You have invested time and money into renovations, enlisted with the help of a Realtor, and shown your house to potential buyers. You have accepted an offer for your home, and you are now in the contingency period. The next step is to have an appraisal done, and you probably have questions about this part of the selling process:
- How is a home appraisal different from a home inspection?
- What does the home appraiser look for in your house?
- How can you prepare for a home appraisal?
Unfortunately, just because you are one step closer to closing day, this does not mean the days of cleaning and repairs are behind you.
Before you can finalize the sale of your property, a professional appraiser must visit your home to assess its value and confirm that the property's price is accurate.
Here is what you need to understand about home appraisals and how you can set your property up for success in this next step of the selling process.
Home appraisal is different from home inspection
An appraisal assesses the value of your home using comparable market analysis, a tool used to estimate the value of a specific property by evaluating similar ones that have recently sold in the same area. An inspection reports the overall condition of your home.
Before the appraiser even arrives at your residence, they will do some preliminary work such as comparing the property's features, location, and finishes with similar, recent sales in the vicinity. Then they will complete a comprehensive review of the property's condition, both visually and by testing the functionality of major systems.
Upon completion, the inspector will report back to the buyer about parts of the home that should be repaired or replaced before purchasing the property. Most lenders require appraisals to approve financing, so this process occurs during the contingency period before the sale is finalized.
Although most buyers will request an inspection, they are not a requirement with conventional financing. While appraisals and inspections are different in many ways, they have this in common: they can both negatively impact the price of your home. Your home could appraise for a lower value than you were hoping for, or issues uncovered during an inspection could mean buyers attempt to negotiate a price reduction.
What does the home appraiser look for in your house?
Professional home appraisers are considered unbiased, third-party participants whose goal is to determine the fair market value of your property. So what are they looking for, anyway?
When the appraiser visits your home, they will examine the general condition of the property and the interior and exterior of the house. As far as the exterior, they consider your home's structure, age, and location. They check out the quality of construction and the integrity of the roof and foundation. Appraisers also look for any problems with the gutters or siding.
With the interior, the appraisal focuses mainly on the total square footage of the home and whether or not the layout is functional. Appraisers also consider the following:
- The number of bedrooms and bathrooms
- The condition of the heating, electrical, and plumbing systems
- The size of essential rooms like the kitchen, compared to the size of the other rooms in the house
- The age and quality of appliances
- Any health or safety issues like blocked fire escapes or loose handrails
You do not have to be concerned about personal, aesthetic touches like ceiling fans or hot tubs. Home appraisers are not just looking for the negatives, though. They also consider aspects that add value to a home, like a new roof or a new air conditioning system.
How can you prepare for a home appraisal?
Now that you know what appraisers are looking for, take the following steps to set your property up for success:
- Prepare relevant paperwork like tax documents and necessary permits
- Repair any minor leaks or chipped paint
- Clear out crawl spaces for easy access
- Ensure everything works, such as the garage door, air conditioner, and heater
- Secure handrails along stairs or raised decks
- Deep clean your home
Skip the stress of home appraisal, sell to Simply
Having your property appraised is just another step in a long journey toward finalizing the sale of your home and moving on. If your house is outdated or damaged, an appraisal means the price of your property could be lower than you anticipated.
If you take the traditional real estate route, having your home appraised is unavoidable since it is a lender requirement. However, when you sell to Simply, you can avoid this headache! We make all-cash, as-is offers, and we do not require bank approval, so the selling process moves quickly and is much smoother.
You do not have to deal with the hassle of preparing your home for appraisal, nor do you have to wait and cross your fingers that your property appraises for the price you want.
Not only does partnering with us allow you to close and get moving faster than selling with a traditional buyer, but it also means no cleaning, no repairs, no showings, and no surprise fees!
Are you ready to find out if we are interested in buying your property? Enter your address here and receive your instant offer. It really is that simple!