Preparing For An Appraisal Before Listing Your Farmington Hills MI Home

Preparing For An Appraisal Before Listing Your Farmington Hills MI Home

Preparing for an Appraisal Before Listing Your Farmington Hills MI Home 

You’ve decided to put your Farmington Hills MI home on the market. Before listing your home, you may want to have it appraised. An appraisal is an unbiased, professional opinion of how much your home is worth. The results of the appraisal will help you determine the asking price for your home. Homeowners often get nervous about the appraisal process and what could end up hurting the appraised value of their home. 

Read on for some tips on how to best prepare for your appraisal: 

Make sure your home looks good from the curb  

Curb appeal is one of the most important aspects of preparing a home for sale and it’s also important when preparing for an appraisal.  Similar to neglected repairs, a home with little or no curb appeal can create a poor first impression for the appraiser and lower the value of your home. 

Houses with high curb appeal receive better appraisals, hands down. Start by walking around your home before the appraisal with a critical eye. Remove any clutter from both the front and backyards like stray toys, bicycles, and lawn furniture.

Also, look for any damage that could decrease your home’s value. Are there loose floorboards? Do the gutters work properly? Pay attention to things like overgrown shrubs and bushes, weed-filled flower beds, and damage to the exterior of your home. Be sure to also address any chipped or peeling paint.

While an appraiser won’t necessarily care what color your house is painted, they will pay attention to the condition of your paint. Chipped or peeling paint, especially on the exterior of your home, can be an invitation to wood rot and other structural issues.  

Take a look at comparable homes in your area

The market value of your home is largely determined by how it compares to similar homes in your area that have recently sold. Your Farmington Hills MI real estate agent will be able to pull information for you on recent closing sale prices in your neighborhood. 

This will provide valuable insight into how your home measures up. Before an appraiser even steps foot on your property, they’ll gather a list of comps to compare your home.

They’ll use the price of similar homes sold nearby, and adjust based on the features and qualities of your home. If homes in your area are selling with new hardwood floors, updated appliances, and fabulous curb appeal, you should consider taking on similar projects to fetch the same value. 

Inspect for potential safety issues around your home

As you prepare for an appraisal, you’ll want to inspect any potential safety issues in your home that could raise a red flag for an appraiser.  A few of the most common repairs that are cited in appraisal reports include peeling paint, missing handrails, and broken windowpanes.

 If you are unsure if you have any potential safety issues, an experienced Farmington Hills MI real estate agent can walk through the home and point out things that might be cause for concern during the appraisal.

Make some smaller home updates to your home 

Outdated décor can have a negative impact on an appraisal, while a more modern appearance can have the opposite effect.  Small things don’t add a lot in an appraisal, but they add up – giving the entire home the appearance of being modern and updated. 

Repaint the walls and hang new curtains. Install shiny new doorknobs or faucets. Update old countertops, paint cupboards, or reface them and replace old flooring, if you can. You’d be surprised how inexpensive flooring can be to replace, especially if you do it yourself.

Laminate flooring and tile will refresh a room, as will updating countertops, even laminate countertops. Keep the looks neutral and adaptable, yet modern.  

Give your home a deep clean 

Give your home a deep cleaning.  A home will appear to have more worth when it’s clean. Pay extra attention to areas that might not be part of your regular cleanings such as the inside of cabinets and the corners of ceilings.

Get rid of any scuff marks on the walls and shampoo your carpets to remove lingering stains or odors. Focus on the exterior of your home as well, such as cleaning out gutters, wiping down the outsides of windows, and even power washing the floor of your garage and the sides of your house.

A spic and span home inside and out looks newer and more attractive to both appraisers and buyers.

Compile a comprehensive list of upgrades

Be sure to inform your appraiser of any improvements you’ve made in your home within the last 4 years. New additions, replaced HVAC units, siding, gutters, a new roof, remodeled kitchens, and updated bathrooms will all positively reflect on your appraisal. Don’t assume the appraiser will notice every updated fixture or siding replaced.  

Make sure everything is in working order

Go through your property and ensure that everything is working how it’s supposed to. Makes sure any safety equipment installed is working properly like smoke alarms, carbon monoxide alarms, and home security alarms. 

Replace burned-out bulbs, turn on any pilot lights that you have switched off, and take care of anything else that suggests something might not be quite right. While an appraiser won’t go into as much detail as the inspector will, it’s best to show that everything is in good working order.

Look beyond your house to the surrounding area 

Are there new schools, parks, highway ramps, stores, or other public amenities that have been added since you bought the house? Point these out to your appraiser. The appraiser may not be totally familiar with the area and amenities such as these can add even more value to your home.  

Farmington Hills MI REALTOR -Tom Gilliam

When you are ready to list your Farmington Hills MI home, contact Farmington Hills MI REALTORⓇ – Tom Gilliam. Tom can help determine the market value of your home and make suggestions on how you can command a higher asking price.  

Tom is proud to be one of the most trusted real estate agents in Farmington Hills – offering his guidance and expertise to home buyers and sellers for the past 20 years. He understands that buying or selling a home is a significant financial and life decision and that you are looking for someone you can trust.

As your agent, Tom will protect your interests, advocate for you, negotiate on your behalf, and guide you towards a smooth and successful transaction. Get the process started today by contacting Tom Gilliam directly at (248) 790-5594 or you can reach him by email.

