We would like to get an appraisal done on our house to see if we could even sell it. It is a very small house and we have 2 -soon to be 3 kids. We have a lot of stuff. Does an appraiser look at the amount of stuff we have? My MIL keeps telling me that basically the house has to look like you're showing it for sale and there has to be very minimal stuff around and well decorated and clean. The bare minimum. I keep telling her that an appraiser is not looking at how nicely decorated the house is. The stains she put on my new carpet might hurt though!

You're right...an appraiser does not look at your stuff! It helps if he/she can see the floor and walls, though.

First and foremost, an appraiser looks at comps! Then depending on the type of appraisal required, the house will be thoroughly inspected, measured, sketched and then compared to the comps and valued.

That's for a full appraisal...as I said, there's more than one kind.

Yup - size, number of bedrooms, number of baths and what are the comps. If water is pouring through the roof, would probably affect the price...

I agree with the above posts but believe that, because the appraiser is a human being, the home's appearance will affect his/her opinion of the property to some degree.

Besides square footage, number of beds/baths, etc., the appraisal is affected by the perceived (as well as measureable) condition of the home and its systems. A clean, attractive, uncluttered interior could very well be perceived to be in better condition than a home with the opposite qualities.

So, while you may not need to have the house "show ready" for the appraiser, any cleaning and decluttering you do to your home and yard wouldn't be a waste of your time, IMHO.

Curious? Is this a paid appraiser you are talking about or are you looking for a "free" realtor market analysis appraisal?

quote:

Originally posted by Jewel:
I agree with the above posts but believe that, because the appraiser is a human being, the home's appearance will affect his/her opinion of the property to some degree.

Besides square footage, number of beds/baths, etc., the appraisal is affected by the perceived (as well as measureable) condition of the home and its systems. A clean, attractive, uncluttered interior could very well be perceived to be in better condition than a home with the opposite qualities.

So, while you may not need to have the house "show ready" for the appraiser, any cleaning and decluttering you do to your home and yard wouldn't be a waste of your time, IMHO.

A professional appraiser does not let clutter enter into his valuation. He sticks to facts. Those "perceptions" relate to a buyer. Condition of a property is determined by careful inspection...even if he has to kick clutter aside.

This is not to say that you shouldn't clean up for an appraisal inspection...far from it, anything you can do to make his job easier will be appreciated. The fact is, most people don't...you would not believe the condition some properties (high end, too) are in on inspection day. By appointment, no less!

I'm in agreement with Jewel here. Although an appraiser does look at many factual issues, there is also a subjective element as well that probably comes from an over-all perspective of how clean and well-maintained the house appears to be although decor would be irrelevant.

The fact of the matter is that two houses in the same area with identical square footage, lot size and number of B/B will appraise differently if one is dirty and cluttered with an unkempt exterior versus one that is clean and well-maintained with a tidy exterior.

So, personally, I would de-clutter, clean extensively and spruce up the exterior BEFORE inviting an appraiser onto the property! Good Luck!

mully,

I do not recommend you spend **$ on a formal appraisal. First and foremost, an appraisal is an opinion of value at a given, fixed point in time. In a fluctuating market, it may be obsolete before you even receive the actual written report. In addition, it's entirely subjective.

Besides that, it normally can not be used for multiple purposes. It's not useful for negotiations. By that time, it's almost always obsolete. Moreover, buyers typically prefer their own (formal or informal) appraiser or another valuation method. It can't be used to close the sale - the buyer (unless they do not require financing) must use their lender's designated professional.

Instead, I suggest you meet individually with 3 experienced realtors who specialize in your local area. Ask each of them to review your home's particulars and prepare a CMA form, including detailed comparable sales information and a suggested listing price. (BTW, the CMA, a comparative market analysis, is a standard form.)

To be conservative when you make the decision to either go forward (or not) WRT listing your home, I would carefully consider the lowest suggested listing price and probably assume that realtor was the most honest/realistic. (I am sure you understand some realtors may have a tendency to quote higher prices in order to gain your business.)

Incidentally, if you ultimately list the home and believe another realtor would market it more professionally or work more effectively with you and your family, you need not necessarily select your realtor on that one factor, i.e. the suggested listing price, alone. If/when you list, however, do consider underpricing your competition to avoid becoming the stale listing that sits on the market for months on end, riding the market down with multiple price reductions.

Sorry to deviate from your question but I strongly believe you should save your **$.

JMHO, as usual.

Good Luck!

This message has been edited. Last edited by: RErocker,

I agree with RErocker. I would get at least 3 experienced realtors from different local companies to do a comparative market analysis on your home. You may get similar estimates but more likely three different ones, and hopefully two will be closer together? The lowest estimate is probably closest to a probable selling price, but still no guarantee.
Since you are unsure about selling at this time, ask yourself if this lowest price could get you a house with what you want (cost of loan/closing/real estate selling fees added in), or if you are best staying where you are?

