Four Things You Need To Know About Getting A Fair Appraisal

Getting a fair home appraisal is one of the most important aspects of selling. If your property appraises for less the purchase price, the buyer may have to scramble to put together a larger down payment or may even reconsider the purchase altogether. To ensure that you get a fair appraisal—whether you’re selling or refinancing—here are four things you need to know:

1. Know recent sales information in your neighborhood. Known as “comps,” recent sales prices in your area is a key factor in helping your appraiser come up with a starting dollar figure. However, the appraiser will not be aware of any unusual circumstances in terms of these comps. For example, some recent sales may have been the result of a divorce or job relocation, which may have affected the selling price. Ask your real estate agent to do a little research into recent sales and provide this information to the appraiser.

2. Your home’s appearance does matter. Although an appraisal isn’t based upon a home’s appearance, it does nevertheless have an influence on the final number. If your home is clean, bright and inviting—and has good “curb appeal”—you’re more likely to have a better valuation. You should plan for your appraisal just as you would for an open house. Before the date of your appraisal, clean your home from top to bottom, remove all clutter and make any other needed cosmetic improvements.

3. The appraiser may not be aware of the features of your home. Don’t assume that the appraiser knows all of the features of your home and don’t be afraid to point them out during the appraisal. Key features may include: any improvements, renovations or upgrades, new landscaping, any custom materials such as granite countertops or high-end woodwork, easy access to public transportation or shopping, and the quality of the schools in the area. You may even want to type up a list of these features and give it to the appraiser.

4. Don’t be afraid to contest the appraisal. Upon completion, make sure you request a final copy of the appraisal and read through it thoroughly. If you find any errors, omissions or inaccuracies or think the figure is too low, don’t be afraid to call the appraisal company and ask for an explanation (in a non-confrontational manner, of course). Also, it’s a good idea to touch base with your lender and let them know about any concerns, but keep in mind that under appraisal guidelines your lender cannot get directly involved.

In the end, your home appraisal can make or break a sale, so make sure you’re as prepared as you can possibly be. ∆