Prepping for an appraisal?

[Anonymous]

We're having an appraisal done for a refinance. I'm thinking this should be fairly cut and dried since we're in a townhouse community, all with the same layout. Just wondering if I need to 'prep' the house any? The house is generally in good condition, but right now the carpet could use a shampoo, there are some scuffs on the wall, etc. Will that even matter?

[Anonymous]

No, they look at four walls and many times they do not even go inside the house.

[Anonymous]

We had an appraisal for a refinance a few months ago. They (there were 2 of them) came in, looked around, and took some measurements both inside and outside. They asked a few questions, like whether our granite counters were here when we bought the house. Before they arrived, they asked us to have available a list of improvements we had made to the house (like upgrading a linoleum kitchen floor to hardwood, new windows, new roof, etc). They also quickly checked out the windows and HVAC, both of which were brand new. It was actually more detailed than I expected, but he specifically noted that they don't care whether your house is clean or cluttered. So, no, I wouldn't worry about minor issues like the carpets and paint.

[Anonymous]

Thanks! This is very helpful!

[Anonymous]

Anonymous wrote:No, they look at four walls and many times they do not even go inside the house.

I think this experience was pre mortgage crisis days. We recently had an appraisal for a refi on about 25% of the home value. Didn't matter, the appraisal took over an hour, lots of questions, measuring, pictures, etc. But agree that you should be prepared to name all your improvements and that scuff marks won't matter to the appraiser.

[Anonymous]

Scuff marks don't matter but major improvements do add value. I had a list of them for the appraiser (new roof, inground sprinkler system, etc.) and he factored them in. If you say the carpets were just shampooed or the walls have been painted, it won't matter, but if you've put in all new kitchen cabinets, counters, floors, etc. that can increase the appraised value.

[Anonymous]

I'm going to differ with the PPs.

Appraisers are human, and they are supposed to--to the best of their ability--estimate what a home's market value would be. That is, they have to imagine what a potential buyer would pay for a home based upon a number of factors, including the general condition of the home. It NEVER hurts to have a clean, uncluttered home.

If you home has sold recently, then the appraiser's value is going to be based primarily upon the sale price and not "impressions" (unless you've done major upgrades). However, if you bought a while ago, I would definitely consider sprucing up your home.

[Anonymous]

You should prep, but not the way you are thinking. Have a real estate agent (they will do it for free, hoping that you use them in the future), provide you comps. Look for ones that you think are comparable on paper AND give you the value you want. Have the printouts available for the appraiser.

If any comps are bad for you and you can explain why they sold so low, prepare a written explanation (it better be good) and submit it to the appraiser as well.