It doesn’t take a seasoned REI pro to realize that a low property appraisal can hinder your business. Not only can it lower the value of your property, it can actually prevent a sale and destroy a previously negotiated deal. But there are some things you can do to fix the problem.
If you’re working to sell a piece of property you can improve its appraisal value by improving your property’s curb appeal. There are a number of ways to do this for little cost including painting the front door and adding a new handle, staining a fence, upgrading the porch light, adding some track lights to a garden area, redoing the mulch, or planting a few flowers. Anything that improves the look of your property will be to your benefit where the appraisal is concerned.
It’s best that, as a seller, you’re there when the appraisal is done. That way you can be sure to point out improvements you’ve made to the property, upgrades you’ve installed and any unique features of the property that the appraiser may overlook.
Take the time to prepare materials in advance that will educate the appraiser to any improvements you’ve made or specific features of your property. Be sure to include any information that you think may up the appraisal, even slightly. An appraiser is doing a job, and using his or her knowledge of the real estate market as a whole to set an estimated value on your property. Anything you can add to that knowledge and information that would price your home higher is in your best interest.
You’ll need to be aware of the property values in the area yourself so you know what to expect. Neighborhoods, and specific neighbors, can have a detrimental effect on your property appraisal. Knowing that up front will allow you to take measures to improve your property as much as possible before the appraiser arrives. And it can take the sting out of the appraisal if it does come in lower than you had hoped.
If the appraisal truly is lower than you know it should be, it’s acceptable to ask for a second appraisal. Of course, you may still end up with a low appraisal, but if so, you might want to hire a different company altogether. Either way, ask that whoever appraises your property be aware of the regional values of homes in your specific area.
