm and work with your real estate agent to determine the best course of action. You may be able to renegotiate with the buyer, or you could consider making improvements to your property to increase its value. In some cases, you may choose to lower your asking price to make the sale.