Preparing for an Appraisal
provided courtesy of Marvin Stanton Inc.

Anyone who has bought or sold a home knows that the real estate appraisal is a key component to making the transaction happen. The appraisal is what buyer, seller, estate agent and mortgage lender all use to determine fair market value for the property under consideration.

Keep in mind that by law, the appraiser must be state licensed to perform appraisals for federal transactions, and that you are entitled, also by law, to receive a copy of the complete appraisal report from your lender.

You can make the appraisal go more smoothly if you have a few documents ready before the appraiser arrives:

• A plot plan or survey of the house and land

• Information on the latest purchase of the property

• Written property agreements, such as maintenance agreements

• List of personal property to be sold with the building

• Title policy describing encroachments & easements

• Most recent property tax bill or legal description of the property

• Home inspection reports, including if available:

  • Recent termite reports

  • EIFS (for stucco) wall systems

  • septic systems & wells

• A list of major home improvements & upgrades, how much they cost, and permit confirmation (if you have it.)

• A copy of the current listing agreement with broker's data sheet & agreement if a sale is pending

• Information on condominium covenants & fees or homeowner's associations

• List proposed improvements if the property is to be appraised "As Complete"

A few other helpful hints:

• Make it easy for the appraiser to access all areas, including attics and crawl space.

• While the appraiser is not there to appraise your housekeeping skills, a good impression never hurts.

• Make any minor repairs before the appraisal.

• If prospective buyer is applying for a FHA/VA loan - ask the appraiser if there are specific things that need to be done before they come. Examples include: installing smoke detectors, installing handrails on stairs, and removing peeling paint.

If you are ready, you may order an appraisal.