A critical step during the home selling process is obtaining a home appraisal.
What is a home appraisal?
A home appraisal is an unbiased estimate of how much your home is worth in the current market. All lenders use the appraisal during the mortgage application process as an objective way to assess the value of the home. When a homebuyer applies for a loan, this allows lenders to ensure that the requested amount of money is appropriate for the true value of the home.
Why is a home appraisal important?
If your home appraisal is far lower than the accepted offer on your home, then the bank may not be willing to lend money for the selling price. If this happens, the deal between the homebuyer and home seller have to go back to step one to agree on a lower price. It creates an extremely stressful and time-consuming situation that can be avoided if you do your best to increase the home appraisal value before it’s estimated.
What You Can do to Increase Your Home Appraisal Value:
Add Curb Appeal: You don’t have to go as far as installing new siding, but touching up the exterior of your home with a new paint job on your front door, painted trim, refreshing the flower boxes, and adding fresh mulch around your trees and in your garden will add a lot of instant appeal.
Staging: Make sure your walls look clean and undamaged. Touch up the interior trim and walls. Stage all the rooms in your house with area rugs and furniture to display well-defined uses for each space. Depersonalize by taking all the family photos and kids artwork off the walls.
Track All Your Home Improvements: To help show how much money you’ve put into your house it’s best to take before and after images and save all the receipts from jobs.
Make the right improvements: Low-cost projects that have a high return on investment will be best for you. These include changing out all the outdated light fixtures, faucets, door knobs and window treatments. Read more here.
Learn What Homeowners Want: New homeowners want stainless steel appliances and hardwood floors. They want fresh, bright spaces with a feeling of openness. Your home is only worth what someone will pay for it, so be sure to give your prospective buyers what they want.
Compare to Other Homes: Visit nearby homes similar to yours that have sold recently. Your home should stand out if you want to increase your appraisal value.