Hey y'all, Happy Friday!
I've done tips for those of you looking for a new home, and even some about just decluttering your current home. But what about the sellers out there? Don't worry, I haven't forgotten about you! I recently heard about a couple of nasty appraisal situations from a fellow REALTOR®. One in which an appraiser had the square footage calculated at 900sqft less than the actual documented numbers, which obviously led to a much lower final estimate. And another situation where the appraiser completely disregarded the upgraded functional basement. Keep in mind, they're human too, so yes there will be mistakes and it's up to you and your real estate agent to review and approve the moving forward after an appraisal takes place.
But also keep in mind, if we're being real, there could be other factors as well. If you're a minority there's a chance your home will not get the estimate it deserves. There's been study after study about how black homeowners have received substantially less appraisal estimates than their neighbors. Therefore, you want to be sure you have a Real Estate Agent who knows the market, pulled accurate CMA's and who is willing to fight an incorrect appraisal with you. They CAN be disputed. But obviously our hope is it won't come to this. So below are a couple exerts to be sure you're prepared as much as possible beforehand for the best possible appraisal.
5 SIMPLE STEPS FOR A BETTER HOME APPRAISAL
If you’re looking to refinance your home or possibly sell, you’ll need a killer appraisal. A bank will not refinance a home for more than it is worth, and a potential buyer will not pay more than the recognized value of the home.
Here are 5 simple steps for a better home appraisal.
Document your upgrades Provide the appraiser with a list and documentation of all upgrades, renovations, and improvements to the home. (I can't stress this enough)
Tidy your space Make sure your yard looks well-groomed and the interior of your home is clean clutter-free. It is well worth the investment to have the home professionally cleaned and have your yard serviced.
Invest in the right types of renovations Kitchens and bathrooms are the best types of renovations. They will typically provide an 80% ROI. High-efficiency appliances and upgrades that improve the overall efficiency of the home are well worth the investment.
Do your homework Research and provide your own comparable valuations for similar properties in the area. Note your tone. You don’t want to come off as defensive but rather helpful.
Be available but not in the way Be present to assist with the process but don’t be the appraiser’s shadow. You want to appear helpful, not nervous that he’ll find something wrong!
Appraisals can be helpful in increasing the sale of your home or assisting in refinancing your mortgage. Use these tips and you’ll get a better value for your home.
FIVE WAYS TO INCREASE THE VALUE OF YOUR BASEMENT
The basement is usually an afterthought in homes, especially if it’s not already finished when you move in. The lack of natural light compared to the ground floor and above doesn’t always make for the most inviting space. However, there are plenty of ways to improve your basement that will both increase your home’s value and give you more space to enjoy.
1. Home theater: Basements can be the perfect space for a home theater, as they already have little lighting and offer ample space and an escape from the summer heat or winter cold. A TV mount and some simple built-in seating can be accomplished for under $2,000.
2. Playroom: Kids have a tendency to scatter their toys all over the house. Creating a playroom helps keep the mess confined to one area, plus basements often offer great storage capabilities. Just update the space to make it kid-friendly with features like egress windows, carpet, and a safe, finished staircase.
3. A bar: Grownups need a play space too! Creating a bar in your basement is an easy upgrade and allows you to keep your gatherings focused in one room, making post-party clean up easier.
4. Utility room: If you do a lot of gardening or other DIY projects around your home, add a sink and hose to give yourself a space for cleanup and storage. This is especially useful if you don’t have much room in your garage.
5. Family room: You can keep your formal living room upstairs and add a second space that’s more focused on relaxation and watching TV as a family.
Well that's all for now, thanks for reading. Don't forget to subscribe to my mailing list if you haven't already to be sure you see all the helpful tips like this to maximize your investments! Leave a comment below if any of this info helped you in your journey. Also if you want any tips regarding a specific situation you're experiencing just let me know.