How to Improve Your Chances of a Favorable Appraisal When Selling Your Home
One reason for a delay in the closing of a home sale is a problem with the appraisal. Issues with the appraisal result in 18% of home sale delays and are the second most common reason to hold up a home sale (obtaining financing is number one). Appraisal problems can not only delay the closing, but are also responsible for the termination of 9% of the home sale contracts.
While appraisal issues may be unavoidable, there are three main areas of your home you can focus on when preparing for an appraisal.
- Curb appeal.
Curb Appeal Improvements
Yes, curb appeal matters! In a Journal of Real Estate Finance and Economics report, researchers found that curb appeal can increase a home’s sales price by 7% compared to properties lacking curb appeal.
The key is to set the right first impression, showing that your home is well maintained and offers a great deal of value.
Some low-cost ways to increase your home’s curb appeal include:
- Mulch around trees, shrubs, and plants.
- Add pops of color, such as flowerpots at the door.
- If it is within your budget, create additional outside living spaces by expanding stone or brick patios.
Mid-range to upscale bathroom improvements and remodels can recoup around 60% of your investment. While the appraiser won’t judge your decor, bathroom improvements can show that the home is well cared for and up-to-date.
If a major remodel is not within your budget, some simple projects can make the bathroom more appealing to buyers.
- Address caulking problems or other glaring problems before you take on cosmetic issues.
- Update vanity lights and faucets, so they match. Matte black and brass are very trendy.
- Light, neutral-colors can help make a small bathroom space feel larger and calming.
- Replace low-wattage bulbs with higher-watt LED bulbs, and install dimmers if possible.
Kitchen remodels can be the most costly; however, they can return the most on your investment. On average, a kitchen remodel has around 77.6% return on investment.
An easy way to revamp the entire kitchen is a simple cabinet color change. Today, all-white cabinets, black cabinetry, gray cabinets, jewel-toned, and two-toned cabinets are fashionable. Also, updating the cabinet hardware can go a long way in upgrading a kitchen.
Furthermore, improving lighting is a simple way to update the kitchen.
Pendant lights hung from the ceiling above the kitchen island, usually in a row of two or three, are an easy way to modernizes a kitchen. Some designers refer to pendant lights as the jewelry of your kitchen. They add a little decorative sparkle to catch the eye and can be an excellent choice for smaller kitchens or kitchens within an open floor plan.
When preparing to sell your home, implement the changes you can make to get a favorable appraisal that supports your desired price and a quick sale.
By making these changes, you’ll be much happier with the results of selling your home.