Low appraisals are becoming a bigger problem for many would-be buyers and sellers. Appraisals are based on recent sales prices of comparable properties. In rising markets (as we are currently entering into in our locale) those comparable sale prices might not be high enough to support the newest deals.
If your real estate professional has done their homework properly and educated you on current home values and you have listened to them and priced your home according to their recommendations you should not have a problem with your home appraising for the final agreed upon sale price on your home. Your real estate professional should be able to support that sale price if there is any question about value from the appraiser.
Listening to your real estate professional about value and setting the asking price on your home is critical for three reasons…First, you need to have realistic expectations on a final sale price which will allow you to have the proper information to strategize with regard to your next step whatever that is…Second, by getting the proper pricing in place from the start will allow you to maximize your final sale price and minimize your time on the market which will get you where you want to go quicker… and Thirdly, Even if you were able to get a buyer to agree to a higher sale price and the appraiser cannot support that sale price with an appraisal you will more than likely not be able to consummate the sale (the bank will only lend up to the appraised value) and you will need to lower your sale price at that point anyway and or maybe even have to start over.
The best thing a homeowner can do to get the highest appraisal possible is make sure they have all the important features of the home readily available for their real estate professional and the appraiser when that time comes.
If you’re going to do renovations, start with your kitchen and bathrooms as these areas will yield the highest return on your investment. Floor covering improvements, fresh paint, tasteful relevant décor’, and attention to landscaping for a smaller investment will have a large impact on both marketability and value as well.
Neat and clean helps as well both inside and out…Make sure you have uncluttered and thoroughly cleaned your home as well as having trimmed and spruced up the yard and exterior.
If you’ve put money into the house, prove it…”Before-and-after photos, along with a well-defined spreadsheet of what was spent on each renovation, should persuade an appraiser to turn in a number that exceeds what he or she would have first put forward. Also, don’t forget to highlight all-important structural improvements to electrical systems or heating and cooling systems which are harder to see, but can dramatically boost an appraisal. Keep your receipts and produce them for an appraiser if needed or asked for.
If you are home at the time of the appraisal…don’t follow the appraiser around like a puppy…”It’s a major red flag for the appraiser that there may be a problem with the home”…Give them their space.
And while you’re at it, make the appraiser’s job as pleasant as possible by giving your home a pleasant smell. At a minimum, clean out the litter box. Baking some fresh cookies and offering him one or two probably won’t sway your appraisal, nor should it. But it couldn’t hurt.
Contact “The Tierney Team” Anytime – We’re happy to help! (517) 853-6397