Just because you accepted a great bid on your home doesn’t mean it’s a done deal. realtor.com says the closing process has only begun. And when it comes to the appraisal, that can be one of the scariest parts for the seller.
Lenders often use their own appraiser, giving you no say in who’s deciding the value of your home. But there are a few things you can do, as the seller, to navigate the process. Appraisers tell realtor.com they aren’t magicians and it’s helpful to sellers if they have a good understanding of the appraisal process. It’ll go a long way toward understanding how your home’s value is determined.
realtor.com says the appraiser won’t know what your home is worth when they walk through the door. But the appraiser will pull comparable listings (“comps”) from nearby neighborhoods. These are homes similar in style, location, and footage sold within the past few years. After that, it’s time to look at your house to see its condition and quality along with other factors that impact the cost of the home. The process usually takes days.
To get your home ready for the appraiser, declutter and do some cleaning. While the appraiser isn’t determining the value based on the cleanliness of your home, you still want your home looking its best according to Aladdin Appraisal’s founder, Adam Wiener, in Auburndale, MA. He says, “A good appraiser won’t devalue your home because it’s messy, but a neat, organized home might help you.”
Wiener says to also make sure everyone who lives at your home is prepared for the appraiser’s arrival, including teenagers, who will need to come out of their rooms.
Make sure your paperwork is in order. It’s best to send all the information about the house over ahead of time. Appraisers will ask for this upfront. Michael Coyle from The Coyle Group in Lafayette Hill, PA recommends having on hand a list of major improvements as well as detailed info about the age and condition of the roof, HVAC systems, and major appliances. For any DIY projects, make sure you have the original permits. A room addition that adds, say, 500 square feet to your home can make a big difference in the appraisal amount.
Wiener says to go the full-disclosure route. But he also says to not put too much stock in home improvements. While a brand-new kitchen may look great, it might not raise your home’s market value. That goes double for a new pool, which “does not bring as much value as people think,” Coyle says, unless you live in a hot climate like the valley. Then you might get a little more.
Appraisers say it’s best not to fudge the numbers because in the end, they won’t be fooled.