What does an Appraiser Look for in Your House?

What does an Appraiser Look for in Your House?
The appraiser looks at sq. footage, basic amenities, and then finds comparable's in your neighborhood.


Ideally they are looking for a house just like yours within a few blocks that has sold within the last month. Now the odds of that are slim unless you live in a HUD development. But in general you want to replace items in your home that are older than the typical life expectancies, windows, furnace, water heater, A/C, roof, siding, other appliances, cabinets, counter tops, plumbing fixtures, older than 15-20 years. Carpet, flooring, paint, ceiling texture older than 10 years. Landscaping should be fresh and well maintained. These should all be pointed out to the appraiser. 

The biggest things you can do is add finished Sq. footage, finish the basement, add on, add a bathroom, add a gas fireplace, add garage space 3 stalls is ideal, (increase the amenities). As a former home flipper, you want to buy the ugliest house on the neighborhood and turn it into the 2nd-4th best in the neighborhood. Not first best because the other homes bring your value down, but above average so yours will sell fast. 


As most realtors will tell you neighborhood need curb appeal. Buyers should want to look at the inside, not be turned off from the street. Additionally I would look at your market area, house prices in general are on the decline, now is the time to make improvements because contractors are looking for work and giving deals. You want to be fairly confident you live in an area where the housing market will recover. Will the job market recover? Is a long commute necessary? Gas prices are bringing buyers back to the city/inner suburbs.

Do I need an Appraisal to Sell my House?

One of the most common questions people ask is, "do I need an appraisal to sell my house?" An appraisal is a professional assessment of the home's worth. It is performed by a licensed appraiser, who takes into account the property features, the market conditions, and the data on sales of similar properties. The appraiser then uses a formula to calculate the most likely worth of the home. Home sellers generally ask "do I need an appraisal to sell my house" because they believe that the appraisal will help them to determine how much to list the home for.

The answer to the question of "do I need an appraisal to sell my house" is technically NO. It is possible to price a home and list it for sale without the home being formally appraised. In order to determine how much you should ask for the home without an appraisal, you can do some basic research yourself on the Internet to find out what similar homes have sold for. Remember, when doing your own research on the Internet, the other homes that appear comparable to yours may actually have different features or be in a different condition, so any estimates you make on your home's value from this type of research should be considered estimates and not facts.

You can also ask your real estate agent what he believes the house will sell for. Real estate agents look at many properties, and seller's agents are often responsible for listing multiple properties within a given market. As a result, agents begin to learn the value of properties and are able to discern what buyers are looking for. Your real estate agent can thus help you determine the appropriate price to list your home for, without the need for you to hire a professional appraiser.

However, although you do not need to have your home appraised to sell your house, the answer to the question of "do I need an appraisal to sell my house" can be more complicated than a simple no.

While sellers do not need to have the home appraised, buyers often do. Generally, a bank will not authorize a loan until the home is appraised by an approved appraiser of the lender's choosing. The buyer pays for this appraisal, and it may be done after an offer is already made on the home. Still, since the bank will generally not provide a mortgage to the buyer if the home is found to be worth less than expected in the appraisal, technically the answer to the question of "do I need an appraisal to sell my house" can in fact be yes- you do because the buyer may be unable to make the purchase unless the appraisal goes OK.

Home Inspections and Appraisals

Appraisals and home inspections are both carried out during the sale of a house. Though they both involve a trained professional taking stock of a house, they are performed for distinctly different reasons.

        APPRAISAL

1. • The appraisal is concerned with determining the market value of a house. Mortgage loans are often conditioned on an appraisal; lenders won't put up more than a house is worth. The appraisal can also prevent the buyer from overpaying for a house.

   Inspection

   • The home inspection is aimed at revealing the physical condition of a house. Buyers get a home inspection to reduce the chance of "surprises" after they take possession of the property.

   Appraisal Factors

   • Key factors in an appraisal are the square footage of a house, its general condition, its permanent fixtures, the number of bedrooms and bathrooms, and the value of comparable properties in the area.
     
   

    

    

    

    

    

    

    

    

   Inspection Goals

   • The home inspector isn't as interested in the value of a home, as whether it has hidden problems. An appraiser may note the presence of a gourmet kitchen; the inspector will actually test all the appliances.

   Contingencies

   • Home buyers frequently make their offers contingent on the house being appraised for the sale price, or close to it, as well as on the seller fixing any problems found in an inspection. Such contingencies allow them to back out of the deal without penalty if problems arise.