Both sellers and those planning to refinance must face a home appraisal. While many homeowners often look forward to the appraisal process because their homes usually increase in value, no one wants to be unpleasantly surprised by the appraisal results.
Unreasonable Repairs
Some repair work is guaranteed to help increase your profit, but others may waste time and money. Return on investment is not always guaranteed with any repair, but some are more likely to add to the home's value during the appraisal.
The following repairs can have the most significant effect:
- Refinish hardwood floors
- Minor repairs in the bathroom
- Minor repairs in the kitchen
- Converting the attic into an additional bedroom
- Reversing the lower level into a livable space.
- Creating and equipping utility rooms/closets.
- Landscaping
Clutter in the Home
Although appraisers do not come to evaluate the cleanliness of your home, they are also human, and a dirty home inevitably sends a certain message. A good appraiser will be guided by facts, not just their opinion of the house, but the human factor has never been canceled!
Forgetting to Look at Comps in Your Area
Market comparables or comparing homes are used to determine the value of your home. Knowing comparables in your area can be significantly helpful in the appraisal process. Firstly, it allows you to provide some information to the appraiser, but it can also give you an idea of important features that may be missing in your home but are present in other homes in the area. This information can be valuable when making decisions about repairs before the appraisal.
Updating Appliances Without Considering Eco-Friendliness
An eco-friendly home is in high demand these days. Young buyers are very interested in a more eco-conscious way of life, and eco-friendly options often save energy, leading to real savings on utilities in the long run. When updating appliances or other home elements, prefer eco-friendly options to attract even more buyers. This can be a helpful detail to point out when your home undergoes an appraisal.
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