Refinancing your home involves several steps, but the property appraisal may be the most crucial.
When a real estate appraiser provides an opinion on the value of your house, it can make — or break — your ability to qualify for the new loan you want.
A property appraisal is an assessment of your home’s market value based on several factors, including its size, age, condition, location, amenities, and previous sales prices according to the Appraisal Institute. Professional appraisers have specialized training and experience in property valuation.
Because market conditions change rapidly and property values in your neighborhood might be much higher (or lower) than when you bought your home, you need to have your property’s value appraised when refinancing. Any upgrades or improvements you’ve made won’t be reflected in your original appraisal, so be sure to have a running list that you can provide. If you’ve let your home fall into disrepair, though, an appraiser will take note of that, too.
How to increase your property’s value
Some of these suggestions might take some time and elbow grease on your part, the results (and value-added to your home) will likely pay off in the end. Here are four suggested projects that will give the best bang for your buck:
Refresh paint, remove clutter. The quickest, easiest way to increase your chances of a higher appraisal is to paint. This will bring new life to tired-looking rooms. A cluttered home feels very small and is much more difficult to keep clean.
Replace worn carpet and flooring. This is an upgrade that will stand out to property appraisers. New carpet or flooring that mimics the look of hardwood can add several thousand dollars in value to your home.
Update elements of the kitchen and bathrooms. Touching up these rooms are a great way to get a return on your investment. Keeping them clean certainly goes a long way! A few updates will earn value adjustments in your favor.
Create curb appeal. A property appraiser isn’t going to spend much time judging your home’s exterior, but a good first impression doesn’t hurt. Cleaning up flower beds and refreshing the mulch are inexpensive, low-effort ways to make your home more appealing
These options will give you the best chance of scoring a higher appraisal value that can help you get the mortgage refinance that you're looking for.
Please reach out if you have questions or would like to schedule a time to discuss your options - (936) 776-5161.