An appraisal report is an essential document when buying or selling a home. However, it can also be a source of frustration and confusion if you're not careful. Here are some pitfalls you can avoid to ensure the most accurate appraisal report possible.
Choosing the wrong appraiser
The choice of appraiser is crucial. Don't just go for the cheapest option, but choose someone with knowledge of the local market and good references. The wrong choice can lead to an unreliable report, and that can cost you dearly.
Insufficient preparation
An appraiser looks at the condition of the home, so it is in your best interest to make minor repairs and clean up the home. After all, a home in poor condition can lead to a lower appraisal value. For that matter, an overvaluation caused by a "polished" home can also cause problems later in the sale.
Not being present at the appraisal
Although it is not mandatory, it is wise to be present during the appraisal. That way you can answer any questions the appraiser may have directly and avoid misunderstandings.
Overlooking the environment
The value of a home is determined not only by the condition of the home itself, but also by its surroundings. Are there plans for major changes in the neighborhood, such as construction projects? This can affect the value. Make sure you are aware of this and discuss it with the appraiser.
Reliance on a parent report
The real estate market is always changing. So an appraisal report from a few years ago is usually no longer current. For most financial decisions, such as taking out a mortgage, you need a recent report.
Getting a second opinion
If you have doubts about the outcome of the appraisal report, it may be helpful to get a second opinion from another appraiser. While this will incur additional costs, it may actually save you money in the long run.
A valuation report is an important, but sometimes complicated document. By being aware of potential pitfalls and acting carefully, you can avoid many problems. A good report is the key to a successful transaction, so it's worth paying adequate attention to it.
