Banks use home appraisals to determine the rate of mortgage loans. These appraisals are important. They can affect the likelihood of a buyer receiving a reasonable mortgage. This, in turn, affects home owners as well. Low home appraisals create a difference between appraised value and sale price. Banks are averse to covering the difference, which lowers your chances of selling. If you would like to know how to keep your appraised value high, make use of the tips below. Here is a guide to improving your home’s appraised value.
Clean And Organize
Overall appearance is going to be the first thing that enters an appraiser’s eye. You can make an immediate impression by sprucing up your home. Reduce any clutter and organize your belongings. Try to keep any signs of uncleanliness like dust and dirty dishes out of sight. If there are scuffs on your walls, make use of touch-up paint. Since you are trying to sell your home, you are probably going to want to keep your home presentable, anyway. Maintaining a pleasant appearance will be helpful in improving your home’s appraised value.
Mention Any Renovations
If your home has gone through any major renovations in recent years, it will help to mention them. New parts and improvements always add to your home’s value. Something as small as a door replacement should be noteworthy enough to mention. Try to avoid making renovations in hopes of raising your appraisal value. They are extremely costly, and you are unlikely to recoup your losses. A kitchen renovation, for example, costs about $57,000 on average. Remodeling magazine’s “Cost vs. Value” report estimates a 68% return on that renovation, making it a negative investment. If you have any recent renovations that were not deliberate, you can expect an improvement in your home’s appraised value.
Make Use Of Comps
Comps, or comparables, are one of the best tools for determining a home’s value. This is a process of contrasting recently-sold homes in a neighborhood. Factors to compare are age, size, square footage and sale price. This helps an appraiser come to an accurate valuation. Try to find data on recently sold homes in your area. Narrow your search down to homes that are similar to yours. Once you have this information, you can pass it on to the appraiser. This is a great way to ensure that you get a fair appraisal. It can also be helpful for improving your home’s appraised value.
Note The Area
Do not forget that your location factors into your home’s value as well. Details, such as your proximity to certain landmarks, are going to be important in the appraisal process. If you are aware of any recent developments in your town, be sure to mention them. For example, if a food business such as Whole Foods opening downtown might be an attractive prospect for potential buyers. Historic events occurring in or around your town might factor in, as well. Keep your appraiser educated on what makes your location ideal. It may help improve your home’s appraised value.
Low interest rates have set an ideal environment for home owners looking to sell. Unfortunately, many spend months without receiving any consultation. This is usually due to a low home appraisal value. Luckily, there are ways to improve your value. You can mention any recent renovations to your home. You can also note your proximity to certain locations in town. Following the tips laid out in this post will ensure that you improve your home’s appraised value.
Photo from http://www.shadowgallery.com/everything-you-need-to-know-about-home-appraisals/