Understanding the home appraisal

Understanding the home appraisal

The appraisal of a house is an important step in the home buying / home selling process. This process is done on the lending bank’s behalf. The bank will not lend out money to the buyer if the buyer has agreed to pay more than what the appraiser’s professional opinion states the property is worth. In this regard, the bank and the buyer have a common interest in the appraisal. The bank sort of acts like a de-facto parent for the buyer by not allowing them to over pay for the property.  If the buyer really likes the house, they are still able to buy it, but not without adjusting the contract price or the down payment.

We came across this video on MSN “8 ways to boost your home’s appraisal“. While the video does not actually contain a list of ways to boost your home’s appraisal, we thought that it did contain important information.  You can look for errors in the report or you can look for a better set of comparable sold houses. There is no guarantee that the lender will change their mind, but it is worth a shot.  Another approach would be to take a few simple steps that will assist in reaching a higher value for your home. The appraiser is going to be taking pictures of every room in your house. Make sure that it is as tidy and uncluttered as possible. Clutter makes rooms appear smaller than they actually are. Outside pictures will be taken as well… make sure that your lawn is neatly manicured and all garden equipment, outside toys, etc. are in their place. Be your own advocate and point out improvements and upgrades.

It is best to have an appraiser who is local and is an “expert” in your market. They will have the best understanding of the town and the property.