An appraisal for a real estate transaction includes two main aspects: 1) evaluating the property’s condition and 2) evaluating recent sales of comparable properties to estimate the subject property’s value.
Usually, there isn’t a need to have an appraisal completed before listing your house for sale unless a legal process is prompting the sale or perhaps for a property that’s quite out of the ordinary. Get in touch if you’d like to go over your unique situation with a Realtor! A pre-listing home inspection could also help!
The appraiser will come to the house, and the inspection is typically not as extensive as the main home inspection. There are a few things the appraisers commonly call out as issues (when found), and as small as they are, they can be deal killers if not addressed. A buyer cannot receive their loan if the mortgage underwriter lists conditions that must be satisfied first. In that case, the seller would need to correct the issues, which can delay the transaction’s closing timeline.
In order to prepare your home for an appraisal, here are the top tasks to check off your to-do list!
- Install smoke alarms (newer than 10 years old) in each bedroom and all main areas. See Portland’s code.
- Install at least one carbon monoxide alarm on each level of the home. See Portland’s code.
- Secure your water heater with two seismic straps, one 1/3rd down the water heater and one 2/3rds down the water heater.
- Correct any chipped paint. You may need to remove the paint before painting the area again. If the paint is possibly from 1978 or before, test it for lead.
- Install a graspable handrail for each set of stairs and a safety railing wherever there is a drop-off greater than 30 inches.
- Ensure all gutter downspouts drain at least six feet away from the foundation.
- Ensure soil slopes away from the house.
- Cover each electric outlet and switch with a cover plate.
- Repair cracks or holes in walls, ceilings, or framing.
- Permit any additions or major remodels with the local authority.
If you need any help with these tasks, a handyman could take care of all of them. Check out my ultimate referral list if you need someone to call!
Note that this list applies to homes in good condition overall, but houses in poor condition may fail to qualify for traditional financing for a number of reasons not listed here.
Everything so far has to do with the safety and structure of the home. Most people think of an appraisal as only an estimate of value based on appearance, and it is crucial to your transaction that the home appraises for the sale price (or more). The appraiser does assess the quality and condition, so cleaning up and making everything look nice can help you avoid a low appraisal. Keep that in mind since you’ll likely be in the packing-up phase of moving out when the appraiser comes.