What You Should Know About Home Appraisals

Home Appraisals

1. What the appraisal report includes: Your appraisal — which could range in length from two or three pages to more than a hundred, depending on its scope — will include details about the house, a description of the neighborhood and side-by-side comparisons of similar properties. It will also contain an evaluation of the area’s real estate market, notations of major problems with the property that will affect its value and an estimate of the expected time it will take to sell the property.
How an appraisal report is developed: Appraisals are opinions of value, and residential real estate appraisals compare your home with similar homes that have sold. Remember, an appraisal is not the same as a home inspection. Inspections look for physical imperfections in the home, making sure it is structurally sound and so forth.
2. How to get a copy of your appraisal: You paid for an appraisal when you bought your house. If you didn’t request a copy of the appraisal at the time, you can request it from your lender — it’s your right under federal law.
3. What to look for in the report before you sell: Focus on items that had a negative adjustment — they might be a good checklist for elements to update or remodel.
4. Examples of issues that could cause a negative adjustment: less than the typical number of baths for the house’s size, outdated kitchens and baths, or a one-car garage or no garage in a neighborhood where two- and three-car garages are standard.
5. Why an appraisal before your home hits the market might be wise: The fresh appraisal will help accurately price the home and ensure it will eventually appraise for your asking price at the time of the sale. Sellers are sometimes shocked when their house appraises below the asking price, which could cause a deal to fall through or for the seller to be forced to reduce the home’s price.

HERE ARE SOME HELPFUL LINKS ABOUT HOME APPRAISALS

Understanding the Home Appraisal Process –NYimes.com

10 tips to boost your home’s appraisal —Wall Street Journal