A home appraisal can be a confusing mess if not understood properly; therefore, it is highly advised to understand its basics to avoid confusion. People who will sell their real estate property will surely undergo an appraisal process, especially for those who are selling residential real estate properties. But you might wonder how does an appraisal work?
Getting The Home Appraisal Process Right
When it comes to a home appraisal, you must first know the meaning of it and how exactly it is done in the real estate business.
According to Discover, the home appraisal is done to check a home's worth with an unbiased estimate. Usually, the home appraisal process is requested by a lender and is done during the loaning process of the mortgage. This will help them determine if the money being lend is correct. Many factors are considered when it comes to the whole appraisal process, which is listed below:
- Recent sales information
- Current property condition
- Property location
- Impact on the surrounding neighborhood
Do note that there are trained, licensed home appraisal professionals who will handle the whole appraisal process.
Sellers Need to Know These For Appraisal
For sellers of homes and other real estate properties, listed below are the things you can do to improve your appraisal value according to Opendoor:
- Be competitive within the competition. This will help you determine the right selling price, which factors in the appraisal process.
- Keep everything fixed and in top condition. Doing so will make the appraisal value of your property much higher.
- Have a high curb appeal. Making your property presentable and beautiful both inside and outside can greatly affect the appraisal process.
- Cosmetic upgrades are a must. Having this kind of upgrade will help you attract a higher appraisal value for your property.
- Improvements should be recorded. Presenting the good improvements, you have done to the property will help you get a higher appraisal value.
- Keep everything clean. Having a clean, pristine property will positively help your chances of getting a higher appraisal value.
- Providing personal space for the appraiser. Respecting the personal space of the appraiser will surely help your appraisal value to become higher, thanks to the possible good mood of the appraiser due to your action.
Aside from those, there are other tips that you can take note of from your end that can help you net a higher appraisal value for the property you want to sell.
The Stuff You Need to Know as a Buyer
When it comes to those who are going to buy residential real estate, there are some things they must need to know that are related to home appraisal during the buying process. According to Investopedia, below are the stuff you need to know as a buyer:
- Usually, the appraisal process is done during the closing process of a deal.
- The transaction will only proceed if the appraisal value is in or above the contract price.
- If the appraisal value is below, it can derail the closing process or delay it indefinitely altogether.
ALSO READ: Denied for a Home Mortgage? Give Loan a Second Chance
