What Happens When an Appraiser Comes to Your Home: A Comprehensive Guide
When an appraiser visits your home, they are tasked with determining the property value based on a systematic process. This guide will cover the entire process, from the initial introduction to the final report, and highlight the factors that an appraiser considers during the evaluation.
Introduction and Purpose
The appraiser starts the process by introducing themselves and explaining the purpose of the appraisal. This could be for a sale, refinancing, or any other reason. Transparency in communication is crucial to ensure you understand the scope of the work and what to expect from the appraisal.
Exterior Inspection
The first task for the appraiser is to examine the exterior of the property. This includes checking the condition of the home, the size of the lot, and any external features such as pools, garages, or decks. Attention to detail here can significantly impact the final valuation.
Interior Inspection
Following the exterior inspection, the appraiser will proceed to the interior. They will evaluate various aspects of the home, including the layout, room size, condition of walls, floors, and fixtures. Any upgrades or renovations will also be noted, as these can add value to the property. The appraiser may take measurements and photographs to document their findings.
Comparative Market Analysis
To accurately value the property, the appraiser will conduct a comparative market analysis. This involves researching recent sales of comparable homes (comps) in the area. The comparison looks at homes that are similar in size, condition, and location, providing a more accurate estimate of your home's value.
Assessment of Features
The appraiser will also consider various features that can affect the property's value. These include the number of bedrooms and bathrooms, the age of the home, and any unique characteristics. For instance, a home with a modern layout and spacious rooms may be valued differently than one with outdated features.
Final Report
After completing the inspection, the appraiser compiles their findings into a comprehensive report. This report includes the estimated value of the property, details of the inspection, and the rationale behind their valuation. The report is usually provided to the lender or the party that requested the appraisal.
Additional Considerations
During the appraisal process, the appraiser may enter every closet, explore under the house, and sometimes even the attic. They are looking for signs of maintenance, cleanliness, and overall condition. Here are some factors they might consider:
Maintenance
Are things kept up to standard? Is there a lot of work required to maintain the home in a maintenance-free state? Is the yard neat and clean, or are there signs of neglect? Is there soil up against the siding, which could be an avenue for termites? Is the structure in good shape? Does any heat, air, plumbing, or electrical work efficiently?Appearance
Are the kitchen and bath areas updated, or are they a grungy 1970’s decor with chipped tiles? If your home's bathroom is in a 1930 style, is it considered "vintage" or in good shape? Do you have popcorn ceilings? If so, they may contain lead and need to be either encapsulated or removed by a licensed contractor.Cleanliness
If your home is neat and clean, the appraiser may give it extra points, as cleanliness can positively impact the overall valuation.
Neighborhood Comparison
Finally, the appraiser will consider how your home compares to others in the neighborhood. This includes the condition, age, and features of neighboring properties.
Understanding the appraiser's process and the factors they consider can help you prepare for the visit and potentially improve the final valuation of your home. By addressing any issues and making necessary improvements, you can enhance the appeal of your home and its market value.