The Dos and Don'ts of Home Appraisal

Linda As a retired appraiser here are a few tips that most agents should know. Remember that the appraiser is human too and first impressions upon arrival will often set the tone. Make sure pets are locked up, there's no screaming kids, yard is neat and tidy, sinks clean, etc. If an appraiser sees a lot of deferred maintenance, they are apt to take a much closer look at everything in the property. Remember they are NOT home inspectors. Offer the comps, but don't go into a dissertation on each one. The appraiser is most likely very familiar with the neighborhood and usually has done far more appraisals in the area that the agent has had listings. I would not recommend following the appraiser throughout the property. All appraisers have their method of noting what they see. Let them measure, take notes and then offer a written list of recent upgrades and improvements. Dates are helpful also. If the appraisal comes back lower than expected, don't be afraid to plead your case with back up data. Make sure comps are recent, not just foreclosures or short sales, and try to stay within a one mile radius of the neighborhood if possible. If you have a property on a 1/2 acre lot, don't give the appraiser comps of homes that are on cookie cutter lots and are probably tract homes versus custom. You would be surprised at home many agents truly do not know how to price properties and how often they are comparing homes that are truly not comparables.

Rikki Snyder Thanks for featuring my picture! Great article.

mbrlewis In New Jersey we are seeing more and more representatives of national appraisal companies coming from other areas. Recently I've had them from Long Island and South Jersey, which are very different markets. The buyers agent should take responsibility for providing the appraiser access to the property and comparable sales, however, as a sellers agent I am happy to assist them as well. It is in the best interest of the seller to have an accurate appraisal as well. Barbara Lewis, Prudential New Jersey Properties

gillianne Some good pointers here. For the kitchen, as a many-times homeowner/buyer, I have to note that I do NOT want granite counters, stainless steel appliances, or any of those extras. I want a good work layout or potential for that without a total gut job--good bones. I (and a number of people I know) aren't fans of stainless, prefer honed counter finishes, and never embraced excess in functional areas. When I put my house on the market this yr, I'll include an appliance allowance in the pricing rather than invest in appliances a buyer (like me) might not want. I do recognize, however, that you're talking about the appraiser's checklist, not the potential homebuyer's preferences, and there are useful tips to consider.

Annette Jordan You said don't do staging, but everything you have suggested in this article is all part of the staging process. Staging your home does make a difference in the appraisal. The appraisers first impression when he walks in the home is certainly important but not necessarily dependent on the final value. When the appraiser comes to your home, every detail is vital and should not be overlooked. Better safe than sorry if your are trying sell or even get a refinance.

CAROLE MEYER The exterior of the third photo is stunning.

marmarmish Do you know where photo #5 of the street, was taken? Looks like such a quaint neighborhood!

jlencioni I am renovating my small bath with a similar claw foot tub and looking for the shower set-up exactly as in the picture! Is there a way to find out the brand name of this faucet and shower combination? Joan

pblove Thank you for this article! Came at the perfect time as we are preparing for our condo to be appraised this week!

jaxrevitalized I agree with Annette. Staging may not be necessary to increase the appraisal since they see past furnishings, paint color, etc. anyway but if you want your home to sell quickly you better stage it. This is unless of course all the buyers in your neighborhood have impeccable taste and like fixer uppers.

clintmoyesrs Just had an apprasial for my refi, they compared my home to short sales and foreclosures in a different zip code (but only about 4-6 miles away), that are in kind of a 'run down' neighborhood that backs up to section 8 apartment buildings. They said they were allowed to do it because there were no comparable homes in my area that sold recently. How do you deal with that?

mhayes622 Your tip on making sure there are no visible signs of water in the basement...how about if there are problems such as leaks, moisture and/or mildew they get corrected not covered up. As a buyer I would definitely come back to the seller on that issue!

psykora updating a bathroom and I was planning on painting the wood stain oak cabinet black---is that considered an updated color? I also have the very large mirror that covers the whole wall above the sink---I still really like it--but does that date the bathroom? I am changing out faucets,lights , floors and shower door i have off white/cream toilet and sinks

watchedpot #5 is the Selby house in South Main, Colorado

Lanie Brown As the listing agent in a contract it is very important to me in representing my Seller that the property appraise at or above sales price. Otherwise, the Buyer's lender won't support the agreed upon sales price and Buyer & Seller have to renegotiate to make the deal work. It's my practice in Texas real estate to "interview" (chit chat, but get the info I need) the appraiser when s/he calls to schedule the appraisal to gain a comfort level with his/her knowledge of the neighborhood. I ask if I may leave a packet of information to support the pricing of the subject property, and appraisers have always been gracious to take my information to consider. The lender's appraisal is supposed to be independent, so I do not recommend a homeowner follow the appraiser around. As santu said, Let the expert do his job. If the property is prepared for sale and the contract is fair, making appraisal should be a reasonable challenge in the closing process.
Lanie Brown
REALTOR® Associate, CNE, GRI
Martha Turner Properties

Kimberly Dale Santu,
Appraisers are not Home Inspectors...and I would say most agents do not know how to price the properties that most just make comparison pricing just like you mentioned. I really appreciate the honesty and clear direction of your article, thank you.

PaintColorHelp.com Dallas Some good advice here, but I personally think that cleaning up is important. And some attention to arrangement/decor, if not professional staging. The more sloppy things an inspector or buyer sees when they walk in, the more they will wonder what else has been neglected. When the surface looks clean and tidy, people are less likely to dig for problems - IMO.

phyllis I liked the helpful tips, except I disagree with one major point - "Do Not stage." While it may not be necessary to stage for an appraisal, a house should be staged prior to putting it on the market. As a professional stager, I can tell you from experience that houses that are staged sell quicker and for more money than houses that are not. You only have one chance to make a good first impression. Most potential buyers, over 80%, look for homes on the internet before deciding if it's even worth visiting in person. A staged home shows better in internet photographs, appears well cared for and shows off its best features. A good stager goes beyond recommending a thorough cleaning and de-cluttering to include any one of the above mentioned "do's" - painting, new lighting fixtures, etc. Staging is a good investment in getting a house sold and usually cheaper than your first price reduction.

bklipping @clintmoyesrs - as the buyer or refinancer (person paying for the appraisal) you can appeal the first ruling. Sellers are SOL. This appeal goes back to the original appraiser but it’s all you’ve got. I was able to bring my appraisal up over 20% through the appeal but it was a lot of work to put the argument together. Talk to your lender.

If I were getting a new appraisal the first thing I would do different is give the appraiser comp sales. I assumed she wasn’t a complete idiot and the appraisal was just a technicality – I was wrong.

Beth Wish more sellers would hire a home inspector before they list their home, so they can know what problems will show up and stop someone from buying. Then get an appraiser in. Got so tired of putting in a bid, then having a home inspection show wiring,plumbing, roof, foundation problems.