Getting the Max Out of Your Appraisal

By Mallory Nicholson

A lot of house sellers relax once they accept on offer. They think the deal is done, but in reality, a sale is never out of danger of being cancelled until the day escrow closes.

This is no time to celebrate - it's time to play ball.

Wishy-washy buyers, their families, inspectors, lenders, and appraisers all have the ability to affect your sale at any point. As a smart seller, you need to play offensively - thinking ahead to make sure the deal runs smoothly at every point.
One area that's a little tricky these days are appraisals.

In the past, sellers hadn't paid too much attention to appraisers or appraisals. It was something ordered by lenders for lenders and unless there was a big discrepancy in the appraised value of a house versus the selling price, there was no cause for concern. Generally, everyone was happy and went on with the sale, until now.

Put The Appraiser On Your Team
This market has created extra challenges and, in some cases, appraisers are having a tough time calculating house values. In some areas, a house hasn't been sold in months and the comps (sales information on recently sold houses, closest to your size and house type) appraisers use to help determine value, are few and far between.

The danger is that if the appraisal comes back below your sales price, the lender is unlikely to fund the loan and your sale can be in jeopardy.

All is not lost though. Be proactive and prepare your house for the appraiser's visit. I recently met Jacquelyn McColgan, Certified Residential Appraiser, and she had these tips to help maximize the value of your house when being appraised:

• Remove all clutter from your house and yard
• Clean all rooms, make beds, remove trash
• Finish renovations and repairs
• Fix any broken windows, doors, screens
• Make sure pools are in working order and clean
• Allow access to all sides of the house
• Allow access to all rooms in the house
• Provide a detailed list of upgrades/improvements
• Provide Mello-Roos or special taxations
• Provide information particular to condominium/co-operatives
• Home owner association (HOA) contact information
• HOA dues amount
• Management company contact information
• Information regarding special assessments (painting, roofs, paving)
• Amount of assessment plus start and finish dates

Don't make the appraiser work too hard to see your property. Clean and stage your house just like you would for a buyer showing and give her the information she needs about upgrades and renovations. This will go a long way to helping her understand and determine the value of your house.

Don't forget, you are in charge of the sale of your house. No sale is perfect, but by being proactive and making sure you're prepared for every step of the sale, it can insure that you'll make it all the way to closing without too many bumps and bruises.