You want to refinance your mortgage. After building a home for yourself and your family, you think it’s time to refinance. What you’re really worried about is your home’s appraisal value.
You’re thinking about how you might not end up getting the appraisal value you want. But if things don’t go the way you wanted them to, you also don’t want to settle for the not-so-great loan options.
This isn’t the only option out there. Increasing your home’s value isn’t as black and white as you think. Appraisers are humans, after all. Though they have to be objective about appraising, a well-maintained home will surely leave an impression on them. There are still some things you can do to help increase your home’s appraisal value.
Paying off home loans and replacing them with a new one is what refinancing a mortgage entails. Before going through with that, your home needs to be appraised. But first, let’s define what a home appraisal is.
What Is a Home Appraisal?
A home appraisal is a professional’s unbiased opinion of your home’s value. Appraisals are virtually always used in purchase-and-sale transactions and in refinance transactions. In your case, you want to refinance your mortgage. By having your home appraised by a professional, lenders are assured that the amount you’re planning to borrow is justified. The money you’re going to be borrowing isn’t more than what your home is worth.
However, for your loan to be accepted, the home must appraise at or above the amount you want to refinance. Now that we have that out of the way, here are some methods you can use to amp up the value of your home.
Unclutter and Tidy Up
Apparently, beauty adds value, but so does cleanliness. Nobody should judge a book by its cover. But for your house, being judged positively by its cover possibly means added value. According to the Appraisal Institute, landscaping contributes to the value of a property.
From the front lawn to the patio, there’s so much room for improvement. You could add some flower beds and other plants to your lawn or remove the clutter you’ve been putting off in the backyard. There’s a lot of improvements you can do to the exterior of your home. But most importantly, don’t forget to clean up. Not just the clutter, but the dead grass and weeds here and there too. Cleaning makes a huge difference, and most importantly, you don’t have to spend on it too.
Get Renovations and Home Improvements Done
Do you not know where to start?
Stacy Sirmans, a professor of real estate at Florida State University, shared in an article that the best places to start renovations are in your kitchen and bathrooms. But these don’t need to be bigger than they really need to be. Inspect closely if there are any loose cupboard hinges or broken tiles that need some fixing up. These repairs and renovations might be much-needed anyway. You were probably putting them off.
When picking out colors for a painting job, be sure to go for neutral yet classy colors. Avoid distinct colors that may look offbeat from the overall aesthetic of your home. Choose safe colors that would suit just about anybody’s taste.
Document the Before and After
Before making any renovations, be sure to snap some pictures so that when you bring up the home improvements you made to the appraiser, you have some compelling evidence. Being able to put both before and after pictures together is impactful to your case. Go ahead and show them the before and after of your wooden floors. Show off your hard work, too.
Flaunt Your Location
The closer your home is situated to the economic center of your location, the better. Take note of accessible facilities such as schools, markets, malls, hospitals, etc. It’s a great point to bring up. Be sure to mention this over your discussion with the appraiser, even if it might seem obvious to point out. It supports your case.
Nobody can go wrong by choosing to keep their home in good shape. It doesn’t just benefit its value, but it benefits everyone at home too. Treating it as though it already holds the value you want it to have could be the secret ingredient.
An appraiser will always be drawn to a home that’s clearly been well-maintained. But at the end of the day, appraisers have to remain objective. Before the meeting, do everything you can to prepare your home. Leave no stone unturned.