How Can I Prevent a Low Appraisal?
Posted On: Aug 31, 2016
Very often an appraisal can make or break a potential sale. Most lenders (e.g., banks) will require an appraisal, and will only provide a loan based on the home’s appraised value. After all, the bank is making an investment, too.
With that in mind, there are a few things you can do to prevent a low appraisal.
Get out ahead of your appraisal
The best offense is a good defense. Be proactive in taking steps that can reduce the likelihood an appraisal will come in low to begin with. Consider the following:
Be reasonable about the sale price. If you’re a seller, set a price for the home that’s reasonable given the circumstances. If you’re the buyer, don’t make an offer that’s unreasonably high. Your real estate agent can guide you on this. In either case, it’s more likely the appraisal will come in lower than the agreed sale price and cause an issue.
Be sure the appraiser is a good fit. When it’s time to have an appraisal completed, be sure to use an appraiser who is certified so you can have faith in his or her ability to be accurate and fair. Additionally, use someone who is familiar with the neighborhood and area and is accustomed to residential work.
Make the job easier for appraiser. Don’t hand over a novel, but provide the appraiser with a list of renovations and remodeling work, and the associated costs, that have been completed in the home, especially the not-so-obvious updates. Be sure to keep your house neat and clean so the appraiser can easily access all areas of the house. Make sure you return his or her phone calls promptly and answer any questions.
In our next article, we’ll explore how you can go about dealing with a low appraisal. If you’re planning on having an appraisal in the near future, be sure you select a certified appraiser from your local region.