Home appraisal is one of the first steps in the home loan closing process. It is generally a confirmation (or refutation) of a home’s worth based on certain criteria. Knowing what to expect during an appraisal can help you put your home in the best light when it comes time to put a final price tag on it. 

What Does an Appraiser Do?

In real estate, an appraiser is a licensed professional who is qualified to discern a home’s value via a thorough inspection. Among other things, he or she will take the following into account:

• Home age

• Home size

• Home condition

• Home location

• The sale price of comparable homes in the area

• Any recent updates or upgrades

• Any major structural issues
  
  

The appraiser will also take photographs and may even make sketches of certain aspects of your home. All of this information will be included in a formal report. 

What is a Home Appraisal Used For?

The final appraisal amount will be used by a buyer’s lender to determine the final loan amount. If the appraisal is lower than the asking price, there are generally two options: 

1. The buyer makes up the difference out of pocket

2. The seller lowers the asking price
   
   

If you feel strongly that the appraiser was mistaken or otherwise unfair, you have the option of getting a second opinion. Just keep in mind that it is the buyer who typically pays for the appraisal and it will add up to two weeks to the closing process. 

Home Appraisal vs Home Inspection

While a home appraisal does involve a thorough evaluation of the home, it is not the same thing as the formal inspection. The goal of an appraisal is to assign a monetary value to the home, while an inspection is used to thoroughly determine the condition of the home. 

For this reason, home inspections are often conducted prior to the appraisal. This way, any major issues negatively affecting the home’s value can be addressed before the appraiser walks through. 

How Long Does a Home Appraisal Take?

The actual onsite inspection will take only a few hours. The report itself will take longer, even a week or two in some cases. The time for the report to be completed will ultimately depend on the size complexity of the home being appraised.  

Can I Boost My Home’s Appraisal Value?

You may be wondering if there are any last-minute steps you can take to help add a little extra value to your home’s final appraisal. 

While you are unlikely to address major issues before the appraiser arrives, there are a few things you can do to add some value to the home. Many appraisers implement a “rule of $500.” This is to say that each appreciation or depreciation in value occurs in increments of $500. This means that, by addressing certain issues, you can add hundreds of dollars in value (even if it is nowhere near that much to fix it). The following are some examples of projects worth completing before the appraisal:

Safety:

• Make sure all lights are functional and change out spent light bulbs

• Make sure smoke alarms work and have fresh batteries

• Secure handrails inside and outside

• Ensure garage door and outlets work

• Determine the age of your HVAC system and be sure it is in good working order 

• Determine the age of your roof. It should last at least another three years before needing to be replaced. 

Cosmetic:

• Repair chips and paint over stains

• Mow the lawn and trim hedges

• Sweep away debris and throw away any trash

• Clean the front door and windows

• Paint over walls in dated or non-muted colors

• Upgrade appliances to stainless steel
   

Be sure to document any upgrades you make and have this documentation ready for the appraiser. It can also be useful to have previous appraisals handy and your own documentation of the home’s square footage, age of HVAC system, age of the roof, and anything else that might make the appraiser’s job a little easier. 

Need to Sell Your House?

Jennifer Gaines is a licensed Colorado RealtorⓇ with years of experience buying and selling homes. She has a full team of professionals dedicated to presenting your home at its best and selling it for top dollar. Contact Jenn with the Gaines Advantage to get started today. 

Denver CO Real Estate Jennifer Gaines The REALTOR® that WORKS for you! #thegainesadvantage Specializing in matching people to homes and professional home new build and resale services in Aurora, Castle Rock, Centennial, Parker, Elizabeth, Franktown and surrounding areas. While helping you find the home of your dreams or sell your home for top dollar, your experience will be beyond phenomenal. Get the Gaines Advantage today and call or text me: Jennifer Gaines 303-906-8218 TEXT soldbyjenn TO 85377 to receive my mobile business card.   JenniferGainesReviews