An appraisal is a great way to determine your home’s true value in current market conditions.
Whether you are refinancing your mortgage or considering buying or selling a home, an appraisal can play a crucial part in the process. At SouthState, we want your homeownership to be a financial success, so we’ve asked our mortgage bankers to share insights on the importance of a home appraisal, as well as tips and tricks to maximize your home’s appraisal value.
What is a home appraisal?
An appraisal is an impartial, professional evaluation of a home and is commonly used during mortgage transactions including purchasing, selling, and refinancing. An appraisal may also be requested when seeking a home equity line of credit (HELOC). A qualified professional will visually inspect a home, consider current local market trends, examine attributes such as floor plan, square footage, etc. and produce a report demonstrating how they concluded on the value of the home.
Why is a home appraisal important?
Home appraisals are a great way to determine the true value of a home. From a seller’s perspective, an appraisal is important to make sure you are listing their home for a reasonable price for their market. From the standpoint of a buyer, they want to ensure they’re not over-paying for a home worth significantly less than the asking price.
Tips to Maximize Your Home’s Appraisal Value
Improve the home’s curb appeal
Curb appeal might slip your mind if you enter through the garage door every day, but first impressions matter to both potential buyers and appraisers. You can easily boost the exterior appearance of the home by mowing the lawn, clearing any debris, adding some flower boxes, and staging the area surrounding the front door.
Make small cosmetic upgrades.
When updating your home with an appraisal in mind, small improvements can make a big difference in the value of your home. Projects like installing wood floors, freshening up the interior with new paint, and updating bathroom fixtures in the home are all small upgrades that could give you a nice return on your investment.
Small upgrades are a savvy way to make maximum impact on a small budget. You don’t have to completely remodel a kitchen or bathroom to see a big price adjustment. Focus on refreshing your space and making it look sleek, updated, and functional rather than luxurious.
Document all of the upgrades you’ve made.
If you make any updates to your home, it’s important to save the receipts and permits, take before and after pictures, and have that information ready to hand to the appraiser. Updates like a new roof or a new heating and air conditioning system aren’t necessarily aesthetic improvements, but they certainly increase your appraisal value.
Staying organized is an easy way to prove to the appraiser how much you’ve spent on upgrading your home, as well as any improvements you’ve made.
Deep clean the home.
During the appraisal process, you want to ensure your home is shown in its best light. To go the extra mile for your appraisal, you could consider hiring a professional cleaning crew to ensure every nook and cranny is spotless. If there is carpet in the home, shampooing to remove stains and freshen up the space may be beneficial.
Fix small imperfections.
Remember that honey-do list you’ve been putting off for months? Now is the time to take care of the dripping faucet, gutter maintenance, and pressure-washing.
Reading this list may sound a little daunting, but it’s better to proactively fix these issues than to receive the report from the appraiser with negative marks that many lower your appraisal value. No matter where you are in the mortgage process, your local SouthState mortgage bankers are here for you.
