How to Get a High House Appraisal

Appraisals: 7 Tips To Help You Get the Highest Appraisal Possible For Your Home

 One common thread that runs through homeowners is that they typically think their home is the nicest in the development, according to Loreen Stuhr, veteran appraiser with Appraisers of Las Vegas. Stuhr goes on to say that the single most difficult challenge she faces in her business is trying to convince a homeowner otherwise. 

 And for buyers, it is not any better, as skillfully explained by Bill Gassett, in his article: “Reasons Why An Appraisal Comes in Low”[http://www.maxrealestateexposure.com/reasons-appraisal-comes-in-low/}: “It can be quite upsetting to find out that an appraiser thinks the home you want to buy is not worth what you thought it was. And a low appraisal can be more than just upsetting – unless you are a cash buyer, a low appraisal can make it impossible for you to purchase your dream home.” 

 Whether or not you own the nicest home on the block, when it comes time to refinance or sell it, getting the highesst house appraisal possible, is crucial. Fortunately, there are steps you can take to assure that you receive credit for all the ways you think your house is worth maximum dollars.

If your house is on the market, and you’ve taken the time to properly prepare it for the market, half the battle is won right there. If you think you have work to do in that area, here are a few suggestions:

1. Improve Curb Appeal

Although many homeowners are familiar with the term “curb appeal” as it applies to prospective buyers, many don’t realize that the home’s first impression is important to the appraiser as well. Landscape maintenance chores, such as clearing away debris, trimming trees and shrubs, spreading fresh mulch in the beds and greening up the lawn will all help to bring your home close to market value.

2. Clear Away Clutter

Although clutter may be evidence of a busy family, it can also lead an appraiser to question if the homeowner can maintain the entire home if they can’t even keep their countertops and other surfaces free of junk.

Some quick de-cluttering tips:

·       Box up and store excess items in the home

·      Pay close attention to the kitchen and bathroom. If what’s sitting on the counter is frequently used, hide it away in a cupboard so that your counters are free of anything that isn’t decorative.

·       If all else fails or you don’t have enough time to properly clean, shove your clutter into boxes and store it briefly in your car or storage unit.

3. Clean the House

While this seems like an obvious step, many homeowners are busy with jobs and family concerns and overlook the obvious fact that a clean home is a desirable home.

What if you don’t have time to clean your home before the appraiser comes by? You probably don’t have time to sell your home. Do it once, do it right!

4. Make an Investment

If you have the funds to make updates to the home, Stuhr recommends the following:

·       Paint the interior a neutral color. For the price of a few cans of paint and some elbow grease, you can actually add value to the home.

·     Get rid of vinyl flooring. Stuhr claims that vinyl flooring screams “dated!” and recommends replacing it with ceramic tile, wood or even laminate flooring.

        Update countertops. Laminate countertops are “bottom rung,” according to Stuhr, and should be replaced with ceramic tile or, preferably, granite.

As you tour your home deciding what changes to make, keep an eye out for maintenance problems such as torn window screens, dripping faucets, running toilets, missing trim and broken door handles. These should be fixed prior to the appraiser’s arrival.

5. Compile an Information Packet

The appraiser has access to several sources from which to pull information about your house and those that have recently sold. This information, while generally reliable, does sometimes include errors. To guard against a low appraisal based on erroneous information, compile an information packet for the appraiser. Just a few, neatly typewritten pages in a folder will do the trick. Here are several items to include in the package:

Comparables – Similar Homes in Neighborhood

Although your appraiser has access to neighborhood sales information, it’s a good idea to supply him or her with any additional information you may have on why houses in your area sold for the prices they did. If your neighbor took a job out of state, and because he needed to relocate quickly he dropped the list price dramatically to get a sale, make note of that to the appraiser.

6. Comparables: homes sold in one-mile radius over last six months.

In fact, it’s a good idea to have your real estate agent print out the MLS sheet for every home sold within a one-mile radius of your home over the past six months. These homes qualify as the best comparable. Go over these printouts, making notes of anything you or your agent know about the sale that affected the price, and include those notes in the package.

“Brag” Sheet – Why Your Home Deserves a High Price

Sometimes the information available to an appraiser is in error and even one error can lower the value of your property significantly. Appraisers will refer to your brag sheet while preparing the appraisal, according to David Hesidenz, of David Hesidenz Appraisals in Butler, PA.  Here’s what to include on your brag sheet:

·       Exact street address

·       Year built

·       Number of bedrooms

·       Number of bathrooms

·       Add the square footage if you like, although the appraiser will measure the home.

7. Make sure the appraiser knows about major home, property improvements by telling them!

Then, list any major improvements to your property, the date they were performed and the cost. Include the name and phone number of the contractor who performed the work, if you have it. Some of what should be included on this list:

·       New windows

·       New floors

·       New countertops

·       Finished basement

·       Replacement of the home’s major systems, such as heating and air-conditioning

·       Upgraded electric or plumbing

·       New roof

·       Room additions

·       Converted garage

This package, if prepared properly, gives the appraiser accurate, detailed, firsthand information to refer to when compiling his or her report for the lender.

