Posted on: 27th Aug, 2007 06:36 am
Now obviously when you have scheduled and an appraiser to look over your house, its a good idea to tidy it up so the house looks more presentable when they get there. I've also heard that you have to ask them if they want a drink like a soda or water. By doing this, they may increase the value of the home. Is this true or is it just hogwash?
Appraiser ( at least any good one ) is a proffesional third party observer. He cant and should not increase the value of your home over what it is worth whether you get him a drink or not. Whether or not your place is tidy has nothing to do with the structural integrity of your house and therefore has no effect on the house value.
An appraiser prepears a comparative report of your house as it compares to other simmilar properties sold recently in your area. If the appraiser is any good he'll attempt to find the most value in your home but it might be a good idea to point out to any structural renovations you have recently made to your home or what makes your home better then the neighbors.
Things that add value (extra bedrooms, bathrooms, finished basement, hardwood floor, deck, fireplace, jacuzi, bigger size lot, square footage, central air, fireplaces, new roof, patio, 3 season porch)
things that dont affect value or dont have large effect -( new paint, new carpet, retiled bathroom, wiring the house, whether or not its clean, unfinished rooms in the basement, new paint on the house ect.)
Things that bring the value down ( any structural damage, broken beams, water damage, unfinished construction projects, bad landscaping )
Try to do an appraisal when you are not in the middle of any major construction projects but rather before or after one as the appraiser will have to deduct the approximate cost of the project from your house value.
You might want to point out to the appraiser any simmilar properties in your neighbourhood that sold recently if they sold in the price range you are looking to have your house appraised in.
As far as getting the guy/gal a drink that is up to you but dont expect the appraiser to put his licence on the line for a drink.
An appraiser prepears a comparative report of your house as it compares to other simmilar properties sold recently in your area. If the appraiser is any good he'll attempt to find the most value in your home but it might be a good idea to point out to any structural renovations you have recently made to your home or what makes your home better then the neighbors.
Things that add value (extra bedrooms, bathrooms, finished basement, hardwood floor, deck, fireplace, jacuzi, bigger size lot, square footage, central air, fireplaces, new roof, patio, 3 season porch)
things that dont affect value or dont have large effect -( new paint, new carpet, retiled bathroom, wiring the house, whether or not its clean, unfinished rooms in the basement, new paint on the house ect.)
Things that bring the value down ( any structural damage, broken beams, water damage, unfinished construction projects, bad landscaping )
Try to do an appraisal when you are not in the middle of any major construction projects but rather before or after one as the appraiser will have to deduct the approximate cost of the project from your house value.
You might want to point out to the appraiser any simmilar properties in your neighbourhood that sold recently if they sold in the price range you are looking to have your house appraised in.
As far as getting the guy/gal a drink that is up to you but dont expect the appraiser to put his licence on the line for a drink.
"As far as getting the guy/gal a drink that is up to you but dont expect the appraiser to put his licence on the line for a drink."
Well said Eugene.
"I've also heard that you have to ask them if they want a drink like a soda or water. By doing this, they may increase the value of the home. Is this true or is it just hogwash?"
Most appraisers are trustworthy and won't agree to do any such thing. But we do hear about property values being appraised falsely to get a higher loan amount. Those are frauds and you don't want be to be part of such frauds.
An appraiser will do his job correctly and that we should be expecting from him. Even if any appraiser offers you any such thing you should always avoid that person and look for someone else.
Well said Eugene.
"I've also heard that you have to ask them if they want a drink like a soda or water. By doing this, they may increase the value of the home. Is this true or is it just hogwash?"
Most appraisers are trustworthy and won't agree to do any such thing. But we do hear about property values being appraised falsely to get a higher loan amount. Those are frauds and you don't want be to be part of such frauds.
An appraiser will do his job correctly and that we should be expecting from him. Even if any appraiser offers you any such thing you should always avoid that person and look for someone else.
"I've also heard that you have to ask them if they want a drink like a soda or water. By doing this, they may increase the value of the home. Is this true or is it just hogwash?"
Most appraisers won't agree to any such thing.
Most appraisers won't agree to any such thing.
Hi Wildstorm,
If you get the appraiser a drink of soda or water, that will not have any impact on the value of your property. Evolovik has clearly given information on the things that adds value to your house and that does not affect the property value. You should stay away from such type of appraiser who increases the property value in return of a drink.
If you get the appraiser a drink of soda or water, that will not have any impact on the value of your property. Evolovik has clearly given information on the things that adds value to your house and that does not affect the property value. You should stay away from such type of appraiser who increases the property value in return of a drink.
I didn't think you had to cater for them. My friend got their house appraised recently and it was appraised slightly lower then what they thought. One of her co-workers said your supposed to ask if they want something to drink. I thought maybe there was some truth to that but apparently there isn't so thats cool.
:)
I've never increased someones house value because they gave me water.
I've never increased someones house value because they gave me water.
