Purpose of an Appraisal

• • Value Assessment: An appraisal determines the fair market value of the property to ensure it aligns with the loan amount.
  • Risk Mitigation: Lenders use the appraisal to assess the risk of the loan and protect their investment.

 

Preparing for an Appraisal

• • Clean and Declutter: Make sure your home is clean and free of clutter to make a good impression.
  • Make Minor Repairs: Fix any minor issues, such as leaky faucets, cracked windows, or peeling paint.
  • Enhance Curb Appeal: Maintain the exterior of your home by mowing the lawn, trimming bushes, and ensuring the driveway is clear.

 

Appraisal Factors

• • Property Condition: The appraiser will assess the overall condition of the home, including the structure, systems, and any upgrades.
  • Location: The neighborhood, proximity to amenities, and school district can impact the home’s value.
  • Comparable Sales: Recent sales of similar homes in the area (comps) are used to determine the property’s market value.

 

After the Appraisal

• • Review the Report: Once the appraisal is complete, review the report for accuracy and ensure it reflects the property’s condition and market value.
  • Low Appraisal: If the appraisal comes in lower than expected, you can negotiate with the seller to lower the price, pay the difference out of pocket, or challenge the appraisal with additional comps.