Home appraisals are a piece of the selling process where you may have to let go of the reins. Lenders often require the use of their own, FHA-approved home appraiser. That means you get zero say in who's determining the financial value of the home you've lived in, loved, and sunk your savings into.
Here are some things sellers can do—straight from the home appraisers' mouths—to navigate the process of home appraisals.
Keep in mind that home appraisers aren't magicians
The appraiser won't know what your home is worth the second he walks in the door because home appraisals aren't magic. A good understanding of the home appraisal process will go a long way toward comprehending how your home's value is determined.
First, a home appraiser will pull comparable listings (called “comps”) from the nearby area. These are homes similar in style, location, and footage sold within the past few years. Then, he or she will come by your house to determine its condition and quality, as well as any other factors that would affect the cost of the home, and use that information — along with the comps — to make an accurate assessment.
This usually takes at least a few days — and definitely more than a few hours.
Prep your space — and its occupants for the home appraisals
No, the home appraiser isn't coming by to judge the cleanliness of your homestead — but it's still good form to declutter, dust, and mop beforehand to show your home in its best light.
Home appraisals won't typically devalue your home because it's messy — but a neat, organized home might help you.
Also, make sure the occupants of your home are prepared for the appraiser's arrival, including teenagers who tend to stay holed up in their rooms.
Get your paperwork in order before home appraisals
Before any and all home appraisals, gather all the information you have about the house and send it over. Most appraisers will ask for this upfront, either directly or through the lender or broker.
Appraisers recommend having on hand a list of major improvements as well as detailed info about the age and condition of the roof, HVAC systems, and major appliances. For any DIY projects, make sure you have the original permits.
There's nothing worse than an appraiser pulling comps for a 1,200-square-foot 1920s Cape Cod–style house, only to realize on the day of appraisal that your master bedroom addition adds an additional 500 square feet.
So go the full-disclosure route.
"Hand it to them on a silver platter: Here's my neat, gorgeous house, shown in its best light and all the things that are awesome about it".
Don't put too much stock in home improvements
We're sure your brand-new kitchen is stunning — but don't be surprised if it doesn't proportionally raise your home's market value when it comes to the home appraisals.
Home appraisers stress moderation in assuming how much your shiny, brand-new kitchen will add directly to the worth of your house. If you spent $50,000, you're likely to see only a fraction of that returned in value. That goes double for a new pool, which does not bring as much value as people think.
Don't engage in listing ‘puffery’
Before listing, make sure you and your agent take a realistic look at what your home actually offers. Are you including the basement square footage in the total? Are you hoping no one will notice your roof isn't new? Preparing yourself ahead of time with a pragmatic estimate will ease the appraisal process.
And above all else, make sure not to fudge the numbers.
This is particularly rampant in areas where the assessor's information isn't accessible online. When you know potential buyers have to actually, gasp, go in person to look up the sketches, it might be a lot more tempting to pad some square footage here and there.
After all, who will notice?
Here's who: Your appraiser.