A part of the real estate process is making sure the property looks as good as possible so that as a real estate agent, you can ensure it makes a great first impression on would-be buyers.
However, the preparations don’t stop there. You need to make sure that your clients are ready for the appraisal.
For a client, determining a price for their home can be stressful, and knowing how to prepare for an appraisal can make all of the difference. If the home’s appraised value comes too far from the sale or listing price, it could spell disaster and leave the deal crumbling.
While real estate appraisers come under some well-defined regulations, a large part of their job is subjective. This means that you can prepare a home to make a good impression.
As an agent, you need to maintain a critical eye. This can be the hardest area for sellers. Help your clients become aware of any areas in need of maintenance. If you and your clients can think like an appraiser and pick out any issues that could have a negative impact on the property, you can head them off ahead of the appraisal.
Agents also can help their clients by researching comparables.
“Usually it’s up to the seller’s agent to pull together a comp report showcasing how great the property in question is compared to the current market,” noted Gina Ko of Triplemint Real Estate in New York City.
However, just like everything else in the appraisal process, comps are subject to guidelines, as well as an appraiser’s individual opinion. You can provide your client a list of comps to give their appraiser.
Even if the list isn’t used by the appraiser, the list will be important should your clients need to seek an appeal after the appraisal.
Clients also should prepare a list of upgrades, which can prove to be a valuable tool because they allow the appraiser to see any added value in a property. Make sure that your client includes approximate dates, permits, and warranties for these projects, as well.
“I work with the seller to prepare a highlight sheet, just a simple one-page document outlining all the upgrades that have been done to the home,” Ryan Hardy, a real estate agent with Gold Coast Realty Chicago, told Realtor.com.
And never under-estimate the importance of cleaning. It might sound like a no-brainer, but cleaning for an appraisal is so important and it is something that should be stressed to clients.
“Have the house clean and clutter-free,” Kevin Lawnton, a real estate agent with Coldwell Banker Schiavone & Associates in Bordentown, N.J., told the site.
