by CDC Consulting Services Inc.
The appraisal process is essential in property and mortgage agreements, as it can help budget for necessary or beneficial property improvements. What do you need to do to prepare for this? What can you do to make a positive influence on your home?
Appraisal involves inspecting a property to determine its market value and ensure there are no hidden issues that could cost more. The appraisal reports provide a professional opinion on the property, so they help make sound financial decisions.
With all the information collected, property owners can make informed negotiations that work in their best interests. Whether you’re a property owner or lender, taking time to understand the appraisal process will ensure better outcomes.
Besides repairing minor things like leaky faucets and missing door handles and trim, there are a few things you should prepare for the Appraiser:
1. Information on the latest property purchase
Also, include a title policy describing encroachments or easements in this pile! Title insurance protects the homeowner against challenges to the ownership or problems related to the home’s title.
2. Written property agreements
Beyond the basics, such as a maintenance agreement for a shared driveway, a plot plan or survey of the house and land would help your Appraiser if readily available. Ensure all home areas are accessible, especially the attic and crawl space.
A copy of the current listing agreement, broker’s data sheet, and Purchase Agreement if a sale is “pending” is also something an Appraiser may require. If applicable, include a list of personal property to be sold with the home. Information on “Homeowners Associations” or condominium covenants and fees would be helpful, too.
Your most recent real estate tax bill and legal property description, home inspection reports or other recent reports for termites, EIFS (synthetic stucco) wall systems, septic systems and wells can help the Appraiser understand your home’s value.
4. Brag Sheet
Gather the permit confirmation, the installation date and the cost for all major improvements or upgrades. For example, include central air conditioning or roof repairs on your brag sheet.
Once your Appraiser has arrived, you only need to accompany them on some parts of the site inspection. Still, you should be available to answer questions about your property and be willing to point out any “proposed” home improvements if the property is to be appraised “As Complete.”
Appraisers see hundreds of homes a year and will look past most clutter, but they’re human beings too! A good impression can translate into a higher home value.
Looking for advice? Speak to one of our experienced real estate agents! They can guide you through the process.
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About the Contributor
CDC Consulting Services Inc. was established in 1996 to provide superior real estate appraisal services to our clients. CDC Consulting Services Inc. is an independent firm with several Strategic Alliances, providing a full range of valuation services throughout Western Canada. We offer residential, commercial, assessment appeals, insurance appraisals, agricultural, personal property/machinery and equipment and business valuation services.
Published: January 4, 2021
Last Updated: January 17, 2023