How does home appraisal work when selling your home? During spring and summer, the days are longer, the weather is helpful, and flowering landscapes boost curb appeal. Therefore, these seasons are the busiest time for buying and selling homes, according to Realtor.com.
But, before you list your home or make an offer to buy, you should consider having a home appraisal before you order a title opinion.
Home Inspection vs. Home Appraisal
If you are asking how does home appraisal work? An inspector looks for function. Meanwhile, an appraiser looks at the value. There is a difference between them.
You require an inspection to identify defects in a home’s structure or systems. So, an inspector does not focus on the price or value of a home. This is the job of an appraiser.
Hence, the purpose of an appraisal is to determine the market value of a home. To do so, it documents the quality and condition of a property by comparing it to similar properties in the same area. Likewise, an appraisal ensures that a home is worth the money that a buyer is willing to mortgage.
Home Appraisals Can Benefit Buyers and Sellers
Usually, the buyer’s mortgage company is the entity that solicits home appraisals in the course of a purchase. Also, they can occur during a homeowner’s refinance.
Appraisals provide the following advantages:
- Protect mortgage providers from over-lending on properties.
- Protect buyers from overpaying for their homes.
- Help sellers to set fair prices for their properties.
- Help sellers find upgrades to boost their selling power.
A Home Appraiser’s On-Site To-Do List
Here’s a sample breakdown of what an appraiser will inspect:
1. Property Grounds
The appraiser will check the property to see what the grounds have to offer. The lot size, the curb appeal, and amenities such as in-ground pools and decks are interesting for an appraiser. These elements add value to any property.
2. Interior and Exterior Structures
Walls and Foundations: The appraiser makes note of a structure’s material and current condition.
Kitchens and Baths: Are there signs of water damage? Have they received significant upgrades? These areas appeal to buyers and appraisers when they are done tastefully.
Electrical, Plumbing, HVAC: Are these systems up-to-date? Are there signs of leaks or damage such as rust or mold?
Roof, Windows, and Doors: These elements will affect your home’s value through curb appeal.
An old, drafty, single-pane window that does not open and closes properly can reduce your home’s value. Likewise, old insecure exterior entry and garage doors can have a similar effect. Remodeling.com stated in 2016 that these upgrades could bring more than 80% of return on his investment to a seller.
Besides, a roof plays a significant role in the value of a home. A roof replacement can generate more than 70 percent return on your investment.
3. Amenities and Upgrades
Amenities such as wood floors, added rooms, or siding upgrades positively affect a home’s value. You can stack up to the competition with improvements like these.
Neighborhood comparable also called “comps,” have a significant effect on your home’s value.
Besides visiting your property, an appraiser must check similar homes to yours recently sold in the area. They’ll compare your home to other neighborhood properties. At the end of the process, you will see how your home stacks up in your appraisal report.
Preparing for a Home Appraisal
Eric Stewart of Long and Foster’s The Eric Stewart Group offers some home appraisal advice to residents of Washington D.C., Maryland, and Virginia. The biggies:
Tidy up: Maintain your lawn and landscape, eliminate clutter, and keep pets out of the way.
Tackle repairs: Stewart identifies minor repairs, but you should take care of major repairs in advance.
List improvements: The appraiser should consider what has been done to maintain the home. Thus, make a list of all major repairs or upgrades you made to your home, including the cost, if possible.
Bringing value to your home
Now you know how an appraisal works. Therefore, you might be wondering if a significant issue like an aged roof will affect your home’s appraisal.
A Long Roofing roof will protect your home, improve your home’s energy efficiency, and boost its curb appeal. Moreover, our team of experts can help you find the right shingles to complement the look and feel of your home for a lifetime.
If you have questions about a home appraisal or anything else selling your Mississippi home call Mississippi Landsource today at 601-966-4657. Didn’t find what you are looking for today? Check out our sister site Louisiana Landsource and the home and land listing near the Mississippi and Louisiana border.