"Appraiser ( at least any good one ) is a proffesional third party observer. He cant and should not increase the value of your home over what it is worth whether you get him a drink or not. Whether or not your place is tidy has nothing to do with the structural integrity of your house and therefore has no effect on the house value. "
Yes any ethical appraiser isn't going to raise the value based on what soft drink you offer, even the unethical few wont do it unless you offer them much more than a soda :)
"An appraiser prepears a comparative report of your house as it compares to other simmilar properties sold recently in your area. If the appraiser is any good he'll attempt to find the most value in your home but it might be a good idea to point out to any structural renovations you have recently made to your home or what makes your home better then the neighbors. "
A 'good' appraiser isn't trying to find the most value in your house. The appraiser is trying to find what the most likely price the home would sell for from a typical buyer if the lender wants market value.
"Things that add value (extra bedrooms, bathrooms, finished basement, hardwood floor, deck, fireplace, jacuzi, bigger size lot, square footage, central air, fireplaces, new roof, patio, 3 season porch)
things that dont affect value or dont have large effect -( new paint, new carpet, retiled bathroom, wiring the house, whether or not its clean, unfinished rooms in the basement, new paint on the house ect.)
Things that bring the value down ( any structural damage, broken beams, water damage, unfinished construction projects, bad landscaping ) "
I see what you are saying, but I'd also mention many of the things that add value might end up costing you much more to have done then the appraiser will give value on. General key for any improvement is conformity. If your neighbors have it and you don't its likely a safe investment. If all of your neighbors have lamitate flooring and you want to custom install marble flooring, you are likely going to be an over improvment for the neighborhood and will not see much of your money back on the investment. That's what we call 'value in use', where the value is to the current owner only.
I'd actually disagree with the new paint and carpet statment. A lot of the time fresh paint can make a world of difference, especially if its an older house that really needed it. It could be the difference between the appraiser considering your house Low average to Average. Again the general rule here is if many of your neighbors have it, its likely a safe investment. Try not to be the worst or the best house in your area.
About keeping the house clean. When we go out to appraise a house the appraiser will try to vision the house as empty as if all your personal stuff is not there. That said, it can be tough for anyone to see through the clutter. I recommend to clients that they at least clean up a bit, vaccum so we can see the true condition of the carpet and if your landscaping is out of control have somone clean that up as well. This doesn't add direct value, but will help the appraiser see through the clutter and hopefully might draw a higher rating on overall condition of the property.
Yes any ethical appraiser isn't going to raise the value based on what soft drink you offer, even the unethical few wont do it unless you offer them much more than a soda :)
"An appraiser prepears a comparative report of your house as it compares to other simmilar properties sold recently in your area. If the appraiser is any good he'll attempt to find the most value in your home but it might be a good idea to point out to any structural renovations you have recently made to your home or what makes your home better then the neighbors. "
A 'good' appraiser isn't trying to find the most value in your house. The appraiser is trying to find what the most likely price the home would sell for from a typical buyer if the lender wants market value.
"Things that add value (extra bedrooms, bathrooms, finished basement, hardwood floor, deck, fireplace, jacuzi, bigger size lot, square footage, central air, fireplaces, new roof, patio, 3 season porch)
things that dont affect value or dont have large effect -( new paint, new carpet, retiled bathroom, wiring the house, whether or not its clean, unfinished rooms in the basement, new paint on the house ect.)
Things that bring the value down ( any structural damage, broken beams, water damage, unfinished construction projects, bad landscaping ) "
I see what you are saying, but I'd also mention many of the things that add value might end up costing you much more to have done then the appraiser will give value on. General key for any improvement is conformity. If your neighbors have it and you don't its likely a safe investment. If all of your neighbors have lamitate flooring and you want to custom install marble flooring, you are likely going to be an over improvment for the neighborhood and will not see much of your money back on the investment. That's what we call 'value in use', where the value is to the current owner only.
I'd actually disagree with the new paint and carpet statment. A lot of the time fresh paint can make a world of difference, especially if its an older house that really needed it. It could be the difference between the appraiser considering your house Low average to Average. Again the general rule here is if many of your neighbors have it, its likely a safe investment. Try not to be the worst or the best house in your area.
About keeping the house clean. When we go out to appraise a house the appraiser will try to vision the house as empty as if all your personal stuff is not there. That said, it can be tough for anyone to see through the clutter. I recommend to clients that they at least clean up a bit, vaccum so we can see the true condition of the carpet and if your landscaping is out of control have somone clean that up as well. This doesn't add direct value, but will help the appraiser see through the clutter and hopefully might draw a higher rating on overall condition of the property.
Great post Mike. You explained all the things as they actually occur in detail. :)
That's some great points there Evolovik and Mike. even I was not aware of the paint issue and hardly knew that it was important to keep the house clean too so that the appraisal could be carried out well. And, yes, if a professional, be it an appraiser or a lender is dedicated towards his work, then whether it's a glass of soda or whenever ethics becomes important to him above all.
Mike,
You have raised some important points. It will certainly help any home owner before doing an appraisal.
You have raised some important points. It will certainly help any home owner before doing an appraisal.
Glad I can help. :)