.

Call me at (970) 217-3245 to find out how I can sell your home for more money, less hassle, and sell it faster.

If you have any real estate questions, then do not hesitate to send me an email at paul@ross-homes-noco.com

Best Regards,

Paul Martin Ross

RESIDENT REALTY/Northern Colorado

Website: http://www.ross-homes-noco.com
Phone: (970) 217-3245

Email: paul@ross-homes-noco.com

pross@residentrealty.com

Real Estate Professional with over 28 years’ experience / SPECIALTIES: Northern Colorado Real Estate / Luxury Homes / New Construction / Custom - Semi-Custom Homes in Northern Colorado

GUARANTEED SERVICE...GUARANTEED RESULTS

GUARANTEE #1

When I list your home, I will create video slide shows and use them to get your home on page 1 of Google in under 48 HOURS and use this to attract qualified buyers FAST!

GUARANTEE #2

When I list your home, I create a list of targeted buyers, people in the market looking for a home like yours. I am proactive working with this list daily to get your home SOLD FAST!  

GUARANTEE #3

Lowest commission for a full-service agent!

Contact me today to learn about ALL of my strategies to get you the BEST price for your home in the SHORTEST possible time! 

Instagram

Like me on Facebook 

REVIEWS

Please do remember that my business grows on referrals. If I have provided you good service and you have a sibling, parent, neighbor, friend or coworker that might be in need of Real Estate services please pass along my contact information. Thank you in advance!

Not intended to solicit any properties already listed for sale with another real estate agent. If your home is already for sale, then please disregard this message.

Top 10 Home Improvements That Increase Your Home’s Value

Most appraisers have stories of homeowners irate over the fact that the special remodeling job they performed added zero value to their home. The imported Italian tile you used in your entryway or the pool in the backyard may be of immense value to you while you live in the home, but unfortunately, they aren’t items that buyers shopping in your neighborhood value.
To get the most bang for your home improvement buck, consider these 10 best home improvements:

1. Indoor Systems

Before you consider cosmetic and even functional improvements (such as adding additional square footage) to the home, make all needed upgrades, repairs or replacements to the home’s major systems. Major systems include plumbing, heating, electrical and sewer systems, among others.

Buyers want assurance that these basic items are in working order and won’t need to be replaced or repaired in the near future, an issue that will most likely be addressed in the home inspection. Older homes may require updated wiring and plumbing. An old roof should be replaced. Address problems with heating and air-conditioning units.

2. Outdoor Replacement Projects

Replacement projects will give you more added value than remodeling projects, according to Remodeling Magazine. Fortunately for homeowners, these types of projects are also the least expensive and add to the home’s curb appeal. Consider replacing the garage door, siding, the front door and windows. The average return on investment for these projects is almost 72 percent.

The ROI on replacing garage doors, siding, front doors and windows is almost 72%!

The magazine suggests fiber-cement or foam-backed vinyl siding, adding a steel entry door, and vinyl window replacement.

3. Attic Bedroom

The number one home improvement project as far as recouping a return on your investment is the addition of an attic bedroom, according to Remodeling Magazine. At a nationwide average cost of a little over $50,000, expect to recoup 72.5 percent of the cost of adding the attic bedroom when you sell the home.

4. Add an Additional Bathroom

Over the past few decades, the kitchen was the average home buyer's focal point when choosing a home. In 2011 bathrooms became more important to buyers than kitchens. That said, an additional bathroom, even a half bathroom, adds significant value to your home, according to the experts at the National Association of Home Builders (NAHB).

A half bath may add up to 10.5 percent to a home’s value, while a full bath can tack on an additional 20 percent. Of course, the amount of additional value you will receive varies according to the home’s other features.

In 2011 bathrooms became more important to home buyers than kitchens.

The price of adding another bathroom to the house varies as well, depending on region. If you live on the West Coast, plan on paying almost $50,000 for a new bathroom, according to Remodeling Magazine. The magazine also states that, at the sale of the home, you’ll recoup almost 67 percent of the cost of the additional bedroom. East Coasters can plan on spending a bit less – around $41,000, but will recoup less as well – 47.7 percent of the cost.

Tip: If you’re on a tight budget and can’t afford a bathroom addition, give the existing bathrooms a face-lift. A fresh coat of paint, new fixtures and new flooring will add value and make the home show better.

5. Kitchen Improvements

Kitchens tend to be the heart of a family home so anything you do to improve your kitchen will add value. Again, painting the kitchen should be the first step, whether you plan an entire remodel of the room or just a minor face-lift. Vinyl flooring tends to make the room look dated, so consider replacing it with laminate or tile. New cabinetry, kitchen sink fixtures and updated lighting will all add value.

