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What You’ll Learn
What appraisers look for when evaluating your home.
Practical tips for preparing your property for an appraisal.
A home appraisal checklist tailored for refinancing.
Key improvements that can increase your home’s value.
How to understand and leverage your appraisal report.
What appraisers look for during a home appraisal
When an appraiser assesses your home, they evaluate several factors that contribute to its overall value. Knowing what appraisers focus on can help you better prepare your property.
Size and Layout
The square footage and overall layout of your home play a significant role in determining its value. Homes with more usable space generally appraise higher, so any functional improvements or optimizations can be a plus.
Exterior Condition
Your home's exterior creates the first impression. Appraisers check the condition of the roof, siding, windows, and any other structural elements. Keeping these in top shape signals that your property is well-maintained and less likely to require costly repairs.
Interior Condition
Appraisers examine the state of your home's interior, paying close attention to essential systems like plumbing, HVAC, and appliances. Well-maintained or upgraded systems can positively impact the value, so it’s important to ensure everything is in working order.
Renovations and Upgrades
Have you recently renovated your kitchen or bathroom? Made significant upgrades like installing new flooring or energy-efficient windows? These improvements can add substantial value to your home. Appraisers consider these updates when determining your home’s worth, especially if they add functionality or energy efficiency.
Tips for preparing your property
Even small efforts to prepare your home for an appraisal can make a big difference in its value. Here are some practical steps to ensure your home is appraisal-ready:
Clean and Declutter
While the appraiser’s primary focus is on structural aspects, a clean, organized space can help create a positive impression. Take time to declutter and clean both the interior and exterior of your home.
Safety First
Ensure all safety measures are in place. Smoke detectors should be functional, handrails secure, and other safety features up to code. An appraiser will take note of any missing or non-compliant safety items.
Fix Minor Damages
Small issues like cracked tiles, leaky faucets, or peeling paint can negatively impact the appraisal. Tackle these minor repairs before your appraisal to present your home in its best condition.
Yard Maintenance
Curb appeal matters. Make sure your lawn is trimmed, any overgrown trees or bushes are pruned, and walkways are clear. A well-maintained yard can subtly enhance the perceived value of your home.
Home appraisal checklist for refinancing: What to focus on
Refinancing appraisals follow a similar process, but the focus may shift slightly, especially if there have been changes since your original mortgage.
Recent Repairs or Improvements
Appraisers will compare the current condition of your home to its state when you initially purchased it. Be sure to highlight any repairs or improvements you’ve made, as these can increase the appraised value.
Increasing Value with Small Upgrades
Refinancing is the perfect time to make some quick upgrades. Fresh paint, new appliances, or energy-efficient features can go a long way toward boosting your home’s value. Even minor improvements can make a significant difference.
For more detailed refinancing preparation tips, check out this home appraisal process guide.
Boosting your home’s value with improvements that pay off
Strategic home improvements can significantly increase your property’s value. Here are some that offer the best return on investment:
Exterior Upgrades
Curb appeal remains a key factor in home appraisals. Consider replacing your front door, applying a fresh coat of exterior paint, or installing new siding to give your home a polished look.
Interior Updates
Kitchens and bathrooms tend to yield the highest returns on investment. Renovating these spaces or upgrading to modern fixtures and flooring can add considerable value.
Energy-Efficient Enhancements
Appraisers consider energy-efficient upgrades like windows, insulation, and energy-saving appliances when assessing a home’s value. These improvements can also help reduce energy costs, which is an attractive selling point for buyers.
For more information on high-return upgrades, check out this home inspection checklist.
Understanding your appraisal report
After the appraisal, you’ll receive a detailed report outlining the appraiser’s findings. Here’s how to interpret the key components of your report:
If the appraisal comes in lower than expected, don’t panic. You can use the report to negotiate with lenders or sellers. It may also be worth pursuing a second appraisal if you believe there were discrepancies in the evaluation.
Click for details on appraisal reports and what they look like.
Use this checklist for home appraisal to maximize value
By following a thorough home appraisal checklist, you can ensure your property is well-prepared, whether you're refinancing or selling. From fixing minor damages to making energy-efficient upgrades, these steps can help maximize your home’s value and ensure a favorable appraisal.
To streamline your home financing process, consider using Better Mortgage's digital tools for pre-approval and appraisals. Get started today and take control of your home’s value!