Many Homeowners have a question in their minds on how do they prepare for a real estate appraisal on their character. The appraisal in many situations is the most import part of the buying and selling course of action which allows the transaction between buyer, seller, real estate agent and mortgage lender or bank to go smoothly.
Most homes that are sold or refinanced are appraised in ” as is” condition and not unprotected to any minor cosmetic repairs. The appraiser will appraiser the character exactly the way the character is at the time of the inspection. Minor repairs or any work which has not been completed will be taken into consideration in the final valuation course of action. Any work that has been contracted to be completed will not be considered, such as a new kitchen, new bath or an addition. Make sure any major repairs such as a leaking roof or a wet basement are repaired because most lenders will not lend money when these problems exist. There are special loan products for these types of problems but the lender should be informed of these problems before inspection.
The following documents will help the expedite course of action and assistance the appraiser in developing the appraisal.
* A plot plan or site map or a survey of the house and land. (is freely obtainable)
* Information of the latest buy or move of the character in the last three years
* Title policy that describes any easements or encroachments
* The Deed or Title that determines character is Fee Simple or a Leasehold and Ground Rent Payments
* Most recent real estate tax bill and legal description
* Home inspection reports, termite reports and any well and septic reports
* Any list of upgrades and major home improvements
* Current Real estate Listing Agreement and Contract and addendum
* Homeowners Association Agreement or Condominium Covenants and Fees
The appraisal course of action usually takes about 15 to 20 minutes on the interior of the dwelling and another 15 to 20 on the exterior of the character which includes taking photos and measuring the dimensions of the dwelling. Every owner is different, some similarities owners want to join the appraiser by the inspection course of action while others let the appraiser inspect the character on their own. Most appraisers do not mind either way what every the homeowner is comfortable with and as long as the home owner is obtainable for any questions the appraiser may have about the character.
Other suggestions are to make sure the attic access in open to the appraiser, access to basement or crawl space in freely obtainable and access to furnace or boiler, electric panel. The appraiser indicates that minor repairs should be corrected like missing switch or outlet covers, leaky faucets, loose or missing door knobs, any trim or moldings installed and paint any trim that is flaking or peeling.
FHA inspections require that several repairs should be completed before the inspection. Some of these repairs are hand rails to all stairs over two steps, smoke detectors and correct flaking or peeling paint on dwelling built before 1978. Attic and crawl space need to be inspected.
The above suggestions will help streamline the appraisal course of action because most home owners do not realize that the majority of the appraisal course of action takes place before and after the inspection with comparable sale and listing research and taking photos of all comparable sales and listings. The actual writing of the appraisal report, drawing sketch, installing flood maps, location maps and sending the completed report to the lender.