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At HomeLight, our vision is a world where every real estate transaction is simple, certain, and satisfying. A small walk-in closet is typically a closet space between three to five feet wide, that has an opening of at least two feet deep. A small walk-in closet is typically outfitted with hanging rods, shelves, and/or drawers so you can store and organize your clothing and accessories. An appraisal typically takes into account all of the rooms in a residence.
Offer to answer any questions the appraiser may have, but resist the urge to follow them from room to room. Full BioKatharine Beer is a writer, editor, and archivist based in New York. She has a broad range of experience in research and writing, having covered subjects as diverse as the history of New York City's community gardens and Beyonce's 2018 Coachella performance. “Take care of things like broken windows, chipped paint, safety hazards like loose stair railings and any FHA-stipulated items,” recommends Schuell. He says safety hazards that haven’t been repaired can raise red flags for an appraiser who might walk out and ask you to reschedule when the problems have been fixed.
Hire a professional appraiser
An easy step to take before an official appraisal is to look up your home’s estimated value using a free online home valuation tool like HomeLight’s Home Value Estimator . Let’s take a closer look at what you can do to increase your home’s appraised value, including light-lift projects as well as larger investments. Caroline Feeney is HomeLight's Executive Editor / Director of Content. With 7 years of real estate reporting and editing experience, she previously managed content for Inman News and co-authored a book on real estate leadership.
When appraising the home, the appraiser will complete a visual inspection of the home’s interior and exterior by walking the property and grounds. They’ll also drive around the neighborhood, research recently sold comparable homes nearby and analyze public record data. Then, they’ll compile a report on the home’s appraised value and share it with you and the lender.
Appraised value
Whether you’re thinking about selling your home, borrowing from your home equity, or canceling private mortgage insurance , it’s worth considering how to increase home value for an appraisal. In the case of a refinance or mortgage loan, the lender will hire an appraisal through appraisal management companies . These companies provide third-party, outsourced appraisal contractors who are not affiliated with the lender or borrower.
These figures factor into your refinance eligibility, insurance requirements, interest rates, and ability to qualify for a cash-out refinance. Even if you priced your home based on the results of your own pre-appraisal, there’s no guarantee that the buyer’s appraisal number will match. If the buyer’s appraisal report is lower than the agreed-upon purchase price, the lender won’t approve the financing as-is.
Alternatives to using a pre-appraisal
If you thought the only way to get a free home appraisal was on the internet, you’d be wrong! Somewhere between AVMs and a licensed appraiser, a top local real estate agent is going to be able to help you find out how much your house would sell for through what’s called a comparative market analysis . A CMA is a free report prepared personally by one of our agents that compares your home to similar properties in your neighborhood that are currently for sale or have recently been sold. It is determined by a professional or licensed appraiser through property inspection and comparable properties. Home appraisals are mostly used by mortgage lenders who want to know the value of your home. When you’re buying a home with a loan, you’ll need to include a financing contingency as part of your purchase offer.
The lender will likely reduce the loan amount as the property appraises for less than the sales price. Whether or not a buyer or seller can walk away at this point has to do with if there was a contingency in the contract. A home appraiser is tasked with determining the current fair market value of a property. When you have put your house on the market and accepted an offer, the lender providing financing for the buyer wants to ensure that your home is worth as much money as the buyer is borrowing. See our current mortgage rates, low down payment options, and jumbo mortgage loans.
Interest rates
You’ve refreshed your home, made essential repairs, and scheduled an appointment with your appraiser. Now it’s time to gather key documents that will help the appraiser come up with an accurate assessment of your property’s value. Be sure to have documentation of all home improvements made to the property over the past years on hand, including remodels, upgrades, and new additions. If you’re getting an appraisal with the goal of selling your home down the line, you may want to think about upgrades that will add substantial appraised value to your property. An example Grichine suggests to sellers in warmer climates is air conditioning. Exterior spaces such as garages, decks, and patios are also included in most appraisals.
Instead, focus on some of these distinct tasks that are known to carry weight with appraisers and typically have a positive ROI. Improve your curb appeal and fix broken items around the house before the appraiser’s visit, and be sure to have a list of upgrades at the ready. Maybe you inherited a property with your siblings and are arranging for a sale or buyout.
Whether you’re buying or selling, a home value estimate gives you insight into what you could gain financially and helps you form a strategy for moving forward. An After Repair Value calculator is one calculation tool that can help you evaluate comparable properties in your area. You only need to fill in information such as the address, and you can get an estimate of the appraised value. Even though the lender orders the appraisal, it’s the buyer’s responsibility to pay for it. Typically, you can pay for the appraisal at closing, but you may also have the option to pay at time of service.
The same goes for a high-end kitchen remodel or converting a garage into a living space. Full BioCierra Murry is an expert in banking, credit cards, investing, loans, mortgages, and real estate. Get free, objective, performance-based recommendations for top real estate agents in your area.
Matt is a Sacramento Valley native and current Portland, Oregon resident who is always happy to be writing. He holds a degree in English Literature and Technocultural Studies from the University of California, Davis, and is a recent inaugurate to the exciting world of real estate. Check your buying power by getting pre-qualified for a mortgage with us at Zillow Home Loans. Herrera has noticed that with the way the markets have been moving recently, appraisals have been landing noticeably closer to market value than they were just a year or two ago.
Homeowners are welcome to be home for the appraisal and make sure the appraiser has access to what they need. It can be helpful to have someone there to answer questions or fill in information gaps, though you don’t need to follow the appraiser around the house. You will want to follow up by doing your own check on the appraiser’s license and credentials, which you can do through your state’s licensing agency. Most state agencies will provide verification in writing that an appraiser is currently in good standing, which also may disclose any disciplinary actions that have been taken against them. Check out the Appraisal Institute, a global organization for home appraisers that promotes high professional standards.
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