Have you thought about the appraisal process when preparing to sell your home, take out a home equity loan, or refinance your mortgage?
Many people don’t think about increasing home value for appraisal until they schedule it. If you're selling, refinancing, or taking out a home equity loan, consider the appraisal process in advance. Here are some key points.
Appraisal Pitfalls
Always think about the appraisal process and make improvements with it in mind. Here are some pitfalls from failing to prepare.
The Sale May Fall Through
If you're selling your home and the buyer believes the price is fair, you might feel satisfied with the offer. But if the appraiser values the property below the contract price, your buyer might demand a lower price or walk away, causing the deal to collapse.
You Might Not Get the Home Equity Loan or Mortgage Refinancing That You Are Hoping For
Many people don’t worry about increasing home value for appraisal, thinking they can't make a significant difference with their budget and time. However, this is a misconception. Just as you stage a home for a showing, you can impress the appraiser with small enhancements.
What are Appraisers Looking For?
Generally, you should show the appraiser that you're improving your home, not neglecting it. Show the appraiser your investments. Visible investments like outdoor lighting or attractive landscaping show you take pride in your home.
Appraisers consider the local housing market, but they also focus on three key areas: your home's interior, the property and exterior, and any upgrades. Knowing what appraisers seek is crucial when deciding how to increase home value for appraisal.
Inside Your Home
Appraisers measure your home's square footage and each room's size. They examine floors, countertops, and built-in features. In addition, they evaluate the age and condition of these elements. They also inspect all appliances and systems like cooling, heating, & electrical.
However, moveable items like furniture and tabletop appliances don't count, so don’t invest in these for appraisal.
Property and Exterior
The appraiser evaluates your home's age and maintenance level. Older features can be valuable if they're historic or aesthetically pleasing. However, ensure you maintain or restore older parts of your home. The appraiser will also check for overgrown vegetation, bald lawns, and other landscaping issues.
Upgrades
If you've added features or made improvements, your home's value will increase for the appraisal. Ensure any additions comply with codes; otherwise, they might decrease your home's value.
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How to Increase Home Value for Appraisal
Here are some simple things that everybody can do (without breaking the bank) to improve your home's worth in the eyes of an appraiser.
1. Check Your Home for Safety and Code Adherence
Above all, pay attention to safety. One of the quickest ways to lose merit in the opinion of an appraiser is an inadequate amount of smoke detectors and carbon monoxide detectors. Remember that carbon monoxide detectors should be installed within at least 15 ft of every bedroom and smoke detectors need to be in each bedroom at the doorway.
If you have made any additions to your home it is essential not only that they have permits but that you have the permits available to show the appraiser. Check federal regulations on smoke detectors, carbon monoxide detectors, and other federal and local building codes to make sure that everything is up to code and you have the proper permits for any additions.
2. Improve the Appearance of the Exterior of Your Home
Appraisers are subject to first impressions, just like everybody else. If your home's exterior paint is chipped and faded or your lawn has dead patches, the appraiser will expect other signs of neglect. Plant new landscaping, especially grassy lawns and lush flowerbeds, to create a cared for appearance.
Concentrate improvements on the front yard or wherever the appraiser will arrive first. The appraiser will go over every inch of your property, but they are most likely to notice landscaping initially. Your clear attentiveness to your lawn and garden may convince appraisers that you are a caring homeowner even if exterior paint is a bit faded or the roof could be newer.
It isn't a bad idea to consider having an automatic sprinkler system installed to keep your new landscaping looking its best and to encourage quick growth. You have enough to do without worrying about keeping the grass watered, and you don’t want to lose your landscaping investment to draught.
3. Polish the Interior
You may not have time to paint the entire interior of your house, but it is well worth it to brighten the trim or change the color of the front door. Polished floors can go a long way to improve the look of a room.
If you are making investments into replacing appliances or flooring, know what buyers are looking for. Hardwood floors and stainless steel appliances will do more to raise a home's value than new carpet and white appliances.
If you have to make choices about which rooms to update and which to leave as is, kitchen and bathroom remodeling remain the gold standard for increasing your home's value. When the appraiser is coming, make sure that bedrooms and bathrooms have been staged as if for a potential buyer and everything is clean, tidy, and smells nice.
4. Pay Attention to the Details
Home appraisers tend to be detail-oriented people. Try to see your property and home through their eyes. Is all of the mechanical equipment functioning properly? Check pool pumps, fountains, sprinkler heads, hoses, etc. Is it clear that attention has been paid to landscaping and outdoor lighting, not just for aesthetics but for security? Does every light switch work and toilet empty with just one flush?
These are the sorts of details that separate a homeowner who has been dedicated to the care of their home and property from homeowners who haven’t paid as much attention.
5. Track Improvements
Make sure to record every improvement that you make to your home. This allows you to keep a record of your home’s transformation and increased value. Before and after photographs are highly effective at demonstrating both the work that has been done and proving that nothing has been hidden.
It is a good idea to put together a highlight sheet, which is a document of only a page that describes all of the updates done to the home. You don't want this sheet to get longer than one page, because appraisers are busy and want to be informed of all of the important changes without having to be bogged down with a lot of reading.
Include permits, warranties, and dates that projects were completed. Be thorough with your highlight sheet. Include aesthetic improvements, structural additions or overhauls, or new systems like AC unit or water heaters. New appliances like stoves, refrigerators, and washing machines should be included as well.
How to Increase Home Value for Appraisal with American National Sprinkler & Lighting
An automatic sprinkler system or outdoor lighting from American National Sprinkler & Lighting is an excellent investments into your home, sure to raise your property value. Call us today to start a home improvement project and to learn more on how to increase home value for appraisal.
Improvements Add Direct Value to Your Home
Be sure to add your sprinkler or outdoor lighting system to your highlight sheet for the appraiser. One of the most straightforward ways to raise your home's value is to make improvements. A high-quality sprinkler or lighting system is an immediate added benefit to the value of your home. You may even find that your investment pays for itself in the increased appraisal value.
Up Your Curb Appeal
A quick and effective way to improve the look of your home is to put in a beautiful new lawn or flower bed. Without regular and consistent watering your new investment may quickly become a disaster. Protect your investment and add to the value of your home with an automatic sprinkler system.
Show That You Care About the Details
These kinds of investments show that you care about even the smallest details of your home. You make sure your lawn and garden are well-watered and care about the aesthetics and safety of your home, even in the evening. This indicates that you care about all other aspects of home and property management as well.