Foreclosures are rapidly rising and property values are threatening to gointo a free fall. So you think there is not much you can do to increase yourhome value during this stressful time? Think again! There are some surprisingly simple things you can do to ensure the highest possible value for your property.
During stable or increasing real estate cycles, an appraiser’s ability to come up with accurate values is easier because there are plenty of available sales on the market. Now, in a declining market, finding adequate sales similar to your property (called comparables) is more difficult. However, you can assist the appraiser and be part of the process. Here are some helpful hints every homeowner should follow to prepare for the maximum home appraisal possible.
Prepare Your Home: Get out the vacuum, dust the shelves, straighten your kitchen, empty the trash and mow your lawn. Consider repainting your walls if they are soiled or have peeling paint. “Making your home and landscaping appear in peak condition will make a positive impression on your appraiser,” says Stephen Miller, Chief Appraiser at Certified Appraiser Network. “If your home is considered to be in good condition relative to the neighborhood, the appraiser should take that into consideration. This will positively impact the value of your home.”
Record Changes: Every home requires upkeep. Keep a list of all improvements you have made to your home as far back as you can remember. Provide this record to your appraiser as proof of the maintenance and improvements you’ve made. This will serve to increase your home’s value. For example, you might have put in copper plumbing 10 years ago but most properties in your area still have galvanized plumbing. Make sure your appraiser is aware of all your upgrades.
Get a Broker’s Price Opinion (BPO): Have a local area real estate agent/broker give you a broker’s price opinion (BPO). They will provide you with comparables and an opinion of their estimated value or value range for your home. Why would an agent or broker do this for you when you are not committed to utilizing their services? A good agent will simply welcome the opportunity to get the exposure in your neighborhood in case you or your friends or family might utilize their services for a future sale. This information can then be given to the appraiser.
If you come across recent sales similar to your property on your own, you can also provide those to the appraiser. Remember, the sales need to be similar in gross living area, site area, bedroom/bathroom count and amenities such as pool, spa, views, etc. If the sales you provide are not similar in these attributes, they may not be considered comparable.
Choose an Appraiser: If you’re refinancing or applying for a home equity loan, the lender will usually choose the appraiser. But if the choice is yours, talk to neighbors and friends for referrals. Find out if the appraiser has experience in your general market area and be sure he or she is a state licensed appraiser. Check out their fees and turnaround time. Appraisals cost upwards of several hundred dollars and take anywhere from 2-4 business days to complete.
The appraiser will examine the interior and exterior of your property, the quality and condition of materials, the physical size of your home and the layout of the property. Once you have prepared your home and have utilized some or all of the suggestions provided here, you can feel good that you were proactive in the process and did your homework - You will have gone a long way toward maximizing the value of your home without being surprised at the end of your loan transaction.
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If you would like more information on this topic you can call Stephen Miller, California State Licensed Certified Appraiser, at (310) 320-7979 or you can email him at appraisal@certifiedappraisersinc.com.
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