When you’ve found a buyer for your home and accepted their offer, one of the final steps before closing is to obtain a home appraisal. The home appraisal ensures that your home is worth the price the buyer is paying. If the home isn’t worth the selling price, the buyer might still qualify for the deal with a higher loan-to-value ratio, as long as the mortgage doesn’t cost more than the home’s value.
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When you list your house, your realtor will look at “comps,” or the sale price of similar homes in your area recently. But comps don’t usually take into account the condition of your home — or the elements that make it unique. On the other hand, a home appraisal evaluates your home and property.
A neutral third-party appraises the home and provides that information to the mortgage lender.
Fortunately, there are steps you can take as the seller to potentially boost the appraisal price.
Add a Fresh Coat of Paint
If you haven’t already painted your home during the staging process, you might consider a fresh coat of paint on interior walls. At a minimum, touch up any obvious chips or paint the trim with fresh, white, glossy paint for a clean look.
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Clean Up Landscaping
Make sure your lawn is mowed and the edges are trimmed. If it’s spring, summer, or fall, consider adding fresh potted flowers to your steps or other areas of your property.
Gather Receipts or Documentations for Home Improvements
If you’ve made significant changes to your home, such as upgrading to energy-efficient doors or windows, upgrading the kitchen or bathroom, or adding a new roof, be prepared to share that information with the appraiser.
Clear Clutter
A clean home gives the appearance of a well-maintained home. If you haven’t already cleared clutter during the home-staging process, do it prior to the appraisal.
If you have already started packing, consider stowing boxes and totes neatly in a corner of the basement or garage, or even renting a storage facility to get them out of the way.
Double Check Smoke Alarms, Carbon Monoxide Detectors and Security Systems
Replace the batteries in smoke alarms and carbon monoxide detectors, if necessary, and make sure you have them mounted in key living spaces and in front of bedroom doors. If you have a home security system, make sure it’s working and connected.
Make Minor Repairs
Houzeo pointed out the “$500 rule.” Homes appraise in increments of $500, so every perceived defect in your home, such as a leaky faucet, peeling paint, or non-functioning light switches, could cost $500 in your appraisal value.
In general, if a repair will cost less than $500 to fix, take care of it immediately. Making multiple small fixes, which could be as easy as replacing a dead lightbulb with a new, energy-efficient LED, can increase the appraised value of your home.
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This article originally appeared on GOBankingRates.com: 6 Things You Need To Do When Preparing for a Home Appraisal
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