Six Steps to Maximize your Appraisal

The home appraisal is very important when refiancing a mortage. By setting the official estimate of what your home is worth, it can have a big impact on whether your refinacing is approved and how much it will cost you. So how can you make sure you get the highest appraisal possible? A seemingly small difference in appraised value can make a significant difference when refinancing. Your appraisal will determine your loan-to value ratio, that is, the value of your home compard to the size of the loan. A more favorable loan -to value ratio can mean a lower interest rate, avoiding the cost of mortgage insurance or even whether your refinace is approved in the first place. Laws established since the financial crisis require that appraisers be hired and work independently of both lenders and homeowners, to prevent them from being unduly influenced by either. However, there are still some things you can do that will boost your appraised value, sometimes significantly. Here are six of them
1. Do your research
The law requires that the appraiser be independent of both the lender and owner. That doesn't mean you can't have any influence on the process. Before the appraisal is done, do your own reseach into recent sales of homes comparable to your own in your commuinity. Prepare a file of these, showing sale price, square footage, year built, amenities and other crucial factors and provide it to the appraiser as evidence your home should be priced comparably to them.
2. Stress the good stuff
You can be there when the appraisal is conducted in fact, you should be. While it's going on,take the opportunity to point out some of the better features of your house that might escape notice. Does it have unusually large closets? Special woodwork or high-grade siding? Are there spectacular views available? You should also take this opportuity to point out any improvements you've made since buying the home, since the appraiser will likely take your orginal purchase price into consideration when making an assessment. Did you refinish the basement? Upgrade the furnace or major appliances? Upgrade the kitchen or any bathrooms? This can all increase the relative value of your home over what you orginally paid for it, compared to othe properties in your community.
3. Tidy up
Presenting your house for an appraisal is a lot like presenting it for sale you want it to look as good as possible. Although appraisers are supposed to look beyond superficial things and focus on the fundamental, underlying value of the property, they're still susceptible to visual impressions, same as any human. So pick up the clutter, mow the lawn, clean the windows and do everything you can to make your home look its absolute best.
4.Fix it up
This ia a more extensive version of #3 presenting your home in the best possible light. If your home has any nagging maintenance issues, this would be a good time to take care of them. Maybe you've been meaning to do something about that damp basement. Does the driveway need a fresh coat of sealer? Are there dents or holes in the walls of broken fixtures anywhere? And fresh paint can work wonders for any home both inside and out.
5. Ask for second opinion
If you get an appraisal that you think is below what your home is truly worth, you're not stuck with it. You can ask for a new appraisal by a different appraiser. Again, you can't select the person to do the job they have to be assigned independently,but if you truly believe the first appraisal was off the mark it might be worthwhile to have someone else take a shot at it, paticularly if the first appraised value is causing you problems with your refinance. A new appraisal will cost several hundred dollars, just as the first one will, but might be worthwhile if it can help you trim your mortgage costs by refinancing.
6. Get help
Finally, you might consider getting professional help with a consultant specializing in presenting homes for sale or appraisal. These people know how to look at your home with a trained eye and can advise you on how to get the maximum boost in value for the minimum cost. They're particularly good at showing you the little things that can be done to present your home at its most appealing, as well as identifying critical issues that could be holding your home value down. Many claim that home value is all about "Location , location, location." You may not be able to do much about that when it comes to an appraisal of your home, but there are still things you can do to make sure it appraises for the best value possible with a bit of effort.by Josh Mettle