Three Things You Should Do Before Your Real Estate Appraisal

Real Estate Blog

Whether you're trying to sell your property or open a home equity alone, a real estate appraisal can be incredibly important to your financial future. Many homeowners make the mistake of entering into an appraisal without preparations, assuming that their home will show its true value. Real estate appraisals can be somewhat subjective, however, and there are some things that a homeowner can do to hopefully improve their home's first impressions.

1. Clean Up Inside and Outside

A little home care can go a long way. While the appraiser is going to be looking for structural and foundation issues, they will also keep the general appearance of the property in mind. If it appears as though the property will need to be fully painted or have the carpeting ripped out, it will affect the value of the property itself. Approach an appraisal like a home inspection or sale: every little bit counts.

2. Get Documents On Improvements

The appraiser won't just look at the condition of your home: they will also often look at any improvements that you made in addition to the historical value of your property. If you purchased your property for $200,000 and made no improvements to it, the appraiser will know that your market value is around that amount. On the other hand, if you added $50,000 in well-documented improvements, the appraiser will often take it into consideration.

3. Fix Any Electrical or Plumbing Issues

Electrical issues and plumbing issues can affect the value of a property far more than it costs to fix -- plumbing and electrical systems represent a 181% ROI when renovating. This is because there are very few home purchasers who want to deal with fixing these types of issues, and banks rarely want to deal with them in the event that they must repossess the property. It's usually easier and more cost-effective to fix these issues yourself even if you're not intending on selling your home; it will improve property values and make banks more likely to offer loans or credit lines.

Homeowners who feel as though their appraisals were not fair can always get a second appraisal. An appraisal will generally come with a breakdown, so the homeowner can see areas in which their home may have been found wanting, or may need improvement. Of course, an appraisal will also often increase property taxes, so it's beneficial for the appraisal to be as accurate as possible, rather than just as high as possible. Contact a company like Shaske & Zeiner Appraisal Consultants Ltd for more information.

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