An appraisal can seem like a daunting task with so many unknowns and a lack of information available to determine what to prepare for. Not to worry, at Alternative Valuation Partners, LLC we are here to simplify the process with transparency and the best advise to prepare for your appraisal appointment.
This article will lay out steps to take prior to your appraisal appointment, information on what will happen during the appointment, and common misconceptions.
Preparation Steps
Make Your Home Clean and Tidy: The appraiser is at your property to observe the features, condition, and updates of your property. Keeping your house clean and tidy allows the appraiser to accurately observe these aspects of your home.
Take Care of Miscellaneous Repairs: Minor repairs such as missing outlet covers, damaged drywall, or a missing doorknob are best to be taken care of before the appraisal inspection. Minor repairs can delay your appraisal and cost more money as some lenders require these repairs to be completed prior to the loan being approved. In addition, necessary repairs often have a bigger impact on value versus the cost of repairing them prior to your appointment.
Crate Pets During the Appointment: Often times dogs/cats can be overly excited for a new visitor. It is best to keep pets crated are outside to ensure that the appraiser is able to easily observe all areas of the home.
Have Your Attic and Crawl Space Accessible: Many lenders and banks require an inspection of the attic/crawl space and having these areas accessible for the appraiser upon arrival makes it easier for the appraiser to obtain necessary photo's of these areas and may save you money. Placing a ladder underneath your scuttle and having your crawl space access already open will ensure that the appraiser can get these required photos. When not accessible the appraiser is required to come back out to inspect these areas which costs an additional fee to you.
Have A List of Upgrades Handy: Not all items in a home are observable and laying out the repairs/upgrades completed on your home allows the appraiser to incorporate all the findings in the appraisal report and will give you the most accurate report possible. This can be a printed sheet or you can fill out Alternative Valuation Partner LLC's Home Owner Questionnaire.
Make Sure All Rooms, Buildings, and Areas are Accessible: Typically the appraiser is required to inspect all areas of the home including every room, the attic, the crawl space, the basement, outbuildings, sheds, etc... In addition, it is important that no one is sleeping in the home preventing access to a room. If the appraiser is unable to inspect an area of the home the appraiser may be required to come back out to inspect these areas which costs an additional fee to you.
What Happens During the Appraisal Appointment?
An appraiser is coming to your property to observe, collect data, and report this into the appraisal report. This will include measurements of your property to determine the size as well as buildings and porch, patios, or decks. The appraiser will obtain photos of all of these areas which will be incorporated within the appraisal report. He/She is also observing for any issues or repairs needed during the appraisal inspection and will conduct a home owner interview to determine recent updates, repairs, or related questions. The appointment typically lasts between 20-45 minutes but this can vary depending on the size and complexity of your home.
Common Misconceptions
A Home Appraisal is The Same as a Home Inspection: A real estate appraiser will take into account faults and defects that are openly visible to the naked eye and obvious to a layperson. If a fault, defect, hazard, or physical condition exists, that is not disclosed to the appraiser in written correspondence, the appraiser will not be able to disclose and factor this in to the appraisal. Our real estate appraiser are NOT a licensed structural engineer, termite inspector, mechanical systems expert, swimming pool/hot tub expert, environmental analyst, mold, spore, radon gas analyst, well water expert, external & internal veneer inspector, chimney crown & flue inspector and this real estate appraisals should not be relied on to disclose those faults, defects, hazards, or physical conditions.
Cost Per Square Foot Determines a Value of a Home: The appraiser provides a much more detailed analysis of your property including but not limited to location, size, bed/bath count, condition, lot size, etc.... A cost per square foot pools all of these factors together and is a generic concept that does not factor in individual differences like a home appraisal will.
The Appraised Value will Vary Based on if it is for the Buyer or Seller: The appraiser is providing an unbiased opinion of market value and has no vested interest in the transaction. The appraiser conducts themselves with objectivity, independence, and impartiality.
Repair Costs Effect Value at The Cost of Repairs: During the appraisal appointment, repairs needed may be noted and will have an affect on market value. The cost of this repair to the home owner varies from the effect it will have on your homes value. This is due to the appraiser analyzing the market reaction that the average buyer would have knowing that an item in the home needs repair. Example: Your roof needs to be replaced at a cost of $10,000. While the repair is only $10,000 the effect it will have on market value is typically much more as typical buyers will have to deal with this expense and the home would not be "move-in ready".
Following these steps and staying informed will allow the appraisal appointment to go more smoothly and your preparation can save you time, money, and bring the market value of your home up. Please fell free to engage with us by commenting below.
Comments