Are you in the process of refinancing or selling your place? If so, you’re probably going to need an appraisal. I know, not the most exciting step. But appraisals are crucial for ensuring you get fair market value, so it pays to be prepared.

The good news is you can make the appraisal process way smoother by getting your records organized and your home looking its best. That’s what this guide is all about—how to prep yourself and your house to breeze through the appraisal. The more you have ducks in a row, the less stressful this step will be. Let’s dive in.

Why Appraisals Matter

Before jumping into the prep work, let’s review why appraisals are mandatory for most real estate deals.

Lenders need to protect their investment, so they require an objective appraisal to confirm the property is valuable enough to approve the loan amount. Appraisals prevent lenders from doling out more than what the home is truly worth.

For buyers, appraisals provide assurance they aren’t overpaying. If the appraisal comes under the negotiated price, the buyer can request the seller lower the price accordingly.

On the seller side, you want an appraisal verifying you’re getting every dollar the home is worth. If the appraisal exceeds the sale price, it clues you in that more money may be left on the table.

Bottom line, appraisals keep transactions fair. A smooth appraisal gives peace of mind you’re getting the full value for your property.

Key Records to Have Ready 

Appraisers will gather a variety of information to determine the value of your home. Having the following documents organized ahead of time will make the process easier on you and the appraiser:

Property Records

– Deed

– Tax assessments 

– Plot map/survey

– Property survey 

– Any easements 

Purchase and Loan Records

– Closing Disclosure statement 

– Loan records

– Receipts for any improvements or upgrades

Home Details

– Floor plans

– List of repairs or remodels

– Warranties and instructions for appliances/systems

Utilities and Other Costs 

– Utility bills

– HOA fees

– Mello Roos details

– Other community facilities fees

Insurance Records

– Declaration page showing dwelling coverage

Gather these documents ahead of the appraisal so you can quickly provide details the appraiser needs. Digital copies are fine, just have them ready to email or print.

Financial Documents

Your lender will order the appraisal, but you want to provide the appraiser a full picture of the financials related to your home. 

Having purchase and loan details handy helps the appraiser understand the home’s financing and sales history. Details like your original purchase price, down payment amount, interest rate and loan terms give context about how you arrived at today’s value. 

Refinance appraisals require this information even more, since the appraiser needs to determine how much the property value has changed since you originally bought it.

For purchases, offer details like the purchase contract, proposals, listing price history and any renegotiations. 

Providing this financial data upfront avoids delays from the appraiser having to request these records from other parties.

Home Improvement Records 

Major upgrades, remodels and repairs can significantly impact your home’s value. So home improvement records are important for the appraiser to review. 

Details to have ready include:

– Remodeling permits

– Contractor invoices 

– Receipts for materials 

– Warranties for new systems/appliances

Even smaller upgrades like replacing the roof or renovating the kitchen influence value. Having written details helps the appraiser account for improvements without relying solely on visual inspection.

For DIY projects, list the types of upgrades you completed yourself and the associated costs in materials and labor time. 

 Tip: Create a spreadsheet listing all home improvements, costs and dates completed. Highlight the major remodels. Having organized remodel details in one document makes it easy for the appraiser to review.

Comparable Property Information 

Real estate appraisals rely heavily on comparing your home to recent sales of similar properties in your neighborhood. This is why comparable sales, or “comps,” are so important.

To prepare, research recently sold homes in your community that are similar to yours in size, style, age and condition. Drive by and take photos of these comparable properties. Make notes on similarities and differences compared to your home. 

Compile a list of at least 5-10 comparable properties and sales details including:

– Address

– Sale price 

– Square footage  

– Number of bedrooms/bathrooms

– Property age

– Condition

– Upgrades

– Date sold

– Days on market

Tip: Check real estate websites and talk to your agent about recent comparable sales. The more comps the appraiser can review, the better.

Having your own comp research ready shows you are serious about getting the most accurate appraisal. It gives the appraiser a headstart on valuating your home.

Neighborhood and Location Details

Appraisals also factor in the value of your surrounding neighborhood and location. 

Make sure you gather info on:

Neighborhood amenities – schools, parks, pools, trails, clubhouses, etc. 

Commercial conveniences – proximity to shops, restaurants, entertainment.

Transportation – highways, public transit, bike lanes, etc. 

Crime rates – obtain local police reports.

Future area developments – new construction, businesses coming in, etc. 

Local home values – average sales prices, trends.

Community demographics – type of residents, owner occupancy percentages, etc.

Area home demand – number of days homes are on market. 

School district ratings – test scores, district rankings.

Having these neighborhood details handy helps the appraiser accurately evaluate the marketability and value of your location. 

Drive your neighborhood and adjoining areas beforehand to refresh yourself on the community’s amenities, developments, and attractions.

Preparing a Home Tour 

The appraiser will perform a walkthrough of your home’s interior and exterior. Preparing for an organized, uncluttered home tour ensures the appraiser can make accurate assessments.

Declutter – Remove excess furnishings and decor. Appraisers need to see the home structure and layout, not just your stuff.

Deep clean – Make sure every room is vacuumed, dusted, and spotless. A clean house looks better cared for.

Repair flaws – Fix cracked tiles, leaky faucets, damaged walls, broken appliances, etc. Covering flaws can inflate the appraisal.

Let it shine – Clean windows inside and out to maximize natural light. Replace burnt out light bulbs.

Neutralize scents – Eliminate strong cooking, pet and smoke odors that may turn off appraisers. Air out rooms.

Organize clutter – Hide kid toys, pet supplies, piles of mail/paperwork, etc. Out of sight helps rooms look larger. 

Open up – Open blinds/curtains and turn on all lights to make rooms bright and welcoming.

