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Synergy Home Mortgage Corner
DECEMBER 2020 MARKET NEWSLETTER EASTERN PLUMAS & SIERRA COUNTIES Beckwourth, Chilcoot, Clio, Graeagle-Blairsden, Loyalton, Portola & Golf Course Communities of Whitehawk, Grizzly & Gold Mtn.
Senior Loan Officer STEPHANIE HANNA
p (775) 762-9114
Stephanie.Hanna@Synergyhm.com stephaniehannaloans.com
1100 Caughlin Crossing Reno, NV 89519
NMLS #188917
© 2020 Synergy Home Mortgage, LLC. All Rights Reserved. This communication does not constitute a commitment to lend or the guarantee of a specified interest rate. All loan programs and availability of cash proceeds are subject to credit, underwriting and property approval. Programs, rates, terms and conditions are subject to change without notice. Other restrictions apply. 1100 Caughlin Crossing, Suite 1A, Reno, NV 89519. Corp NMLS# 1593061 (www.nmlsconsumeraccess.org).
DECEMBER 2020 MARKET NEWSLETTER EASTERN PLUMAS & SIERRA COUNTIES Beckwourth, Chilcoot, Clio, Graeagle-Blairsden, Loyalton, Portola & Golf Course Communities of Whitehawk, Grizzly & Gold Mtn.
If you’re selling or refinancing a home, a home appraisal is just part of the deal. And it’s one part that you can very easily influence. A little effort before an appraiser arrives at your home will go a long way to increase your home value for appraisal. And, believe us, it’s very difficult to influence your home value after the fact. There are some really simple things you should do to prepare for an appraiser’s visit. Since you already did the heavy prep work prior to putting your house on the market, our tips are easy to do with limited funds and time. They’re great ideas for how to increase home value for appraisal. All you need to know before an appraiser arrives at your home is what an appraiser does, what they look for and how to prepare for their visit to increase home value for appraisal.
What a Home Appraiser Does
Knowledge is power as they say. Since it’s good to know what you’re up against when preparing your home for an appraisal, let’s start with a review of an appraiser’s job. What is it that they do?
A home appraiser’s job is black-and-white: determine the current fair market value of your property. As a seller, you want to do everything in your power to help the appraiser believe in your asking price.
Although fresh-baked cookies might work to help prospective buyers see themselves making your house their home, this clever tease is lost on appraisers. However, there are still things you should —and must do —to make sure your home is appraised effectively. Put yourself in the appraiser’s shoes. See your property the way they will — through a very critical eye. Use your understanding of the appraisal to prepare your home in the right way.
How to Find a Qualified Home Appraiser
If you have your heart set on hiring your brother’s best friend’s wife (who is a member of the Appraisal Foundation) because you know she will give you a good price, think again. The buyer’s lender will hire the appraiser. They want to protect their investment and get what they are paying for. That doesn’t mean you’re at their mercy. The government’s on it. Regulations put in place by the Federal Housing Administration back during the financial crisis mandate a fair appraisal by a neutral party. Most lenders use an appraisal management company that draws from a list of qualified appraisers. Plus, no matter who is hired to do the appraisal, they must be certified in the state you’re in and, in most states, conform to the Uniform Standards of Professional Appraisal Practice.
What the Home Appraiser Looks For
Just imagine your home after you strip out your personal items —THAT is what the appraiser cares about. So, even though your custom-made living room furniture would make any interior designer swoon, it will not impress the appraiser at all. Custom-made furniture, no matter how lovely, isn’t part of your home’s value for appraisal. The quality and condition of the “bones” of your home will be assessed and recorded by the appraiser. Ultimately, this info is combined with comps to determine the market price of your property. Here’s what a good home appraiser will focus on in the one to two hours they are at your home:
Exterior
• Appraisers Measure and Verify the Lot Size They walk the property to visually confirm its condition and to record the layout of the property. How to Increase Your Home Value for Appraisal? Just as you would when showing your home or preparing it for listing pictures, make sure that your home’s street appeal is impeccable. If there is a dead branch on your tree, cut it out. A shaky fence post? Secure it. These are minor updates that won’t cost you much, and you shouldn’t give the appraiser any opportunity to write up a work order. • Appraisers Assess the Condition of the Exterior The appraiser will inspect the quality of siding, foundation, exterior paint, roof and outdoor amenities such as landscaping, sprinkler systems or swimming pools. How to Increase Your Home Value for Appraisal? Depending on how much time has lapsed since your home first went on the market, its exterior might benefit from a power washing, fresh mulch and paint touch-ups. Be sure to inspect the roof, so you can fix any missing shingles prior to the appraiser pointing it out to you. Dickson Portola Team
289 Commercial Street | Portola, CA 96122 | 530.832.1700
DECEMBER 2020 MARKET NEWSLETTER EASTERN PLUMAS & SIERRA COUNTIES Beckwourth, Chilcoot, Clio, Graeagle-Blairsden, Loyalton, Portola & Golf Course Communities of Whitehawk, Grizzly & Gold Mtn.
