Getting Your Home Ready For Appraisal

You have found a buyer for your home and agreed on a price. The buyer has been approved for the loan. The only thing standing in the way is the appraisal.

Sales Contract

When an appraiser looks at a home, there are several factors that go into determining the homes appraised value. The contract is one of the primary indicators the appraiser uses to assign value. A home’s worth is determined by what someone else is willing to pay for it. When two parties agree on a purchase price, they are determining the homes worth.

Comparable Homes Sales

The county courthouse keeps a record of all real estate transactions within their county. The appraiser uses this information to locate comparable properties. Comparable properties are similar is both size, style, construction type have sold within the 6 months, and is located within 15 miles of the home that is being appraised. If available, an appraiser will prefer to use comparables that have closed within the last month and are located 0-3 miles of the home being appraised.

Appraisers will also look at the features of the house when determining value. Things like square footage, condition, age of the house, lot size, and craftsmanship all go into determining what makes a good comparables. Generally, an appraiser will use 3 comparable properties to help determine the appraised value.

Final Thoughts

As you prepare for the day the home is being appraised, there are a few tips you can use to help the appraiser out. Make sure the home is clean and clutter free, cut the grass, trim the trees and shrubbery, and have a copy of the sales contract readily available. Be prepared to discuss any repairs and renovations with the appraiser.