Steps for successful appraisal

1. Make sure that you complete any renovations you have started or else the appraiser will deduct the cost to finish those things from the value of your home.

2. Make sure that you have a HUD plate on the front and rear of the home displaying details of when you received a title and when you purchased it. Your local assessment office can give you all details.

3. Make sure that your home is marketable if you want the highest value out of it. Don’t deny a paint if your house desperately needs one, or fix broken windows or cabinets thinking that there is no point spending on it. On the contrary, you should place yourself in the shoes of a potential buyer and start thinking what you would have liked. Updating your house is also important from appraisal’s point of view. This is because appraisers will take pictures of every portion of your house, interiors, exteriors, lawns, etc.

4. An appraised value of your home also depends on closed sales in your area. Many times a realtor will have approached you with a value to list your home, but that may differ from an appraised value. The appraiser gives a value as of the date of the inspection, a realtor gives a value based on a future date with adequate market exposure and time.

5. Consider having a Private Mortgage Insurance (PMI). Banks sell PMI to homeowners who have received more than 80% of their loan as a mortgage. In case you don’t have 20% to put down on your home then you may start paying PMI. PMI is paid monthly, on top of your interest and principle.