Tip: Folks on a budget can still increase value by sanding and then painting or staining cabinetry and adding new hardware and by purchasing new (matching) appliances and new counter tops.

6. Boost Curb Appeal

When a TV show can be built around this one subject, it’s a pretty good indication of its importance. Curb appeal is what beckons potential buyers into your home and underestimating its importance to the value of a home is a big mistake many homeowners make.

If you have a healthy budget, and your landscaping needs extensive work, consider hiring professionals for this home improvement project. A landscape architect can be pricey but necessary if your yard is in desperate need of an overhaul. According to Jeff Mitchell with the American Society of Landscape Architects (ASLA), curb appeal shouldn’t stop at the front yard, but should be extended to the backyard as well.

At the very least, clean the yard of any debris, trim trees and shrubs and spread fresh mulch in the planting beds. A poorly maintained front yard can result in up to a 10 percent drop in value, according to Houston appraiser Frank Lucco.

Budget curb-appeal improving landscape projects include:

• Line the walkway with solar-powered lights. The big home improvement stores carry a variety of inexpensive styles and all you need to do is stick them in the ground. Not only are they functional – lighting your way at night – but they provide ornamentation as well.

• Green up the lawn, keep it mowed and edged and reseed bare spots.

• Add color to the planting beds. Be careful to keep your color choices aligned with the home’s architecture. In other words, don’t add cottage garden-type flowers to a bed in front of a starkly modern home. Certain plants are grown because of their interesting and colorful foliage, such as hosta and coleus, and are better suited to more modern homes. If you have questions about what to plant, consult with the experts at your local nursery.

• Plant a tree. Yes, it sounds like an Arbor Day slogan, but planting a tree in your front yard pays off by helping cut energy costs in the summer (if strategically located to shade the house) and by adding value to the home. Not sure which tree to plant? Use the fun National Tree Benefit calculator to assist you with making the right choice. Just enter your zip code and the calculator will bring up a list of trees suited to your region and let you know the benefits of each.

7. Refurbish the Basement

Converting the basement into a finished room adds usable square footage to the home. Finishing basements is one of the best ways to increase your home’s value as it transforms unfinished basements – glorified storage space – into a usable, attractive room.

Consider the following basement bar. Who wouldn’t be willing to splash out thousands for the privilege of owning something like that?

Here is a short list of rooms your basement can become – and accoutrements to put inside it – if you choose to renovate it:

• Sports den – Big screen TV, sports memorabilia, overstuffed couches and cushy carpeting
• Lounge – Pool table, wet bar, dark hardwood floors and a poker table
• Children’s play area – Playset, soft furniture like beanbag chairs, arts and crafts table and bins and shelves for toys and books

8. Additional Storage

Most new homes come equipped with lots of storage. Older homes, on the other hand, tend to lack even some of the basic storage options, such as a coat or linen closet. If you lack the space to expand closets or other storage spaces or build new ones, consider redesigning the spaces you do have.

There are specialty stores now dedicated to nothing but storage solutions. Do-it-yourself projects may include adding a complete closet system or adding organization details to a pantry.

9. Additional Square Footage

Every 1,000 square feet added to a home raises the value by more than 3.3 percent, according to a 2003 study for the National Association of Realtors®.

While that percentage doesn’t sound significant, when you put it into numbers it makes a lot more sense. For instance, if your home is valued at $200,000, a 3.3 percent increase adds an additional $6,600 to the value.

Additionally, the 3.3 percent statistic can most likely be adjusted upward based on the age of the study. The study also claims that each additional bedroom adds 4 percent to the value of the home.

Each additional bedroom adds 4% to the value of the home.

If your laundry is located in the basement, the value of your home decreases by two percent, so if you plan on adding square footage to the home, build a laundry room on one of the upper floors.

10. Miscellaneous Home Improvements

There are many small items you can add to the home that buyers will perceive as adding value. Some of these include:

• Alarm systems
• Water filtration system
• Luxury touches such as an upgraded dishwasher, whirlpool bathtub and built-in wine coolers may peak the buyer’s interest. Luxury homeowners can take this a step further by adding an in-home theater and additional spa-like features to the bathrooms.

Caveat – Invest in Home Improvements Wisely. One of the most important things to keep in mind when considering any home improvement project is to not go overboard. The value of your home is partially determined by the value of your neighbor’s homes, so don’t make improvements that bring your home’s value significantly over the general value of other homes in your neighborhood.

Source: Shannon O'Brien - RealEstate.com

Call me at (970) 217-3245 to find out how I can sell your home for more money, less hassle, and sell it faster.

If you have any real estate questions, then do not hesitate to send me an email at paul@ross-homes-noco.com

Best Regards,

Paul Martin Ross

Resident Realty

Website: www.ross-homes-noco.com

Phone: (970) 217-3245

Not intended to solicit any properties already listed for sale with another real estate agent. If your home is already for sale, then please disregard this message.

LETTER TO FRUSTRATED SELLERS

LETTER TO FRUSTRATED SELLERS