Get Ahead of Appraiser Required Repairs: How Sellers Can Avoid the Most Common Closing Killers
Even before you decided to put your home up for sale, you probably knew making minor repairs and sprucing up your home would increase the chances of attracting the right buyers and getting a great offer. But, you may not realize how much the condition of your property — its appearance, maintenance, and safety — can impact the chances of converting that awesome offer into a smooth sale, especially if your buyer is using a mortgage that requires an appraisal, so it’s a good idea to get ahead on any appraisal required repairs.
What is an appraisal and why is it important?
Before properties can be financed, their value and condition are typically examined by a state-licensed, independent appraiser contracted by the buyer’s mortgage company.
By applying the lender’s required list of safety and maintenance criteria to the property, the appraiser provides invaluable insight in a boots-on-the-ground, first-hand review by an impartial party.
According to the Appraisal Institute, the appraisal report generally consists of a description of the property and its locale, an analysis of the “highest and best use” of the property, an analysis of sales of comparable properties “as near the subject property as possible,” and information regarding current real estate activity and/or market area trends.
It’s important to distinguish that appraisals are not intended to be a home inspection. Appraisers determine home value, while inspectors primarily focus on the condition of the home and property.
