When it comes to selling your home there are many steps that you will have to encounter.
Finding a buyer is only the first step. Getting to the closing table may have you jumping through hurdles to get through the home inspection and the home appraisal.
We cannot stress enough that getting your home ready to sell and arriving at the right selling price will help you avoid many of these hurdles.
If the buyer is getting a loan, the lending institution usually requires an appraisal. They will hire an appraiser who will evaluate your home and state it’s worth. The price will be determined by the comparable homes in your area.
The prices in today’s real estate market are making it hard to keep up with the current value of homes.
If the appraisal comes in too low, you may have to negotiate the price or if you cannot reach an agreement, you may lose the buyer. Most buyers do not want to pay over the appraised value.
You will never have control over the appraised value, but you can take steps to help meet the asking price.
Remember, the appraiser can only go by the recent sales of other comparable homes, and many times they have not been in the comparable home. We have experienced this firsthand. We had to point out upgrades and improvements.
8 ways to prepare for an appaisal:
- If you are worried your home may not appraise, hire your own appraiser before putting you home on the market.
- Curb appeal. Upgrade your landscaping. According to Virginia Tech Research you can boost your homes worth by 10-12%.
- Take a look at the comparable homes sold in your area. Your real estate agent should help you with that.
- Go Green. A few healthy plants displayed throughout your home will give it a fresh, well-taken care of appearance.
- Make sure everything is properly working. Replace light bulbs, turn on the pilot lights, replace any broken fixtures. The appraiser doesn’t go into as much detail as the inspector, but it is in your best interest to show off your home.
- Do a deep cleaning. Even though you are probably tired of cleaning when showing your home, appearance is important, and may pay off.
- Quick fixes. Take care of the little things that need to be fixed. Spending a few hundred dollars to fix minor repairs may determine the worth of your home.
- Talk up your home. Most sellers are around when the appraisal is done. Point out the upgrades and improvements in your home. Give the appraiser space, but don’t be afraid to talk up your home. The appraiser will most likely appreciate your input.
Getting through the inspection and appraisal can be trying but having your Real Estate Agent arrive at the right asking price and having your home in tip-top condition, the appraisal and inspection will be a pleasant experience.
THOUGHT FOR THE DAY: Sometimes you will never know the value of a moment until it becomes a memory. (Dr. Suess)