Home appraisal is a crucial step in the home selling process. During preparation, the homeowner should understand what an appraiser is looking for and which features may affect their professional opinion when determining the market value of a home.
A common inaccuracy is that an appraiser’s sole concern is the general cleanliness of the home, such as overall tidiness. This can be a factor, but appraisers are focused on safety and the overall value of the home. Here are five things that may affect your home’s value during an appraisal:
1. Permits and relevant documents. Provide the appraiser with all documents. For example, if there are any living space additions or garage conversions, there should be permits on file for the projects. One of an appraiser’s biggest criteria is establishing the square footage and accurate measurements of a house. Also important, pool permits, ensuring the pool itself is filled with water when the appraiser sees it in order for the appraiser to sign off.
2. Solar panels. If a property has purchased solar panels, not leased, it is key to have the appropriate ownership paperwork readily available. Any loan documents or certificates of ownership are needed. If the solar panels are leased, they won’t add any value.
3. Supporting the appraiser. The appraiser is there to do a job. Please always be friendly, but let them work. Never hover or ask them too many questions.
4. Common easy-to-miss items. Here in Las Vegas, some details can be overlooked by homeowners that are important to the type of financing the buyer is obtaining. Specifically, water heaters that don’t have earthquake straps on them, trim or paint on the outside of a house that is peeling, and missing flooring or smoke detectors can be an item the appraiser is looking for.
5. Upgrades. If upgrades have been made to a property, provide an appraiser with a list of upgrades, commonly referred to as a “scope of work document.” Having an itemized list of all upgrades with an approximate cost can help an appraiser quantify anything that has been done and be taken into consideration in determining value. In certain situations, if a premium was paid for a specific view, an appraiser can even take that into consideration to adjust the lot value.
When it comes to getting the most out of the appraisal process, preparation is key. It’s also important to understand that appraisers are focused on the condition, function, and features of the home to ensure the property is appraised at full market value. To ensure you achieve your desired results, it’s always best to communicate with a real estate professional before an appraisal.
The Smith King Team will be able to guide you through this process.
Keep in mind that whether you are interested in buying a home or selling a home, a Realtor should represent you—this person is working for your benefit and will help you navigate through the buying or selling process. We have celebrated selling both new and resale homes for over thirty years.
We are here to answer any questions you might have—just email Jennifer@smithteamlasvegas.com
Thank you, and have a wonderful day.