What is a Home Appraisal?

A home appraisal checklist is an unbiased assessment of a property’s value, conducted by a licensed and certified appraiser. Mortgage lenders rely on appraisals to determine the loan amount they can provide to a buyer. The appraisal process involves a thorough inspection of the property’s condition, size, and features, along with an analysis of comparable properties recently sold in the area. This ensures that buyers pay a fair price and lenders make a sound investment.

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Home Appraisals vs. Home Inspections

Many people confuse home appraisals with home inspections, but they serve different purposes. The table below outlines their differences:

Feature	Home Appraisal	Home Inspection
Purpose	Determines property value	Evaluates property condition
Conducted By	Licensed appraiser	Certified home inspector
Used By	Mortgage lenders, buyers, sellers	Buyers, sellers
Factors Considered	Market value, comps, property features	Structural integrity, safety issues
Outcome	Appraised value for loan approval	Report on necessary repairs

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Home Appraisal Process & Timeline

The appraisal process consists of three main steps:

1. Market Analysis – The appraiser compares the home to similar recently sold properties (comps) in the neighborhood.
2. On-Site Inspection – The appraiser evaluates the home’s condition, features, and size, which can take 20 minutes to a few hours.
3. Appraisal Report – The final report takes a few days to a few weeks to complete.

For Sellers: Appraisals can help set a competitive asking price and identify potential improvements to increase value. For Buyers: Lenders require an appraisal before finalizing a loan to ensure the purchase price aligns with market value.

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Preparing for a Home Appraisal

For Sellers and Refinancers

Task	Purpose
Gather documents (previous appraisals, tax records, home improvements)	Provides evidence of property enhancements
Ensure access to all areas of the house	Avoids delays in the appraisal process
Repair damaged walls, leaks, or peeling paint	Prevents value deductions
Secure handrails on stairs/decks	Improves safety and compliance
Clean carpets, re-caulk bathtubs	Enhances overall appeal
Consider a pre-listing appraisal	Helps in setting a competitive price

For Buyers

Task	Purpose
Research comparable home values	Helps in understanding fair market price
Include an appraisal contingency	Protects against overpaying
Evaluate home condition before making an offer	Prepares for future repairs and negotiations
Coordinate with the mortgage lender	Ensures smooth loan approval process

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What Do Home Appraisers Look For?

The table below outlines key factors appraisers consider:

Factor	Considerations
Structural Integrity	Foundation, roof, gutters
Condition	Leaks, peeling paint, missing fixtures
Property Size	Lot size, square footage
Interior Features	Number of bedrooms, bathrooms
Appliances	Functionality and condition
Utilities	Electricity, plumbing, HVAC
Zoning Compliance	Residential or commercial classification

What Appraisers Don’t Consider: Personal décor, ceiling fans, window coverings, and other aesthetic preferences.

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Appraisal Guidelines for Different Loan Types

FHA & USDA Loans

If you’re applying for an FHA or USDA loan, the home must meet specific Department of Housing and Urban Development (HUD) guidelines. Issues that may cause a loan to fall through include:

• Damaged siding
• Poor driveway conditions
• Exposed floorboards
• Water damage
• Leaky roof
• Peeling paint

VA Loans

A VA appraisal includes additional requirements to protect service members, such as:

• Secure foundation
• Functional heating and air conditioning
• Working sewer system and water heater
• Structurally sound roof

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Appraisal Costs and Payment

Question	Answer
Who pays for the appraisal?	Usually the buyer, sometimes the seller negotiates to pay.
How much does an appraisal cost?	Typically $400 to $1,000, depending on location and property type.
When is the appraisal paid?	Usually upfront, as part of closing costs.

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Understanding Home Value & Disputes

Factors Affecting Fair Market Value

Factor	Description
Local Market Trends	Supply, demand, and economic conditions
Property Condition	Structural integrity and maintenance
Comparable Sales	Recent transactions of similar homes
Unique Features	Upgrades, renovations, curb appeal

Appraised Value vs. Tax Assessed Value

Value Type	Purpose
Appraised Value	Used by lenders to determine loan amount
Tax Assessed Value	Used by local governments to calculate property taxes

If there’s a discrepancy, homeowners can appeal the assessed value to lower their tax bill.

Can You Dispute an Appraisal?

Yes! If you believe your appraisal is inaccurate:

• Request a copy of the appraisal report.
• Review it with your real estate agent.
• File an appeal or request a second appraisal if there are errors.

Additionally, if you suspect a discriminatory appraisal, the PAVE (Property Appraisal and Valuation Equity) Action Plan allows you to challenge potential racial or ethnic bias.

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Maximizing Your Home’s Appraisal Value

While you can’t control the market, you can prepare your home to get the highest valuation possible. Even minor improvements can make a difference! Use the $500 Rule—appraisers typically value properties in $500 increments, so small upgrades can contribute to a better valuation.

Ready to get started? A well-prepared home appraisal can mean thousands of dollars more in your pocket!

Final Thoughts

Preparing for a home appraisal doesn’t have to be stressful. By following this home appraisal checklist, you can increase your property’s value and secure a better offer. Whether selling to a cash home buyer or through traditional methods, proper preparation can make all the difference.

Get a Free Consultation with XLNC Exotic Homes

Contact XLNC Exotic Homes today to get expert guidance on preparing your home for a high appraisal.