Home appraisals determine whether you can get your house refinanced or whether a new buyer can afford the house they are eyeing on in the real estate market. Unfortunately, appraisals can often come in lower than what you might be expecting. Here are some tips for improving your home appraisal:
Home appraisals are based on a number of factors, which the appraiser takes into account in every situation. However, there are some instances in which you can improve your chances of getting an appraisal, which is close to the amount you are hoping to get.
Realtor.com listed nine of the most common reasons appraisals come in low. According to the publication, sometimes the appraiser does not dig deep into the neighborhood, which results in lower appraisals.
CNBC offered several tips on how you can avoid this problem. First off, you need to know from your lender whether the appraiser is someone who is close to your neighborhood. If the appraiser lives within a 10-mile radius of your property, then you can be more confident that he or she knows your neighborhood, and therefore, can give a better estimate of your property.
The publication also stated that you can also provide the appraiser with at least three comparable properties to help give him or her a better look at the right appraisal to give your home. The aforementioned publication stated that not doing so can sometimes leave the appraiser searching for comps from a nearby area, which can sometimes be less desirable than the ones in your area.
Aside from this, households should be aware that a basement does not really do much when it comes to adding value to your home.
"Improvements and additions made below grade, such as a finished basement, do not add to the overall square footage of your house," said the president of Total Mortgage Services in NY, John Walsh.
It may also help to do a bit of cleaning before the appraiser visits your home. Homeowners are also advised to give the appraisers space, as keeping a close watch can sometimes be taken as a hint that they are hiding something from the appraiser.
