Appraisal strategies

If you're evaluating real estate in a trust, refinancing, considering a sale, or need to know the value of your home for other purposes, an appraisal is in your future.

To ensure the appraisal goes smoothly and your property is valued fairly, you'll want to do a bit of preparation.

Depending on the situation and your level of motivation, the amount of work it will take to get ready for the valuation will vary, but it's better to exercise what control you can over the process to obtain the best outcome.

Here are a few strategies to consider:

• Provide the appraiser with comps but be respectful. Identifying properties that are 'comparable' to yours in terms of condition, location, and amenities will help you asses the value.

• Simply note the address and share it with the appraiser. The less you push, the better. The appraiser may or may not consider your suggested comps, but it can help. It may also allow you to highlight some of the features and improvements of your property and how they support a strong valuation.

• Valuing homes isn't a glamorous position, so make the appraiser's job easier by cleaning up clutter and making it convenient to access every room and take measurements. Aggravating your appraiser won't help your case, and they may not be as generous with their valuation, particularly if they're distracted or impeded during the process.

Is it necessary to invest money in repairs and upgrades?

If you have the resources and time, and it fits the situation, making improvements will increase value. However, ensure the repairs and upgrades you pursue carry the greatest perceived (and actual) value in the local market. Ironically, the appraiser is the most qualified person to make that determination, so it may be beneficial to consult one before putting in any money.

On a related note, don't bother with 'lipstick' improvements. While helpful for buyer viewings, quick cosmetic improvements are generally transparent to a keen appraiser and won't substantively affect value. The best thing to do is clean up and be open about the home's condition.

Every appraiser has their perspective on the market and strength in a particular region. If you have the option of selecting the appraiser, look for one that specializes in your property type and lives in or focuses their work in your community. Every area has unique demand factors, property features, and buyer trends that the appraiser needs to understand and have experience with to value your home accurately.

If the appraiser is assigned by an appraisal management company or other organization and they're traveling from out of the area, you're entitled to inquire regarding their expertise and, if appropriate, dispute their selection.

My team and I can provide more insights on the appraisal process and getting prepared. We're also here to help you estimate the value of your home and find suitable comparables. -Henry