Home appraisal reports provide valuable data for real estate transactions.
However, an appraiser’s overall opinion of your home might increase or decrease its value by thousands of dollars.
Understanding how to increase your home’s appraised value and which things to avoid could help you obtain a more favorable valuation from a licensed appraiser.
About Residential Real Estate Appraisal Reports
To make an apples-to-apples comparison, state-licensed appraisers will use a Uniform Residential Appraisal Report to document specific aspects of your home.
The report uses a side-by-side method to compare your home against three or more properties nearby that recently sold.
For features within your home that’re superior to comparable homes, the appraiser will adjust the value upwards and detract amounts where your home is inferior to the others.
Lenders rely upon the bottom line valuation that an appraiser provides.
Increasing Your Home Appraisal Value
As a property seller, a higher appraisal value may lead to a stronger listing price.
Although, if you’re planning to refinance your mortgage loan, increasing your home appraisal value might enable you to secure a larger loan amount or a lower mortgage interest rate.
Shown below are three ways to increase a home appraisal.
Focus on Your Home’s Curb Appeal
A tidy exterior appearance is overwhelmingly more desirable than a view that has negative aspects.
Maintaining a well-manicured lawn and neatly trimmed shrubs can stand out amongst neighboring properties and reflect some pride of ownership.
Clean exterior areas that are free of debris and clutter can also influence a property’s value versus a yard that’s filled with junk and other items that create an eyesore.
Make Interior Repairs
Where your budget allows, it’s wise to tackle items, such as peeling paint, drywall holes and worn or damaged carpet.
For less than a few hundred dollars, you may be able to make minor interior repairs that enhance the visual appearance of your home.
The money spent and some minor interior repairs could lead to a home appraisal value that increases by several thousand dollars.
Share Details About Your Home Improvements
If you’ve made valuable upgrades since you purchased your home, it might increase your home appraisal value.
Point out home improvements that’ve been completed and provide photos before the work was done.
For major renovations, you can present invoices from licensed contactors that document your cost of the improvements.
3 Things Could Negatively Impact Your Home Appraisal Value
A residential appraiser is looking for good and bad features that impact the property.
The Uniform Residential Appraisal Report must be accurate and unbiased.
Therefore, it’s important to clear up as many defects as possible.
Shown below are 3 things that could hurt your home appraisal value.
Don’t Leave Any Renovation Projects Unfinished
Unfinished improvements are aesthetically unappealing.
Any projects, such as new flooring, loose fixtures (toilets, ceiling fans, tiles) and cabinet doors should be finished.
Improvements that are half finished cannot receive full value and could potentially be deducted from your home appraisal value.
Don’t Overlook Your Major Home Systems
Before a scheduled home appraisal inspection, you should check your home’s mechanical systems.
Look for missing roof tiles from the outside of your home and check your roof from within your home.
Check throughout your home for roof, ceiling and toilet leaks.
Ensure that your heating and air conditioning systems are working.
Also, your home’s plumbing system and electrical system should be working.
Don’t Ask the Appraiser to Obtain a Specific Home Appraisal Value
If you’re pressuring the appraiser to obtain a certain home appraisal value, it may be deemed unethical and could lead to an unpleasant experience.
Staying out of the appraisers way unless you have something valuable to add is recommended during your home appraisal inspection.
Loan officers never speak with an appraiser before or after a property inspection, as it’s unlawful and a bad practice to ask for a specific home appraisal value.
Based in Los Angeles, CA, Abo Capital offers home financing solutions and helpful real estate tips.
Contact Abo Capital today to discuss your financing needs.
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