3 Things You Can Do to Get Max Value From Your Appraiser - Real Estate in Aspen, CO Homes for Sale & Properties (2024)

FAQs

How do you get the highest value on an appraisal? ›

Options to maximize your home's appraisal value can include bolstering the property's curb appeal, documenting home upgrades, making minor repairs, deep cleaning the home and doing your own comparison analysis. It's also important to accept what you can't control.

The approaches to value are: Sales Comparison (or Market Data) Approach; Cost Approach; and Income Approach.

If an appraisal comes back lower then you have options. You can negotiate with the seller to reduce the price or pay more on your down payment. In turn, you wouldn't need to borrow as much.

What negatively affects a home appraisal? One of the big things that can have a negative affect is the age and condition of the home's systems (HVAC, plumbing) and appliances. If the local market is declining, that'll also hurt your home's appraised value.

Definitions of highest and best use

The Appraisal Institute defines highest and best use as follows: The reasonably probable and legal use of vacant land or an improved property that is physically possible, appropriately supported, financially feasible, and that results in the highest value.

Yes, the appraiser will look under your sinks to ensure there isn't any water damage or problems hiding. No need to clear out any under-sink storage but do make sure it is clean and accessible. If there is no damage, this won't harm your home appraisal.

Comprehensive details, clear visual aids, and explicit documentation of changes are key to securing an appraisal report that accurately reflects the property's future worth.

What do appraisers use to determine value? ›

If the property is a resale (not new construction), the appraiser will use the sales comparison approach to determine value. The appraiser looks at comparable sales, usually over the past 90 days. The appraiser also considers neighborhood characteristics, housing trends, and current market conditions.

Types Of Valuation Methods. Three main types of valuation methods are commonly used for establishing the economic value of businesses: market, cost, and income; each method has advantages and drawbacks. In the following sections, we'll explain each of these valuation methods and the situations to which each is suited.

First impressions are everything.

They will calculate its worth based on its size, condition, location, renovations and more. Even though appraisers are supposed to be objective, they are still human. Make sure your home is clean inside and out. Mow the lawn, discard those dead plants, remove clutter, mop the floors.

When they see something that looks nice and looks clean and presents well, they'll have a better impression of the property. But that won't affect the appraisal value,” says Donald Boucher, president of the appraisal firm Boucher & Boucher in Washington, DC, and an appraiser with over 40 years of experience.

If buyers are few and far between when you list your home, there's a chance the market value will be lower than the appraised value. On the other hand, if you're seeing a ton of interest in your home from multiple buyers, you may find that the market value is higher than the appraisal value.

A higher appraisal essentially hints that the buyers might have snagged a sweeter deal than they thought, paying less than what other similar homes in the neighborhood are going for. On the flip side, if the appraisal falls short of the offer, the ripple effects are more pronounced.

If a home is appraised to be higher than the asking price, the lender will only issue a mortgage for the appraisal amount. This leaves the borrower to either cover the remaining cost on their own or return to searching for a home with a listed price that matches the appraised value.