Curb appeal – Mow, rake, weed and edge the yard. Sweep walkways and porches. Spruce up landscaping. Fresh exterior paint if needed. 

Taking time to clean and prepare your home helps the appraiser focus on properly valuing the property – not poor maintenance and declining condition.

Declutter and Clean Your Home

One of the best things you can do to prepare for a smooth appraisal is thoroughly decluttering and deep cleaning your home. This may seem like common sense, but you would be surprised how many sellers neglect this important step.

Appraisers need to envision the functionality of the home layout and condition of the property. Excess clutter and messiness can obscure their ability to properly assess your home. It also sends the message you haven’t cared for your home as well as the competition.

Aim to clear out at least 50% of your belongings before the appraisal visit. Remove stacks of magazines, unnecessary furniture, knick knacks, piles of toys and other non-essentials. You want to open up floor space and walking paths in every room.

Next comes an intensive whole house cleaning. Appraisers will look in cabinets, behind appliances, under sinks – everywhere for signs of damage or neglect.

Scrub bathrooms, kitchen floors and appliances until they gleam. Steam clean carpets. Dust ceiling fans and light fixtures. Wipe down baseboards and windowsills. Make sure the home interior sparkles from top to bottom.

Curb appeal matters too. Keep the yard recently mowed and neatly edged. Sweep debris from porches, walkways and the driveway. Plant fresh flowers by the entry. Remove any exterior clutter or unsightly items.

Taking the time to thoroughly clean and prepare your home removes distractions so the appraiser can focus on properly determining the property’s value.

Be Flexible on Timing

Another tip is to be flexible on timing when scheduling the appraisal. Avoid requesting a rush job unless truly necessary.

Appraisers have busy schedules shuffling between many properties. Give them ample time to review your home and records without feeling rushed. This helps them do their most accurate work.

Also prepare for the appointment to take 1-2 hours or more as they fully assess your home and grounds. Avoid scheduling showings or move out cleanings on the same day that could conflict.

If repairs are planned before closing, schedule the appraisal after work is complete, so the appraiser sees the home in its best condition. 

You want the appraiser’s full attention on evaluating your properly prepared home. Being flexible on timing and not constraining their inspection helps in getting a complete appraisal.

Communicate with Your Appraiser 

Many homeowners feel like bystanders during the appraisal process since lenders order the appraisal. However, strong communication with your assigned appraiser is key for a smooth process.

A few days before the scheduled visit, reach out to the appraiser by phone or email. Provide all the information you compiled on your home’s records, improvements, neighborhood, comps, etc. This gives them a head start.

Verify appointment time/date and ask if they need any other information before coming onsite. Make sure to supply your cell phone so you can be reached when they arrive. 

Answer any additional questions promptly and make yourself available for follow ups or a second visit if needed.

Being proactive communicating with the appraiser reduces delays and keeps the inspection on track to meet deadlines. The more you engage, the better the outcome.

Understand the Appraisal Process

While you can take steps to prepare your home, it helps to understand what the appraiser is looking for during their inspection. This takes some of the mystery out of the process so you know what to expect.

The appraiser has a detailed checklist they work through assessing your home including:

– Taking photos of the exterior from all sides, plus interior rooms

– Drawing a floorplan if one is not available  

– Measuring the exterior square footage

– Documenting construction materials, age and condition of the roof, HVAC, plumbing, electric, foundation etc.

– Looking for any structural problems, cracks, leaks, rot, drainage issues, etc. 

– Assessing any upgrades like remodels or repairs

– Documenting room dimensions and layout

– Verifying bedroom and bathroom counts

– Noting property amenities like decks, pools, landscaping, garages, etc.

Appraisers go through extensive training on accurately evaluating home values based on inspection findings. While it can feel intrusive to have a stranger scrutinizing your home, remember they are professionals working to establish fair market value. 

Understanding their process helps set expectations for what will happen during the visit.

Don’t Try to Influence the Appraiser

A major mistake homeowners sometimes make is trying to influence the appraiser with comments about how much their home is worth, how much they need from the sale, etc. 

Appraisers take their job seriously and are bound by a professional code of ethics. Any attempt to sway their judgment could be construed as a bribe which is illegal. 

Your best bet is to let the appraiser make an unbiased assessment based on their expertise. Attempts to “schmooze” the appraiser often backfire or make them question provided data.

Stick to simply providing records and access needed to help them reach an objective valuation. Then step back and let them do their job without interference.

Review the Appraisal Carefully

A few days after the inspection, you will receive a copy of the completed appraisal from your lender. Review this document carefully rather than just looking at the final value amount.

Check that the report contains no factual errors on details about your home like:

– Square footage

– Number of bedrooms/bathrooms

– Amenities

Also verify the list of comps they used seem appropriate and the adjustments made to your home value based on differences are reasonable.

Look for anything overlooked or under/over valued. This is your chance to dispute any glaring flaws in the appraisal while there is still time before closing.

If you feel there are significant errors, discuss concerns with your lender and real estate agent right away. They can advise if asking for revisions or even a new appraisal is warranted.

Paying attention to the details now prevents being stuck with an erroneous appraisal value on what will be likely your largest asset.

Conclusion

The appraisal process is a critical step that protects your interests during a real estate transaction. While appraisals can create stress, being organized and prepared helps streamline this important valuation. 

Pull together key home records, make repairs, deeply clean your home, and communicate openly with the appraiser. Understand the inspection process so you know what to expect. Resist any urge to sway the appraiser’s judgment of your home’s value.

Review the completed appraisal thoroughly before accepting the value. Ask questions and dispute any obvious errors backed by your documentation.

With some effort on the front end, your appraisal can go smoothly and accurately. This provides peace of mind that your home investment receives a fair market value assessment.