Selling your home requires more than finding a buyer. Before you can close a deal, there are two important milestones: the home assessment and the home appraisal.
An appraisal of your home provides an estimate of the market value. A licensed professional is licensed and certified to perform the home appraisal. They will assess your home objectively and determine its value.
This number will tell you if your house is priced accurately based on its features and location. It will also be compared with comparable homes in the neighborhood that have sold.
Buyers with low appraisals may not be able to obtain enough bank loans. Buyers who are unable to pay the cash difference will lose their buyer or negotiate a lower price.
This is not a good situation. This is not a common situation. According to the REUTERS Confidence Index Survey by the National Association of Realtors, 76% of all home sales that closed in February 2018 had contract contingencies. 44% of these were related to appraisal issues.
Although you cannot control the price of your home, you can increase your price range. These are eight great places where you can start.
- Request an early appraisal: The appraisal determines the loan amount. Usually, the buyer pays for it. This usually happens in conjunction with a home inspection. If you are concerned about the house’s value, it is possible hire an appraiser. This will help you identify areas that require attention before you sell your house. An early appraisal can help you identify any potential problems that could make your home vulnerable, such as broken fixtures or structural problems. An appraisal, even if no changes are made to your home, can help you determine the price of your home.
- Quick fixes: Signs that a property is in disrepair will affect an appraiser’s appraisal. You can make simple repairs like painting the walls or fixing the toilet that is always running. This will show that you are willing to put in effort and time. It is worth spending a few hundred dollars upfront for simple repairs. Failure to do this could lead to a loss greater than the appraisal price.
- Enhance curb appeal: Your landscaping can make a big difference to the value of your home. According to research from Virginia Tech, landscaping can increase your home’s value by as much as 10%. You might not have the funds to fully overhaul your landscape, but small investments can be made in landscaping to increase curb appeal and market value. Landscape lighting and small trees can make a big difference.
- Clean up your home: You will likely be tired of cleaning your home by the time you have your home appraised. The appraisal will be completed if you are able to clean it again. Your home will be more valued if it is clean. Get out your scrub brush and start cleaning. Attention should be paid to any areas that are not normally included in your cleaning routine, such as the interiors of cabinets and corners of ceilings. To remove lingering stains, you can use a melamine sponge to scrub the walls. Exterior of your home, including gutters or windows, should be cleaned.
- Take a look at these comparable properties: How your house compares to similar properties in the area that have recently sold will determine its market value. An agent can provide data about the closing prices for similar properties in your neighborhood. This data will give you valuable insights into the value of your home. Compare similar listings to see if they have comparable exterior and interior features. Also, take a look at the general condition. You should make some improvements to a home that sells for less than what you want, but still has modern features and a better yard.
- Check that everything is working correctly. A home inspector may notice a damaged fixture and ask the buyer for repairs. An appraiser could lower the value of a home if they find a damaged fixture. To ensure that everything is working properly, you should inspect the property. Make sure to check for burnt bulbs. Check that smoke alarms work. It is in your best interest to show that everything works. Although the inspector might not be as thorough or as knowledgeable as an appraiser it is still very important.
- Get green: A few well-placed plants can make a space feel fresh and modern. While you don’t need to visit a nursery to get a home valuation done, it is worth considering ways to brighten up your space with greens and flowers. If you have plants, make sure they are spaced so that they add beauty to your home. Fresh flowers can be purchased at a shop, and placed in sunny areas. You might be able to borrow fake plants from a realtor. These plants are often used by realtors to sell homes. They won’t affect the appraise value but they will make your home appear better and more organized.
- Your home is in need of some love It is likely that you will be there when the appraiser arrives. This allows you to sell the most valuable parts of your home, including the recent improvements. Don’t be afraid to mention that the living room carpet is new and that the trees at the rear of the house bloom with beautiful flowers every spring. Give the appraiser space to look around. It can make you appear to be afraid that they will find something if you are too close to the house. But, before they leave, make sure to highlight the best features of your home.
This is a key point to remember when making home renovations and changes for your home valuation. Do not worry about things that aren’t important.
The buyer will already have made a decision based on the number of showings that they had. Any changes made at this stage will be to increase market value. You can make further improvements if the appraisal is too low or you lose your buyer.