Will My House Appraise for Its Selling Price? 10 Tips to Avoid a Low Valuation [Infographic]

During the home selling process, your home will be appraised to assure the buyer’s lender that the buyer is not over-borrowing.  During an appraisal, the appraiser will collect information and data to determine the property’s value.  While low appraisals on average make up only 8% of appraisals, you should make an effort to ensure your home appraises at a high price.

Here are 10 tips to avoid a low home appraisal.

Show Off Features and Recent Improvements You’ve Made to the Property

You’ve spent money and time to update your home, but if left to simply view the house without input the appraiser may miss updates you’ve made.  Compile a list of recent improvements, especially for vital systems such as HVAC, electrical, or insulation.

Provide Maintenance Records

Appraisers will lower home value if there are obvious signs of neglect to the property.  Let the appraiser know that you are on top of maintenance tasks by providing before-and-after photos, receipts, and renovation paperwork.

Get a Comparative Market Analysis

A comparative market analysis is when a real estate agent compiles a list of sales of homes similar in age, size, and style within a one-mile radius of your home.  This will give you an idea of the averages in your area and what you can expect your home to price at.

Get a Pre-listing Appraisal

Before you put your home on the market, get an appraisal done so that you have a value range using current data.

Ensure the Appraiser is Highly Qualified

Typically, the lender who is providing payment to the buyer for your home will request an independent appraisal through Appraisal Management Companies (AMC) which selects the appraiser.

While most appraisers are qualified, do your research and make sure they are recognized by a professional appraiser organization and are licensed or certified by the state.

Provide a List of Comps

A list of useful information for the appraiser including a list of recent comps in your neighborhood will go a long way to inform the appraiser and keep your appraisal price high.

Give the Appraiser Your Pre-listing Appraisal

Sharing your documentation will help the appraiser with research and make their job much easier.

Also Read:

• 5 Things You Should Do to Improve Your Home Appraisal Value
• What Hurts a Home Appraisal? Here are the Top 18 Things to Consider
• What Is a Home Appraisal and Why Is It Important?
• 10 Tips for a Higher Home Appraisal

Keep Your Home Clean

Keep your home decluttered and cleaned to show that it is well cared for and to make the appraisal easier by allowing access to every corner of the home and the exterior.

Understand Loan Requirements and Their Impact on an Appraisal

Some loans, such as FHA and VA loans have stricter appraisal requirements. Be aware of what these loans require and what the appraiser for a buyer using one of these loans will be searching for by doing your research.

Know How to Challenge a Low Appraisal

The lender that has required the appraisal is not obligated to provide the seller with a copy of the appraisal.  However, the seller’s agent can request a copy of the appraisal from the buyer’s agent.  Check for inaccuracies, missed features, and incorrect information.  If you find these, request a reconsideration of value and appeal to the lender.

[Infographic] Will My House Appraise for Its Selling Price? 10 Tips to Avoid a Low Valuation

By HomeLight Homes