Tom Gilliam, REALTOR®
RE/MAX Classic
29630 Orchard Lake Rd.
Farmington Hills 48334
Direct: 248-790-5594
Office: 248-737-6800
Email: Tom @ Homes2MoveYou.com
License #314578 

Home Appraisal Tips For Farmington Hills MI Homebuyers

Home Appraisal Tips For Farmington Hills MI Homebuyers

Home Appraisal Tips For Farmington Hills MI Homebuyers

You’ve been shopping for a home in Farmington Hills MI for weeks and you finally uncover the ideal home for your family in a great neighborhood. You put in a good offer and it gets accepted. If you are planning on taking out a mortgage, it now has to undergo a comprehensive appraisal of its worth. 

Although this may sound harsh, your dream-home-to-be isn’t a “home” to your lender. It’s a house and collateral, and if for some reason you are unable to make your mortgage payments, your lender can foreclose on your home and sell it to recoup all or some of its costs. 

Your mortgage lender will have to know the value of your home before handing over that large chunk of change. After you sign a home purchase agreement (the contract between you and the seller about the terms of the pending sale), and before your lender approves your loan, the home you are planning to buy must pass an appraisal by an unbiased third party – the appraiser.  

The home appraiser’s job 

An appraiser is a state-licensed or certified professional. Their job is to assess an opinion of value or how much a house is worth. The appraiser is a neutral party who doesn’t represent the buyer or the seller, a contractor chosen by your lender through an appraisal management company (AMC).

They work for lenders and help them decide if the home is a sound investment and worthy of the loan you’re asking for. Unlike a home inspector, who looks for defects that could cost the buyer money down the road, an appraiser looks at home components that contribute to the home’s value.

The appraiser will survey the house in person using specific criteria such as location, age, condition, square footage, additions/renovations, and recent sales of comparable homes. Home appraisals aren’t public records, but appraisers use public property records and other public documents to support their appraisals.

Some sellers have their Farmington Hills MI homes appraised before listing them on the market to help arrive at a fair asking price.

Who pays for the home appraisal?

Generally, it’s the buyer’s responsibility to pay for the home appraisal, a fee that’s typically included in your closing costs. While the cost of a home appraisal varies by the size and location of the home (among other factors), you can expect to pay around $300 to $400, according to recent estimates. Appraisers protect the bank and buyers from a potentially bad deal, so they’re worth every penny. 

The appraisal report

Once the appraisal is finished, the appraiser issues a written report with their opinion of the value of the home, and both the buyer and the lender will receive a copy of the report. If the home’s appraised value ends up higher than what you’re paying, generally the deal will move forward. 

However, if the appraisal is lower than your offer on the Farmington Hills MI home, your lender won’t give you a loan for more than the appraised value. If you and the seller agreed on $300,000, for example, but the appraisal value comes in at $290,000, there is a $10,000 shortfall. 

Options if faced with a low appraisal

If you are faced with a low appraisal, all is not lost. Negotiations aside, if the appraisal price seems much lower than the contract price, your agent can ask the appraiser to reevaluate their report. Appraisers can sometimes make mistakes in the basic data.

For instance, the number of bedrooms or baths. Or maybe, they need context for the comps, such as if a recent sale for a lower-than-typical price was between family members — or if a more-recent sale is available that changes the perspective.

If your offer included an appraisal contingency, you can renegotiate the price with the seller by persuading them to lower the sales price or split the difference between the home’s appraised value and the offer. If the seller is unwilling to negotiate, you can choose to walk away from the deal and keep your deposit.

Or you could decide to pay the additional $10,000 out of pocket so your home loan goes through. In either case, you have options. 

Talk with your Farmington Hills MI REALTOR® about their experience with the appraisal process, how they would recommend handling any shortfall — and how willing you should be to walk away from a deal that’s not right for you.

Partner with Top-rated Farmington Hills MI REALTOR® – Tom Gilliam

Whether you are interested in buying a home in Farmington Hills, MI, or it’s time to list your current property, experience matters most in a changing market. Top-rated Farmington Hills REALTOR® – Tom Gilliam offers over 20 years of local experience, in-depth market knowledge, and access to the most up-to-date listings for Farmington Hill MI homes for sale.

Known for his professionalism and care for every detail, Tom is an expert at uncovering the perfect home for his clients’ lifestyle needs in the right neighborhood or community.

2020 Best of Farmington Hills REALTOR - Tom GilliamIf you are ready to sell your home, Tom will create a comprehensive marketing plan that exposes your home to the public as well as to other real estate agents through the Multiple Listing Service (MLS), other cooperative marketing networks, open houses for agents, etc.

Your listing will appear on all the most popular real estate sites where buyers spend hours a day looking at homes such as Realtor.com, Zillow, Trulia, REMAX, Redfin, and dozens of others. 

Your property will also be featured on Tom’s own highly-trafficked website Homes2moveyou.com. You can be assured that your home will get sold quickly and for the highest market price.

Search Farmington Hill MI Homes for Sale

Tom works very hard for his clients and will be there to protect your interests, advocate for you, negotiate on your behalf, and do whatever it takes to ensure the best possible results. If you or someone you know is interested in buying or selling Farmington Hills MI real estate, please give top-rated Farmington Hills MI REALTOR® – Tom Gilliam a call today at (248) 790-5594 or you can reach him here.

Tom Gilliam, REALTOR®
RE/MAX Classic
29630 Orchard Lake Rd.
Farmington Hills 48334
Direct: 248-790-5594
Office: 248-737-6800
Email: Tom @ Homes2MoveYou.com
License #314578 

 

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