When selling a home or refinancing, a home appraisal is a crucial step. Its main purpose is to provide an objective and professional estimate of a property’s value in the market. This protects the lender as it ensures the loan amount doesn’t exceed the home’s value and the purchaser that they aren’t paying more than the house’s actual worth. You should know what to expect to ensure the procedure goes smoothly.
Schedule and Prepare
The lender hires a licensed appraiser once a purchase agreement is signed or a refinance application is submitted. You will pay the appraisal fee:
The Appraiser
They are an independent third party. The appraiser doesn’t work for you, the seller, or the real estate agents. Their job is solely to deliver an unbiased valuation.
Prepare Your Home
Basic preparation can help you. Clean the interiors. Make sure all areas, like the attic, crawl spaces, and garage, are accessible. Plus, the mechanical systems must be operational.
Gather Relevant Documents
Have an updated list mentioning the renovations and repairs. This is highly beneficial. Provide the appraiser with documents such as receipts, permits, and a list of the areas you improved. This can be a new roof, HAC replacement, and kitchen remodel.
The Physical Visit
Depending on the property’s size and complexity, it can either take half a minute or a few hours:
Examines The Exterior
They will go around the house, measuring the home’s exterior dimensions to confirm its square footage. They will examine your roof, siding, foundation, and yard’s condition.
Interior Assessment
Inside, they will note every room’s layout. The quality of construction and the condition of flooring, fixtures, and walls. Furthermore, the appraiser will confirm the number of bathrooms and bedrooms.
Takes Numerous Photographs
The appraiser takes numerous pictures of the interior and exterior. This helps them make detailed notes on any distinct features. The same goes for necessary repairs or upgrades. Plus, plumbing, electrical, and HVAC systems are also noted.
The Valuation Process
The final valuation is based on the property’s characteristics and the comparable sales:
Comparable Sales
The appraiser finds sales data for similar homes in the neighborhood that have sold within the last six months. This similarity is based on age, size, condition, and features.
Makes Adjustments
The third party makes dollar-value adjustments between your home and the comparable homes. For instance, if a comp contains an extra bathroom that your home lacks, the appraiser deducts a specific dollar amount from the comp’s sale price to show that difference. Likewise, if your home has features that the comp doesn’t have, the appraiser will add an adjustment.
Sell Your Property With The Realtors at Bergen Realty Team
If you’re looking to sell your property in the near future, you need an experienced team of realtors to show you the ropes. Bergen Realty Team knows Bergen County, New Jersey like the back of our hands! We’ll use our knowledge and expertise to sell your property quickly and make it a seamless process throughout. Click here to contact our team and get the best value for your home!