An appraisal is a perfect way to determine your home’s fair market value. It is the main reason homeowners get an appraisal before putting their house on the market.
As a buyer, your main objective is to ensure that the appraisal reflects your home’s value without artificial inflation. On the other hand, a seller will also want an accurate valuation when selling the house. However, if you don’t get an appraisal checklist, you may end up pricing your house so high that no buyer will want to buy it.
If you want to get an appraisal, however, you should craft a proper appraisal checklist. It ensures you’re reasonably ready when a professional comes to evaluate your house. Here’s how you can create the perfect appraisal checklist:
What Time Does an Appraisal Take Place?
Typically, the appraisal takes place when the seller accepts the buyer’s offer. However, if you decide to refinance your own home, the appraisal becomes part of loan processing and occurs before the final approval.
Moreover, the on-site part of the appraisal may take anywhere between 20 minutes to a few hours, depending on the size of your property. Furthermore, during the process, the appraiser takes photos of your house to assess your house’s value. Next, they’ll draft a report and submit it to the lender. The process may take three to five days.
How Do You Prepare for an Appraisal Checklist?
The main purpose of getting an appraisal is to find the value of your house. If you don’t adequately prepare your house, you may end up with a bad appraisal. Luckily, you can do various things to ensure a better appraisal.
First and foremost, you must understand the difference between a home inspection and an appraisal. Where the latter determines the ‘condition’ of your living area, the latter evaluates its value. Moreover, an appraiser will pinpoint your home’s market value.
Next, you need to keep in mind what an appraiser does to assess your home’s value. The appraiser may inspect your house and look for reference points to compare your house with similar properties. Furthermore, it would be best if you remember the appraiser won’t inspect your maintenance.
What Does an Appraiser Look For In Your Property?
There are specific things your appraiser will look for when evaluating your house. It entails;
1. Exterior Appraisal
The exterior appraisal includes features like the size of your property, its condition, the landscape’s quality, and additional features.
If your home is old, you’re going to need to get a new coat of paint. Moreover, features like an in-ground pool and paved driveway increase your property’s value. But if your property is in poor condition, your house’s resale value may go down.
2. Interior Appraisal
On the other hand, interior appraisal refers to evaluating the number of bedrooms, bathrooms, closets, and windows present in your house. The appraiser may even inspect your garage.
Not just this, they will also check the performance of your electrical appliances. This is to ensure the condition of each appliance. Moreover, they’ll note down any upgrade you’ve made to the property. No matter if it’s a built-in appliance or remodeling a whole room.
What Should an Appraisal Checklist Include?
Your top priority when making a home appraisal checklist should be things that need repairing. The best course of action is to fix everything before listing your house on sale. In turn, you’ll be able to resale your house for higher.
Typically, your house’s refurbishment in a way that eliminates traces of your house’s age is a good investment. They offer your house a fresher and more beautiful look, one that increases the chances of getting a positive review.
Furthermore, appraisers often value houses in $500 increments. So, if your house requires repairs over $500, you should go through with them. It’s also vital that your home obeys the following:
Here you can prioritize what needs fixing depending on your budget. But before that, you should make an appraiser checklist.
The FHA Home Appraisal Checklist
The type of loan you plan to secure can affect your checklist. If you want to apply for an FHA loan, you’ll have to follow a strict checklist. Here’s what an FHA home appraisal looks for:
The VA Home Inspection Checklist
At the same time, if you go for a VA loan, you’ll have to make sure the home conforms to the below list:
The appraiser will also request a pest inspection to ensure the home is free from termites and other critters.
What is an Appraisal Cost and Who Pay It?
Typically, the home buyer will pay for the appraisal. However, if it’s a mortgage refinance, the homeowner has to pay for it.
The cost of the appraisal mainly depends on the location and type of property. On average, you’ll have to pay anywhere between $400 and $1,000. The average price of each appraisal is as follows:
Looking for a professional appraiser to determine your home’s fair market value? Contact the experts at AmeriMac today!