Critical Appraisal Mistakes & How to Avoid Them

Avoid These Mistakes in the Appraisal Report: A Guide for a Successful Appraisal

An appraisal report is a crucial document when buying a house as it determines the property's value, influencing the mortgage, negotiations, and final decisions. Unfortunately, mistakes in the appraisal process can lead to complications. Here, we discuss five common appraisal mistakes and how to avoid them, with added insights to ensure you get the most accurate valuation.

1. Not Specifying the Appraisal Value Needed for Your Mortgage

One common mistake is not clearly communicating the desired appraisal value necessary for securing a mortgage. It’s essential to inform the appraiser of the amount you need for financing, as this directs their evaluation to meet your lender's requirements.

2. Choosing the Right Appraiser

Selecting a qualified appraiser who is willing to collaborate closely with you is critical. Opt for a professional who not only has the technical skills but also the willingness to provide a preliminary valuation. This foresight can aid in your financial planning and negotiation strategies.

3. Being Present at the Appraisal

While it might seem convenient to let the appraiser handle everything, attending the appraisal yourself can be beneficial. By being on-site, you can provide insights about the property and any updates or renovations that could influence its value. Your presence also allows you to ask pertinent questions and understand the appraisal process better, leading to a more precise report.

4. Preparing Your Home for Appraisal

Neglecting to perform minor repairs or tidy up before the appraisal can negatively impact the perceived value of your home. Small issues like a leaking faucet or peeling paint might seem trivial but can suggest poor maintenance.

Tip: Ensuring your home is in good condition and clean will present it in the best light, potentially increasing its appraised value.

5. Utilizing a Knowledgeable Buying Agent Not employing a buying agent with local market expertise is a missed opportunity. A skilled agent can leverage your local market and present relevant reference properties to the appraiser, painting a realistic picture of your home’s value to ensure you achieve the best possible appraisal.

Additional Tips for a Successful Home Appraisal

• Understand Local Market Trends: Keep abreast of current real estate trends in your area. Knowing whether the market is in a buyer's or seller's phase can influence your approach to the appraisal process.

• Document Home Improvements: Maintain a detailed record of all upgrades and renovations done on your property. This documentation can significantly influence the appraiser's assessment by highlighting added value.

• Check the Appraiser’s Credentials: Ensure that the appraiser is licensed and certified according to state and federal regulations. An appraiser’s credentials can affect the credibility and acceptance of your appraisal report.

• Communicate Effectively: Clear and open communication with your appraiser about expectations and any concerns you have about the process can prevent misunderstandings and ensure a more favourable outcome.

While we can't guarantee specific outcomes, being proactive and avoiding these common mistakes can significantly enhance the accuracy of your appraisal report.

At Starter Woning, our appraisers are highly experienced and adept at accurately assessing the value of your home to ensure you receive the most effective appraisal possible!

Contact us today to get the best possible appraisal value for your property!