How to Maximize Appraised Value of Your Texas Home

With home prices fluctuating up and down these days, actual home sales can outpace the appraisal process, sometimes resulting in a low appraisal. Bummer! Here’s how to maximize the appraised value of your Texas home.

Even though sellers are not key players in the appraisal, here are a few reminders of how the appraisal process works and your options for participating.

Editors Note: Do not confuse an appraisal with an inspection. These are two completely different things. Home Inspections 101—What to Expect

Fact: The Appraiser Works for the Mortgage Lender.

Appraisals are part of the traditional home purchase process. Lenders require them for sales and most refinances, too.

A home appraisal is an independent opinion of your home’s value performed by an appraiser licensed by the State of Texas.

The lender may order the appraisal directly from an appraiser or through an appraisal management company coordinating the process. The appraiser’s job is to give an opinion of value so the lender can decide on the amount of money it will loan on the property. How do they reach value?

Appraisers are trained professionals, and this is how they often reach value:

• First, they derive a base for your home’s value based on the recent sales prices of homes comparable to yours in terms of bedrooms, bathrooms, style, and square footage.
• Then, accounting for features and amenities that make your home different, the appraiser applies “adjustments” to that base value. This methodology is called the “Sales Comparison” approach; the result is your home’s appraised value. It’s the most common appraisal method used by lenders.

What can you do?

If you’re getting a home appraisal, there are several things you can do to maximize the final home appraised value. And it’s not that difficult.

As a homeowner, you can’t affect the sales prices of your home’s comparable properties, but you can help your appraiser understand how your home stands apart from these homes. This can affect your home’s adjustments, resulting in a higher appraised value.

You Can Talk to the Appraiser

Real estate agents can communicate with the appraiser because they have today’s experience in the market and have researched the real estate activity specific to this transaction. So they can share their fact-finding with the appraiser.

You can also be at the property when the appraiser is there and answer her questions. Even so, give the appraiser space to do her job.

You Can Provide Documents to the Appraiser

Documents such as plats, surveys, deeds, covenants, neighborhood details, and comparable sales are all relevant items the appraiser may be able to use.

With home appraisals, every valuation dollar can matter. With that in mind, here are a few tips for maximizing your home’s appraised value :

• Be home for your appraisal so you can answer the appraiser’s questions if there are any.
• Mention any new roofing, flooring, HVAC, plumbing, or windows you’ve installed since purchase.
• Don’t mention projects or repairs you’re “about to undertake.” Appraisers don’t credit for unfinished projects.
• Make minor household fixes before the appraisal (e.g., leaky sink, running toilet, peeling paint).
• Present a tidy home. This simple exercise can contribute to a higher “overall condition” adjustment.
• Lastly, schedule the appraisal for a convenient time for your entire household.

An appraiser needs to see, measure, and take photos of every room in your home. Suppose a room’s door is closed because of a resting child, for example. In that case, the appraiser may need to schedule a second appointment to complete the appraisal, and that can raise your appraisal costs.

What to do if you Have Concerns About the Appraisal Report

An appraiser cannot discuss their reports with anyone but their client—the mortgage lender—and anyone the lender designates to receive the information. Contact the lender in writing if you think there are errors in the report or want the appraiser to consider additional information.

Like real estate agents, appraisers should be competent in the geographic area where they work. If you think the appraiser isn’t qualified to appraise property in your area, contact the appraiser’s client—the lender who ordered the appraisal—and share your concerns.

You can also contact the Texas Appraiser Licensing and Certification Board, which enforces the rules and laws appraisers must follow.

The Bottom Line

Please don’t push, even though the home appraisal is personal and impersonal!

As a seller, you may be able to play a passive role in the process. The appraiser will be more likely to listen to you if you understand how important his work is to your buyers in getting the loan they need.

Want to know what’s happening in your market? 

Selling can be difficult. That’s why we make the real estate part easy.
Meet our team at North Point Realty!