by Michele Newbern Gillis
Staff Writer
Today’s the day — the appraiser is coming to see how much your client’s home is worth. They are rushing around, straightening pillows, picking up toys, wiping down the bathroom, clutter is put away and making sure the litter box is clean.
Is all this stuff necessary?
You bet it is.
George Kabase, a home appraiser with Boney and Johnson Appraisers in Arlington, said there are several things a Realtor can do to help their customer’s house appraise at its best value.
“If you are doing a quick fix before I get there, it’s really not going to help,” said Kabase. “The customer should have a list prepared of what you have done to the house to improve it. The house should be clean and orderly, the animals should be put up and they should make sure animal smell is minimal.”
He said painting problem areas and doing minor repairs will help make the house more presentable and help with the value. He said to think of how the seller prepares their house to be seen by prospective buyers and do the same for the appraiser.
What can sellers do to ensure a higher appraisal price?
“Every time you spend money to upgrade your house, including putting in new plumbing, a pool in or a new roof, you help increase the value of your house,” said Kabase.
Kabase said a bank will normally initiate the appraisal process.
“Appraisals can be done for different purposes,” he said. “They can be done on a house for sale, a refinance, tax purposes or other things.”
He said some people who want to put their house up for sale will call him to get an appraisal to estimate market value for the sale of the property.
The standard price for an appraisal is $300. The appraisal goes a lot further then the 10-20 minute inspection of the house.
The appraiser has to measure the outside of the house, look for changes that need to be made, do a market analysis, write up a report, get maps on the house, call Realtors, access the Multiple Listing Service and more to come up with the final appraised value.
Kabase said it is very important for Realtors to do a market analysis of their area so they do get close to the market value before listing a home.
If a home is listed for $260,000 and it only appraises for $240,000, either the buyer has to come up with more money or the seller has to lower their price. Or, if someone lists a home for less than it appraises, then they basically have to eat the difference. So, it is important for Realtors to do their homework and help the seller set the right price.
“That happens,” he said. “Normally, the market will dictate what the house is worth. If everything is in order, normally, the house should appraise right around the selling price.”
He said Realtors use a similar process to determine listing price by comparing other homes that have sold in the neighborhood to come up with a listing price.
“They are working for a commission off the sales price, so normally they would want the price a little bit higher,” said Kabase. “But, in today’s market, where it is a rapidly appreciating market, appraisals are based on sales that took place three or four months ago, it could lag behind the actual price they could get. It helps if the appraiser has a good knowledge of the market, like Jacksonville Beach, where the prices are just going up like crazy.”
If an appraisal comes in under the asking price, they buyer could renegotiate or come up with the additional money.