Appraisal Mistakes to Avoid
The appraisal is an inspection done by a professional appraiser which confirms the current market value of the home. It will be one of the first steps in the closing process.
Sometimes appraisals can be inaccurate. If you feel that your appraiser has made a mistake, you can either present a factual case to the current appraiser or get a second opinion. However, there are mistakes you can avoid that have the potential derail the appraisal process, or even cause an inaccurate report.
Mistakes to Avoid as the Seller
Forgetting to Tidy Up
Clutter could make it more difficult for the appraiser to see the quality of what is there. Take time to clean up and organize before the appraisal, and you’ll be more likely to see the value of those items reflected in the report.
Last Minute Repairs and Upgrades
Some homeowners may feel pressure to repair or upgrade their homes to increase the home value for cheap. However, unless you’re experienced and can perform quality work, this can actually lower the value of the home, and may even require a contractor to re-do the work.
Hiding Minor Problems
Appraisers are smart and can usually see right through attempts to cover up minor home issues, such as stained carpet or wall damage. In some cases, minor wear and tear on the home won’t affect the value.
It’s better to be honest about whatever is broken than try to cover up something small. If the appraiser knows you’re covering up one thing, they may start to look deeper for potential issues.
Upgrading Beyond Market Needs
Some homeowners attempt to inflate their home value by upgrading the home in various ways. If done correctly, this can be a smart decision. On the other hand, there’s always a chance it could be a waste of money if not done properly.
Upgrades need to be consistent with the marketplace and with other local properties; otherwise, they are unlikely to add any value for a prospective buyer. Over-the-top or bizarre upgrades may even discourage buyers from offering on the home because it makes the home stand out in a negative way.
Not Having Functional Smoke & CO Detectors
This may seem like a minor issue, but lenders see transactions delayed every day because neither of these things works or are absent altogether. If the appraisal shows either item as being deficient, the appraiser will have to re-inspect at a later date to establish they are in working order.
Making the Right Move as the Borrower
At PRM, we want our clients to be in the best hands possible when it comes to homeownership. This is why we have an in-house appraisal team to help meet this need in the states of Oregon, Idaho, and Washington. So, what does this mean for you?
These appraisers are actual employees of PRM, which means they are not under contract to work with several lenders at the same time. As a result, our appraisers are dedicated to and readily available to the clients within PRM.
Consistency, Knowledge, & Experience
Many of these appraisers have worked with PRM over the past several years, as contracted AMC employees. They’ve provided consistent results, and have extensive knowledge of the areas they are appraising. With years of experience, you can trust our appraisers to deliver the best results.
Potential Cost Reduction
Aside from our in-house appraisal services, some of our client’s transactions may qualify for an appraisal waiver, or Property Inspection Waiver (PIW). This would remove the appraisal requirement on the transaction, which could provide significant savings on your closing costs.
PIWs are transaction-specific, and require the loan to be run through our Automated Underwriting System (AUS) before we will know if your specific transaction is eligible for a PIW or not.
Contact a Mortgage Advisor today for more information using the form below.
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