Appraisals

Two days before the appraiser’s visit:

1. Fix health and safety problems first. Rickety railings and broken windows can derail your loan.

2. Tidy up. Items not attached to the house, like clothing scattered on the kid’s bedroom floor, aren’t supposed to count. But clutter obscures the structure and creates a bad impression.

3. Don’t kill yourself cleaning. You want it clean, but this isn’t a white-glove inspection. Appraisers understand homes are meant to be lived in.

4. Grasp the mindset. An appraiser will try to see your home through the eyes of a potential buyer, even if you’re only refinancing. But don’t try any tired tricks. You will not get any points from the appraiser if you have bread baking in the oven.

5. Maximize views. Remove ivy, weeds and overgrown landscaping that obscure a view. If you’ve got it, flaunt it.

6. Mow the lawn & trim the hedges. In a drive-by appraisal, the exterior is the only card in your hand.

Thinking longterm? Here’s some more tips for long-term value:

1. Keep up with general maintenance. Deferred maintenance could knock $20,000 off the value of an average home.

2. Don’t over-improve. The neighbourhood establishes the value. Very-few people are willing to spend $400k on a home in a neighbourhood of $300k homes.

3. Remodel strategically. Don’t make the mistake of putting a large picture to make use of a view of a gas station.

4. Don’t expect miracles from a single upgrade. It’s the overall quality. A granite counter with no other upgrades won’t make much of a difference.

5. Choose a neutral (or at least tasteful) colours. Dated wallpaper and outlandish colours can show up as a knock on "functional utlilty."

6. Get money in the bag before you launch a remodel. The most foolish thing is starting the demolition and running out of money. And yes, it happens a lot.

7. Share the history. Tell the appraiser what you’ve done to the house and what it cost. You may not get full credit but it doesn’t hurt to note it.

8. Point out red herrings. If a neighbour recently unloaded a house in a distress sale, explain the circumstances so their low-ball price doesn’t get factored into the comps.

Source: Seattle-Post Intelligencer, Friday, August 25 2006