The Appraisal Process Explained
Obtaining financing or re-financing for your home will always involve an appraisal. But what exactly is that and how do you prepare? At Your Favorite Real Estate Team, we are experts in real estate at the Lake of the Ozarks and guide people successfully through the process every day. We thought we would share some tips about the appraisal process to help you understand how to bring out the most in your home’s value.
What is it, and who orders it?
A real estate appraisal is in inspection by a licensed
professional to determine the true market value of a home. It is required by lenders to ensure that they
are not lending more than the property is worth, and it also benefits the buyers
by letting them know they are not paying too much for the house they are
buying. Generally, it is the lender who
orders the appraisal, and the buyer who pays for it.
What is it based on?
To determine the true worth of a home, the appraiser will
look at several things. While looking at
the home, he or she will take note of the basic condition of the home and its
age. They will consider the size of the house,
numbers of bedrooms and bathrooms, and any extra features it may have such as
hard wood flooring or a swimming pool. The appraiser will look for any major
improvements such as remodeling or room additions. They will factor in the
location of the home, and the sale price of any comparable property (similar in
location and size) that has sold recently.
How to prepare.
If you are preparing for an appraisal, there are several
low-cost things you can do to boost the appraisal value of your home. Keep in mind this is about substance, not
surface. If your beds or unmade or there
are dirty dishes in the sink, that is irrelevant to the value of your
home. But if there are stains on the ceiling
or carpet, cracks or chips in the walls, broken windows, fixtures that don’t
work properly, or an obvious lack of maintenance, that can have a negative
affect on your home’s value. It is worth
it to take a walk about your property with a fresh perspective to look for
anything that stands out as needing repair.
Finally, if there are parts of your home that are obviously dated, bring
those up to date to keep your home from feeling older than you want it to.
It is also a good idea to think about your curb appeal. View your home from the street and from different angles in the yard. If you are selling a lake front home, do the same thing from the dock looking back at the house. Put away yard tools, lake toys, extra chairs and cushions, etc. that may feel cluttered or make the spaces look smaller. In the same way you would think about staging your home to sell, you want to prepare your home for the appraiser as well (even if you are only refinancing). Finally, while the cleanliness of your home does not technically determine its worth, a house that is extremely unkept or has odors can give the impression of poor maintenance. So, keep that in mind as you get your home ready.
If you are buying or selling a home at the Lake of the Ozarks, appraisal value matters.
That is why we wanted to share some ideas to make the process
easier. Your choice of realtor also
matters, and at Your Favorite Real Estate Team, we are the best real estate agents at the Lake of the Ozarks and we are dedicated to helping all of our
clients achieve their dreams. When you are ready to buy or sell, we are
here for you too.
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