When you’re selling, buying, or investing in a residential property, a home appraisal is a key component of a well-informed purchase. For real estate agents and individuals investing in or buying a home, it’s vital that a home appraisal is obtained for the final financing and decision processes. A home appraisal is necessary for any mortgage or loan process.
Home appraisals are completed by licensed or certified professionals who are highly trained to appraise a home objectively and fairly. A professional home appraiser must go through continued education, plenty of testing and meticulous training to become licensed or certified, and to continue practicing as a home appraiser. It is an intensely regulated industry, with severe consequences for biased reports.
Home appraisal reports consider the existing condition of a residential property, the neighborhood the property is in, and the value or sales data from similar homes in the area. A home’s value is not solely based on its aesthetics, but rather, on the permanent structures and factors attached to the home. This includes factors such as:
Although some factors that can increase the overall fair market value of a home are uncontrollable – such as the surrounding neighborhood and sales information from similar properties – there are some things that homeowners and investors can do to help increase the appraisal value.
If the exterior of your home needs a little TLC, consider investing in a professional landscaper, or simply make minor repairs to make the outside of your home more inviting. This also can be said for the interior of a home. Although an appraiser cannot decrease the value of your home because of clutter or dirt, negative aesthetics such as dirty carpets, and stained or cracked walls can. Make sure that these issues are fixed before an appraiser comes for a visit.
Honesty and up-to-date records are extremely helpful for a home appraiser. Whenever you complete a home improvement or renovation, include any inconspicuous items such as a new roof, sink, or flooring. Although these renovations do not count for an exact amount of value during an appraisal, they do positively influence the value.
From pre-purchase appraisals to pre-listing appraisals, valuation services for your residential property are a key component of a successful real estate venture.
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Chad Giffen is a Certified Residential Appraiser that has been involved in Kansas City real estate since last century. Chad’s works as a financial planner, real estate agent, investment manager, appraisal management company employee, and appraiser, provided a multifaceted understanding of the residential real estate industry. These experiences led to the understanding of a need for unbiased advice in the residential market. To fill this need Chad founded Real Home Advising, a company whose goal is to provide assistance and advice to clients in the complex residential real estate industry.