About 51% of homes sold in May 2021 were above the asking price. The real estate market was so hot, home values shot up at record rates.
Home appraisals didn’t always keep up with the market. In April 2021, almost 20% of homes had a home appraisal value below the contract price.
The real estate market hasn’t changed much since then. Home sellers are left with two choices so the sale doesn’t fall through.
Either they work to increase the home appraisal value or waive the appraisal requirement altogether. If you waive the appraisal, sellers might have trouble getting a loan for the home.
It’s in your best interest to increase the home appraisal value before you list the home. Read on because this guide will show you how to raise your home’s value.
1. Boost Curb Appeal
Curb appeal is important to the real estate market. It also makes an impression on appraisers, too.
Do little things to improve the curb appeal of your home. Paint the front door, add flower boxes, get rid of weeds.
Curb appeal is the first impression that people get of your home. Do everything possible to make it a great first impression.
2. Clear and Clean
Give your home a deep cleaning before the appraisal. Wipe down windows, wash curtains, clean the rugs, and scrub the floors.
It’s the perfect time to get rid of clutter in your home. You’re going to have to go through your stuff when you move, so you might as well do it now.
This seems like a huge task, but there’s a big payoff. Appraisers train to spot little details of a home. You don’t want to give them a reason to think you haven’t maintained the home.
3. Make Minor Improvements
At this point, a large renovation project won’t pay off. You can make minor repairs that deliver a return on investment.
For instance, you can replace broken roof shingles. Take care of any minor plumbing issues, like a leaky faucet.
These steps are worth it, even if you need to sell a home quickly. You’ll be able to increase the market value and the home appraisal value.
4. Address All Home Upgrades
Did you get new appliances after you bought the home? You’ll want to keep the receipts, warranty, and other documentation for those purchases.
Show them to the appraiser and let them know that you’ve made improvements to the home. They get noted and taken into account in the final appraisal.
Tips to Increase the Home Appraisal Value
The real estate market value of your home is one thing. The home appraisal value is another. The key to a good home appraisal value is to make your home appear well-maintained.
Be sure to make minor repairs, spruce up the yard, and give your home a deep cleaning. Keep track of previous improvements and upgrades.
Your home appraisal value will line up with the housing market value. Click on the Real Estate Talk tab at the top for more real estate news.