A low home appraisal sure feels like bad news. However, sometimes, it’s bad news that can be avoided, or even turned around for the better. If you’re worried your appraisal isn’t going to deliver what you want, or if you’ve already received and appraisal that you feel is egregiously unfair, you aren’t out of options. There are things you can do to get that value higher – even if time is the best remedy.
1. View Your Home from an Outside Perspective
If you’re able to view your home with a new set of eyes, you’ll be able to better understand what you can expect. A low appraisal may be a fair appraisal, and you may not be aware that you’re hearing what your home is truly worth. Be aware of the defects in your home, and think about the way you would perceive your home if you were a potential buyer viewing it for the first time. This will give you a starting point.
2. Fix What You Can Fix
If you have a lot of structural issues with your home, that’s always going to take a significant toll on your home’s potential value. Certain repairs and renovations can help you boost the value of your home. Some things, like replacing broken faucets or painting dingy walls, will offer you a significant return on your investments. If you need a major repair, such as a roof replacement, it’s worth it to invest. If you don’t have the funds on hand, you may have to take a loss in your home value.
3. Be Present for Every Step
You need to make sure that your appraiser doesn’t miss anything. If you have storage discretely built into your home that may be overlooked, such as attic doors or closets located beneath stairs, point these features out to the appraiser. Make a list of all the things you don’t want the appraiser to miss. If you own a lot of property and all of it hasn’t been fenced in, be prepared to show the appraiser how much land you own.
4. Set the Conditions Perfectly
The appraiser needs to be able to see everything. If you have clutter lying around, this can obscure the condition of your walls and floors, or hide things like plumbing and electrical outlets. Try to get your home to a state where it’s as open and bare as possible. You might want to pack up some stuff or call a removalist for help. Cleaning up your yard can highlight its potential a little better as well, especially if you have outdoor features like sheds.
5. You Can Dispute an Appraisal
If you feel as though the information in the appraisal is inaccurate, you’re free to address those errors. You can discuss things you don’t understand with the appraiser, and request that he or she goes over the details one more time. The appraiser may also be able to give you tips that may help you boost the value of your home. This is a person who is very familiar with the way the process works, so it helps to take their input seriously.
6. Observe the Real Estate Market
Your home could be in great condition. It could be a perfect home, and still receive a low appraisal. This can be due to the factors of the surrounding area or local real estate market. There isn’t much you can do about that unless you intend to go door to door remodeling houses, or advertise all of the real estate in your community. In these cases, a low appraisal may not be your fault.
If the timing is wrong to sell your home, your value is going to be substantially lower. When you can afford to wait out the situation, you should do it. If holding on a year can help you net an extra $20,000 on the sale of your home, you may be better off doing so.
A low appraisal never leaves you without possibility. Even if you need to shell out the cash all over again for a new appraisal, you can easily get that money back in the form of a higher home value.
7 Ways You Can Beat a Low Home Appraisal by Elizabeth Lee | Realty Biz News