Interior Home sellers or their agents can be on site during the • Appraisers Conduct a Room-by-Room appraisal, but their role is to be super helpful and Assessment accommodating. Don’t follow the appraiser from room The appraiser looks at the material, quality and to room, just be available with information and to condition of all fixtures, appliances, flooring, answer questions as they come up. plumbing and whatever will be left behind when you Here’s a List of 7 Documents You Should move out including: Plumbing fixtures (toilets, Have Ready for the Appraiser showers/tubs, faucets), Interior paint quality and a list 1. Complete offer: If the finance company doesn’t of other items. send over the complete offer, it could cause Flooring Appliances Cabinetry Countertops your appraisal to come in under where you need it to be. When you have a hard copy of the entire offer on Windows/doors Furnace Electrical Basement Finish site, you can resolve any discrepancies before the appraisal is done.Air conditioning unit Lighting fixtures Fireplaces Security System 2. Data sheet: Provide the appraiser with floor plans, specifications, surveys, deeds and features of the
How to Increase Your Home Value for property so that they have confirmation of what they Appraisal see and don’t miss anything. Now is not the time to have a leaky faucet or running 3. Tax valuation from the municipal record: Another toilet. These are easy fixes and should be taken care data point for comparison is the tax valuation of the of before an appraiser arrives. Arm yourself with a property. paintbrush and be sure to touch-up your paint from 4. List of all the upgrades done to the home with the normal wear and tear of living. dates and cost: To ensure the appraiser doesn’t miss What You Should Do to Prepare for the Home any upgrades you have done to your home, provide a Appraisal? Hello, deep cleaning! list, completion date and cost for every upgrade you Technically, the cleanliness of your home shouldn’t have done. impact the appraiser’s value of it. But, the appraiser is 5. Listing history: The listing history includes each human, so anything you can do to make the sale of the property, when it happened and how appraiser’s time at your home as pleasant as possible much it was for. helps increase home value during the home appraisal. 6. Comps: The appraiser will pull their own comps — No matter who they are, pleasant conditions improve the value of houses that recently sold in your performance, and you certainly want the best neighborhood —but it’s always a good idea to have performance out of your appraiser when they are at your own. Also, be prepared to explain large your home. Be helpful and accommodating. Treat the variations in prices. appraiser visit with the same principles and prep as 7. Bad comps (to point out ones not to use and you would a potential buyer’s visit. It starts from the why): If an appraiser pulls a comp that might skew moment they contact you to schedule the your value, but you know it’s a bad comp, you must appointment. You want to avoid putting any negative be prepared to explain it. thoughts in people’s minds about your home — These Tips for How to Increase Home Value whether they are the buyer’s agent, the buyer or the for Appraisal are More Than Worth the Prep appraiser. By the time you’re preparing for the appraiser’s visit, Why You Need Your Realtor Present at the you really are in the final stretch of your home selling Home Appraisal experience. A top local Realtor who is familiar with Example: It turns out the lender hadn’t sent over every your market can help you focus your efforts to page of the offer, so a $10,000 counter offer was increase home value for appraisal. There’s no doubt missing. Had a Realtor been on site during that that you can positively influence and even increase appraisal, the error would have been uncovered then; the home value for appraisal quite easily and with however, once the appraisal is complete, it’s nearly very little time or expense. And when the appraisal impossible to change it. comes in at or above your asking price, you’ll be glad Even something as simple as the Realtor getting to the you spent the effort. house before the appraiser does to open the door is a way to start off on the right foot. Most clients do the heavy lifting to prep their homes to be “show ready” before they put it on the market. They follow the advice of experts to declutter and clean to make sure the home looks the best it can from the buyer’s perspective. Dickson Portola Team
289 Commercial Street | Portola, CA 96122 | 530.832.1700