You could short change yourself ordering appraisal up front.

A few years ago we got a "letter appraisal" from an apraisal company for about $125.00. We were selling my MIL's house in a small town and we were selling FSBO. We wanted to sell quickly but at a reasonable price. We were comfortable with this.

Kiwi - Doubt if you could get a "letter" appraisal these days with the new Appraisal laws.

The new system is a mess. The banks can no longer use their appraisers and have to order appraisers off a unifomed list.

Appraiser are coming from outside the area, not even familiar with territory, using comps in the next neighborhood over which may be a distressed neighborhood and coming in with low appraisals.

I just had an appraisal done on a sale with an oversized lot and instead of pulling "LIKE KIND" in neighborhood and adjusting for the extra land, they used comps from a neighborhood NOT as upscale, that had large lots.

Comps are key!!

This message has been edited. Last edited by: real estate lady,

First, I'm not an appraiser...DH was and SIL is and has been for many years. As well, I've done a lot of the paperwork, taken pictures and actually taken the certification tests. Not once in all these many years have I heard one of them say, "that place was such a dump, I'm going to take 10K (or whatever) off the value". I've heard all about those dumps, that's for sure, but cleanliness and neatness do not count in a valuation. Condition...actual, not perceived...counts.

quote:

Originally posted by Idaho Resident:
I'm in agreement with Jewel here. Although an appraiser does look at many factual issues, there is also a subjective element as well that probably comes from an over-all perspective of how clean and well-maintained the house appears to be although decor would be irrelevant.

The fact of the matter is that two houses in the same area with identical square footage, lot size and number of B/B will appraise differently if one is dirty and cluttered with an unkempt exterior versus one that is clean and well-maintained with a tidy exterior.

Exactly. The appraiser may not even be fully cognizant that the property's appearance is affecting how he/she is assigning value, but it's simply human nature to be influenced by such matters.

Frankly, a property with a dirty and unkempt interior/exterior ought to appraise differently than a comparable house that is clean with tidy curb-appeal.

quote:

Originally posted by Jewel:

quote:

Originally posted by Idaho Resident:
I'm in agreement with Jewel here. Although an appraiser does look at many factual issues, there is also a subjective element as well that probably comes from an over-all perspective of how clean and well-maintained the house appears to be although decor would be irrelevant.

The fact of the matter is that two houses in the same area with identical square footage, lot size and number of B/B will appraise differently if one is dirty and cluttered with an unkempt exterior versus one that is clean and well-maintained with a tidy exterior.

Exactly. The appraiser may not even be fully cognizant that the property's appearance is affecting how he/she is assigning value, but it's simply human nature to be influenced by such matters.

Frankly, a property with a dirty and unkempt interior/exterior ought to appraise differently than a comparable house that is clean with tidy curb-appeal.

How do you figure that? During an appraisal the appraiser is measuring the rooms, looking at the condition of some finishes - vinyl vs tile, granite countertops vs laminate, etc., the age of the structure, exterior materials, and comparing it to similar properties that have recently sold.

They have a book of valuations that is used to make the comps and the subject property fairly equivalent. Such as the +- for a garage vs no garage, 2 baths vs 3 baths, etc. With competent appraisers there should not be a lot of difference between 2 different appraisers looking at the same property. The biggest difference will be the choice of comps.

With all that said, Conrad and RErocker are correct. Why pay when what you want to know if what your house might sell for. Interview 3 competent agents and you should get a good idea of whether to list or not.

This message has been edited. Last edited by: Charming,

It's clear that there are differences of opinion amongst us regarding the extent of which a property's condition affects the appraised value (in conjunction with the calculations derived from the construction materials used, square footage, etc.)

At this point, this thread is at risk of devolving into a circular debate with the same points posted and re-posted. I firmly stand by my previous statements and see no reason to reiterate my posts.

Best wishes, Mully, on your appraisal.

Agree, Jewel. Plus, moreover, it appears we've fully addressed the OP's question and haven't received any follow-up questions. I did want to (briefly) supplement my previous post, however.

mully, don't know if you're contemplating a FSBO. (Saw it mentioned by another poster.) Interviewing and considering 3 local realtors doesn't preclude you from listing your home as a FSBO. Obviously, you s/b upfront when you meet them and explain you're considering all options.

For a variety of reasons, I don't recommend FSBO's. If you're interested in discussing them further, feel free to post back here or start a new thread.

As usual, all of the above, IMHO.

Best of luck with your home and expanding family -

This message has been edited. Last edited by: RErocker,

Bottom line, prepare the home for the Appraiser
just like you would for a prospective buyer--in its best possible light! Hand him or her list of amenities, copy of listing, point out features and dates of new euipment - if you don't do it - make sure your Realtor does. They
already have a copy of the contract for the price they are trying to meet.

I just got an appraisal on a short sale..came in
$2500 over. That is automatic equity for the buyer before they hit the closing table.