What to Expect from a Home Appraisal

A home appraisal is a professional estimate of the true market value of a home. It’s always conducted by an unbiased licensed or certified professional ahead of a mortgage being secured against a home for sale. They aren’t interested in the size or features of the property, only that it is worth as much as your buyer wants to borrow! If not, they won’t be able to close on your house and this could put your property back at the start of the selling game.

 

If your buyer is taking out a homeowner loan to purchase your property, there is no way of getting around a home appraisal. Nevertheless, many sellers don’t know what to expect from the process or what they can and should do to make sure that the appraisal matches your selling price, and what your buyer is willing to pay. Here’s what you need to know about what to expect from a home appraisal.

 

Appraisals usually take place fairly quickly

Home appraisals usually happen after you accept an offer and within seven days of an inspector reviewing your home. This will need to be done before the deal can progress any further. Nevertheless, some sellers choose to get a pre-listing appraisal as soon as their home goes on the market. This can help you to prove the worth of your home and secure the asking price that you want and need.

The criteria used to determine the value of your property

Typically, appraisers use five key criteria to determine the value of your home. These are:

• Location
• Age
• Condition
• Additions/renovations
• Recent sales of comparable homes in your area

Many of these are clearly out of your control, but those that aren’t – condition and additions/renovations, should be at the front of your mind ahead of the appraisal. If an appraiser finds an issue with your property, such as structural problems or an unapproved extension, it could negatively impact the value of your home and put your buyers' mortgage at risk.

The seller usually pays for the appraisal

In most cases, the home buyer is responsible for covering the costs of the appraisal, and the fee for this is normally included in your closing costs. However, this rule isn’t set in stone. Typical appraisal costs range from $200-$500, so you could save a decent chunk if you negotiate and ask your buyer to pay it instead. Alternatively, you could even split the cost 50/50.

There are things you can do to prepare for an appraisal

Fortunately, there are steps that you can do to make sure that your home is presented in the best possible light to the appraiser. These include:

 

• Securing any animals so that your appraiser isn’t distracted
• Deep cleaning the inside of your home
• Removing as much clutter as possible
• Creating a clear path to the front door
• Touch up any exterior paint and give your property maximum curb appeal
• Make sure all of your inbuilt/remaining appliances are working, including dishwashers, showers and security systems

Your realtor will be able to give you further pointers on the best way to prepare a home for appraisal.

If you have other questions about what to expect from a home appraisal, don’t hesitate to get in touch with our knowledgeable real estate team at Team Prehoden.