Whether Buying or Selling, Get a Fair Home Appraisal

If you are a homeowner planning to sell a house or an individual planning to buy, you can take steps to ensure that your home appraisal is not below the loan amount you are applying for or below your selling price.

Because of the role of inflated home values in the housing meltdown and in record mortgage losses, mortgage banks are now under pressure to obtain house appraisal reports from independent appraisers to remove doubts that they are influencing appraisal values.

Many homeowners or brokers however have been complaining that appraisal management companies have been giving very low appraisals in order to please their clients.

One of the factors considered by appraisers when assessing home values is the recent pricing of houses similar to your house in your neighborhood. If you know unusual circumstances behind the very low sales prices of homes in your area, inform the appraiser. According to Michael Evans of the American Society of

Appraisers, appraisal professionals appreciate extra but relevant information that can be validated.

The overall appearance of your house can also add value. According to Leslie Sellers, incoming president of the Appraisal Institute, said the appraiser will be looking at a property through the eyes of a buyer. Among the things that you can do are to clean your windows, mow your yard, remove clutter from your floors and make the house pleasing to the eyes.

You can also summarize the best features of your home and then type them on a card that you can hand to the appraiser before the appraisal work is started. You can include new windows, customized woodwork, landscaping, nature views and access to good schools and public transportation.

You can also point out energy-efficient home improvements that you have done.

When the appraisal is finished, ask for a copy of the appraisal report. You have the right to receive a copy of the report from lenders. Check the report for errors in data such as total area and number of rooms and see to it that the descriptions and comments are accurate.

If you find errors, call the appraiser and ask him to make corrections. If the appraiser does not recognize his errors and refuses to make changes in the report, file a complaint with your state’s board of real estate appraisal. You can also tell your broker or your bank about your complaints, but remember also that brokers or banks can no longer influence appraisals under the Home Valuation Code of Conduct.