Homeowners planning to sell their homes should seriously consider getting an appraisal to ensure the right price for their properties. An appraisal will help you in finding out the appropriate selling price for your home. In technical terms, an appraisal estimates or assesses the value of a home based on the money it brings in a real estate market.

A home appraisal should be done by a professional for it to be considered legitimate. Traditionally, this is requested by a buyer after making a purchase offer to ensure that he or she is not spending so much for the house. Lenders also push for appraisals before financing home buyers. However, homeowners who are unsure of their selling price may request for it before putting their property on the market.

The process

Appraisal values for homes are based on several factors such as comparable sales, replacement cost, number of bedrooms and bathrooms and improvements made on the property. Other factors taken into account are the lot size, the type of community in which the property is situated, real estate taxes and government services. A home located in a prominent area could get a higher home appraisal value while a home in a flood or earthquake zone will most likely get a lower appraised value.

Professional appraisers normally conduct a visual inspection of the home while assessing its age, condition, amenities and upgrades. They estimate a value for the house according to the cost it will entail to build a similar home or by comparing the property to similar homes that recently sold in the area. Although appraisers do some inspection, their job is different from the home inspectors who are more concerned about the physical structure of a house.

The report

A home appraiser, after doing his work, issues a document called the appraisal report. This contains vital information such as the home address, a description of the lot and neighborhood including market factors like trends in property value. In addition, the report lists the features of the house describing its exterior and foundation, the number of rooms, the materials used in each room such as floorings, electrical systems, kitchen equipment and a description of the garage and attic.

A comparative analysis is also contained in the document. This section gives a description of two to three comparable homes in the neighborhood with similar features and which were sold recently. The home’s estimated value and the process used to arrive at such estimate will then be revealed by the appraiser.

To make sure that the appraiser’s inspection goes smoothly and you get a higher appraised value, a homeowner needs to follow some steps. Professional appraisers cannot be fooled so do your best to make him comfortable while he evaluates your house.

Prepare your home and make it presentable to make a good impression. Do some thorough cleaning of the floors and walls, organize your appliances and accessories and take away the clutter. It’s also best to repair defective parts such as windows, faucets, railings and other potential hazards. If you’ve done some renovations and used better materials, you can bring these to the attention of the appraiser.

If you have kids and pets, keep them away while the appraiser is doing his job. Don’t give him reasons to be distracted if possible. Control your urge as well to inform the appraiser of comparable homes in your area because he absolutely knows what he’s doing. Finally, be friendly and cooperative to this guy as this will more likely contribute to a favorable impression.

See Also: Market Value vs. Appraised Value

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