The Top 10 Things to do to Prepare for an Appraisal

Reblogger Cari Dandy
Real Estate Agent with Russ Lyon Sotheby’s International Realty AZDRE#SA550358000

Appraisals seem to be getting tougher these days. I think everyone has heard of someone whose home "didn't appraise" (for the contract value). This appraiser has some good tips to help make sure you have a fighting chance of meeting that value! And make sure your real estate agent is on top of it!

Original content by Michael S. Bolton

How To Prepare for a Home Appraisal

Preparing for an appraisal inspectionYou’ve just signed all of the paperwork for your refinance, handed the loan officer the check for the appraisal, and now you’re wondering what is going to happen next. Good news-the appraisal inspection is painless, and usually takes anywhere from 30-60 minutes to complete. However, there are a few things that you should do to help the process move along as smooth as possible.


Preparing for the appraisal inspection:Appraisal checklist of what to do for an appraisal

  • Create a detailed list of the recent improvements, which should include the following: when completed, cost of the improvement, before and after pictures if available.
  • Make sure each room is accessible; the appraiser is required to inspect each room.
  • If there is a crawl space, this area will also have to be made accessible for inspection for an FHA appraisal.
  • Give the appraiser room to do their job. Errors are more likely to occur when the appraiser isn’t able to concentrate on their inspection.
  • Keep all pets restrained. I’ve been bitten twice by a dog, and once by a cat; the owners had assured me that their pets were friendly-not so much!
  • If you live within a development that has a homeowners association, have the name and phone number of the contact person available, along with a fee statement.
  • If the appraisal is for an FHA loan, then the area leading to the attic will have to be cleared and made accessible-the appraiser is required to make at least a head and shoulders inspection of the attic area.
  • Walk through each room and straighten up as if you were getting ready for company to visit. Appraisers are objective and can look past many things, however, the underwriter reviewing the appraisal photos may feel differently.
  • Complete any unfinished projects-most appraisals are done “as is”, and any projects that haven’t been completed, will have to be adjusted for within the appraisal report.
  • A copy of any agreements regarding easements (shared driveways and/or garages,etc.) should be made available.

Concerns about value:

House and concern about valueFor years I’ve been a big proponent of developing a relationship with a Realtor. I’m not talking about a real estate agent who happens to be a relative that lives half way across the state. I’m talking about one that does a lot of work within your neighborhood.

By building a relationship with a professional Realtor (this is all they do and they do it well), they’ll be able to give you great insight as to what’s happening within your neighborhood, and they would be glad to let you know what similar homes are selling for.

 

Once the appraisal is complete:

You have a right to a copy of your appraisal, so ask for it. If you should find any errors or have any concerns, talk with your loan originator. This is hard for borrowers to understand, being that they paid for the appraisal, but the mortgage company is the appraiser’s client, and they can’t discuss the appraisal with anyone else unless given permission.

Trying to understand an appraisal can be like trying to read the “Dead Sea Scrolls,” so ask questions and get clarification when needed-you paid for it!

If you have any questions, or Minnesota real estate appraisal needs (divorce, bankruptcy, tax appeal, or estate planning) please contact Michael at 612.599-2581, or use the form on the contact page.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Tags:
appraisals
home buying
appraisers
appraisal values
meeting appraisal value

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
1,431,004
Jeffrey DiMuria 321.223.6253 Waves Realty
Waves Realty - Melbourne, FL
Florida Space Coast Homes

Hey Cari...happy New Year...and great re-blog. I did not see this one the first time around. Thanks

Jan 04, 2012 04:43 AM #1
Rainmaker
290,082
LaNita Cates
REMAX of Joliet - Joliet, IL

I find that most of our appraisals are done from appraisers that live 30+ miles away and have no idea about our market including schools. They have been so bad in our area.

Jan 04, 2012 04:45 AM #2
Rainmaker
69,238
Cari Dandy
Russ Lyon Sotheby’s International Realty - Scottsdale, AZ
Homes for Sale - Scottsdale AZ

Jeffrey, Happy New Year to you!  Thanks for the comment - I decided to re-read my addition to the top of the post and noticed a grammatical error that is now fixed! Hope you have a wonderful week out there!

Jan 04, 2012 04:51 AM #3
Rainmaker
69,238
Cari Dandy
Russ Lyon Sotheby’s International Realty - Scottsdale, AZ
Homes for Sale - Scottsdale AZ

Hi LaNita! I think it's getting more challenging to find appraisers who want to continue to do this business - I know a lot have left the busines.  The restrictions they've been given are getting even more challenging in April 2012 with a new set of guidelines, from what I learned from a top appraiser in the valley here.  So it takes them longer to complete one and the pay has not increased for them. I think we are all going to have to really be on our toes this year! Hopefully values WILL be getting stronger soon!

 

Jan 04, 2012 04:54 AM #4
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
69,238

Cari Dandy

Homes for Sale - Scottsdale AZ
Ask me a question
*
*
*
*
Spam prevention

Additional Information