Maintenance, decor help boost appraisal value

Although many home appraisals are requested after a buyer expresses interest in a property, sellers can benefit by taking the time to do some prep work before a visit from an appraiser.
Homeowners who haven’t put their houses on the market yet can increase the home’s appraised value, prevent surprises and perhaps avoid misguided investments if they gain an understanding of what qualities an appraiser will be looking for during the process.
Anne Foster, owner of Anne Foster Appraisal Co., said that it is extremely important for homeowners to understand the differences between a home appraiser and a home inspector.
Appraisers look at overall condition, taking into account square footage, room count, bathroom count and location, while home inspectors are hired to evaluate the working order of a home, including electrical, piping and roofing work, Foster said.
Because appraisers are evaluating marketability, structural problems like settlement and sagging roofs will affect a house’s appraisal value, even if a structural engineer or home inspector is called in to examine the extent of the problem, said Mary Howell, co-owner of Howell Appraisal Co. Inc.
“We try to make it clear we’re not home inspectors, but if we see something important, it will go into the report. We try to look at a house through the buyer’s eyes, and if we feel it will affect the marketability of the house, we’ll recommend a study and make an adjustment on the value,” Howell said.
The biggest factors that can influence a home’s appraised value are also the aspects that will increase the selling price.
“The sale price and the appraisal price usually fall within a certain percentage of each other; however, there are always exceptions, like distress sales, etc.” Howell said.
Jack Rhoads, real estate broker with Murney Associates, said real estate agents will do comparative market analysis to determine a home’s listing price.
That analysis is not much different from the home appraisal, and Realtors will usually advise homeowners to do work that is similar to what an appraiser would suggest, Rhoads added.
Up-to-date maintenance, fresh paint and new carpet can all increase a home’s appraised value. Colors should be neutral and not highly decorative to appeal to as many potential buyers as possible, Foster said.
Cleanliness counts, too.
“You would like to think that cleanliness is not going to affect the value, but in some cases, you start to wonder, “If the house is like this, what can’t I see?’” Foster said.
A house should be well-maintained, sanitary and clean, Howell said. Pet stains and the effect of heavy cigarette smoke and dirty walls all may negatively influence the appraised value of a home.
Landscaping, or curb appeal, will affect the marketability of the home as well.
“It gives the buyer their first impression of the home. If there is curb appeal, they will typically think that will follow through into the rest of the house,” Howell said.

Future considerations
If a home sale is in the future, perhaps a year or two down the road, improvements can be made to increase both sale price and appraisal value.
“Location is the number one influence on appraised value,” Howell said.
It is, however, important to keep certain neighborhood qualities in mind when considering improvements.
“You don’t always want to be the biggest or most expensive house in the neighborhood,” said Robert Howell, co-owner of Howell Appraisal Co.
If buyers are looking in a certain
neighborhood, they are typically looking within a specific price range, Mary Howell added.
Improvements such as room additions, garages that are converted to living rooms, even in-ground swimming pools can actually be over-improvements, Howell said.
Areas where homeowners can get the most return on their dollar are in the kitchen and bathrooms; updated countertops, faucets, mirrors, lighting, and floor coverings can actually increase a home’s value, especially in homes that can be considered starter homes, Foster said.
“A lot of times, for someone purchasing their first home, discretionary money is limited,” Foster said.

Appraisal time
At the time of an appraisal, much of the work is already done, but owners can prepare by tidying up the house and having information such as a property’s legal description, on hand.
Legal descriptions can be obtained from the court house, Foster said.
If a home has outlying areas, a survey of the property can be helpful, Howell said.
In suburban areas, an appraiser may ask where septic tanks and lateral fields are located, and it’s always good to know what school district a house is located in, Foster said.
And the little things help. The home’s condition should be similar to that of a house that is being shown, Foster said.
“It helps if the house is neat, clean, the lights are on, and the blinds are open,” Foster said.