The following article is devoted to Tips for Home Appraisal. Refinancing home mortgage involves a series of steps that must be followed before the mortgage application gets accepted or rejected. One of the crucial steps is getting the home appraised by a professional. The professional evaluates the property to be refinanced and provide their opinion on the market value of that property.
The appraiser is a third party individual who has been given license to appraise properties by the government. It is important that the appraisal is done properly as it acts as a base for the lender to grant or deny refinancing. It will also decide the amount of refinancing that a person gets.
Here are some tips that will help prepare ones home for appraisal and also improve the appraisal to get a higher value –
• Refurbish the exteriors – Make the exteriors of your house more appealing than the other houses in the neighborhood. If a person cannot afford the beautification expenses, minor things like trimming the shrubs, mowing the grass, placing blooming flower pots can make a big difference. When the appraiser drives down for appraisal he will automatically compare your house with the other houses in the neighborhood. Hence it is important to keep the exteriors clean and attractive.
• Painting – Painting the interiors of the house will give it a fresh and enhanced look. It is also advisable to go for neutral colors instead of bright colors as the choice of colors differs from person to person. Painting the exteriors may be a costly affair and hence it depends on how much the person wants to spend.
• Major Repairs – If there are any major repairs like leaky/ broken taps that need to be done or some structural damages must be corrected, it should be done before the appraisal. If these factors are ignored they increase the probability of the loan application getting rejected.
• Remove the Clutter – Remove the unnecessary things that just lie around your home. Giving the house a spacious, clutter free look is important.
• Clean the Walls and Tiles – The bathroom and the kitchen tiles should be cleaned and the grouted to fill in the broken tiles and the gaps.
• Entire Home should be Accessible and Simple – The appraiser will take a look at your entire house so keep all the areas of the house accessible and clear which gives a ‘livable’ look.
• Make a Flexible Appraisal Schedule – Do not plan any other activity immediately before or after the schedule for appraisal. Appraisers are over occupied and busy and hence there are chances of rescheduling or delaying the appraisal from the schedule. So always keep your availability.
• Maintain Documents – Keep the legal documents and other related paperwork to support your claims for renovation of the house.
• Keep an Estimate of the Appraisal Value – If some other houses in your neighborhood have got upraised recently, keep a track of the appraisal values, the size and type of those houses. This will help you estimate the appraisal value of your house and compare your expected value to appraiser’s value.
• Install Energy Models – Energy efficient kitchen appliances, thermal insulated doors and windows can add to the value of your home.
• Cosmetic Changes – Remember cosmetic changes do not change the value of home, so don’t spend a lot in cosmetic changes.
• Cost of appraisal – Get the appraisal done only when you have undoubtedly decided to go for refinancing as the appraisers also charge fees. These fees depend on the size of the house and are not refunded if the refinance application is rejected.
Keeping the house well presented for appraisal will give a positive effect on the value of the house. Always remember, present a house for appraisal the way you would present it for sale. Small changes and little efforts will go a long way in increasing the value of your house.