There is no denying that Ontario’s housing market has seen a surge in recent activity. With increasing housing prices, it becomes all the more important to ensure that you can compete when selling your home, and for that, you need a good home appraisal.
Tips for increasing your resale value may seem like a dime-a-dozen, but at Morison Insurance, we know how to highlight your property’s good condition and boost your home’s overall value. That’s why we’re sharing these home appraisal tips for sellers to ensure you get the most value out of your home.
A home appraisal is an unbiased estimate of the overall market value of a property. They are conducted by a professional home appraiser who considers a wide range of factors when calculating a property's value, such as:
Once assessed, a professional appraiser will then provide you with an appraisal report, documenting their findings, comparable houses in the area, and a valuation of your home. Appraisal reports are typically used by mortgage lenders who want to ensure that a property is actually worth the home loan amount when you are applying for a mortgage or refinancing your home, but sellers can also benefit from them, as they can help them determine a fair asking price for their home, and can highlight areas of improvement.
Typically, home appraisals do not directly impact the cost of your home insurance, as your policy coverage is based on the costs to repair or rebuild your home should an insured event occur. However, a home appraisal report can indirectly impact home insurance premiums if your property is found to be in poor condition due to neglect, has features that can increase the risk of damage or loss, or lacks certain safety features, in which case you would need to invest in updates to keep your insurance coverage. The home appraisal report may also reveal that your home is worth more than originally expected, in which case you may want to increase the amount of protection you have to ensure proper insurance coverage of your high-value home in the event of an unforeseen incident.
Because a home appraisal is an evaluation of your home’s value, there are several factors that can drag down its value. Some things that can impact your appraisal include:
While some of these factors, such as comparable housing prices and if you’re in the middle of a housing downturn, may be out of your hands, others, such as the condition of your home, are not. This makes it imperative to take the time and invest in regular home maintenance and repairs and ensure that any modifications or renovations to your home are done properly. Not only is this a good home appraisal tip, but it also ensures that you can enjoy your home safely while living in it, and no unnecessary surprises will pop up during the appraisal process or a home inspection report.
Now that we understand the importance of having a good home appraisal, it’s time to discuss various home appraisal tips for appraisal preparation. For sellers, having a good home appraisal can mean the difference between making or losing money when selling their home. It’s important to sit down and read these top home appraisal tips to prepare for a home appraisal and increase the appraised value of your home.
Whether you are a maximalist or a minimalist, chances are some parts of the home don’t receive the same level of attention regularly that the rest of your home does. This home appraisal tip for sellers is to ensure your home is clean before the home appraiser arrives.
This expert tip for home appraisals is not about your regular chores, such as dusting shelves or washing your bedsheets—although you should do those things too—but is more for chores such as deep-cleaning carpets, scrubbing tile grout lines, and washing baseboards. Performing these tasks can make your home feel cleaner, fresher, and in better condition.
Additionally, remove clutter and half-finished projects that take up space and can make a space look messy. Remember, you are selling the home itself, not your style preferences, so as part of this home appraisal tip, box up, put away, or get rid of these items to ensure you can increase your home's appraisal value and get a better resale price.
First appearances matter, especially when it comes to selling your home. According to a 2020 Journal of Real Estate Finance study, your home’s curb appeal can account for up to seven percent. That’s why the next item on our list of home appraisal tips for sellers is to spruce up the exterior of your home to increase its curb appeal.
Regular exterior maintenance tasks such as lawn mowing, weeding, raking leaves, tidying garden beds, and removing snow and ice from pathways can go a long way in increasing your home's market value.
You love your home, so don’t be afraid of sharing what makes it so awesome with your appraiser. Provide your home appraiser with a detailed list of updates and improvement projects, including information such as what is done, who did the work, and the years it was done. Remember, some improvements, such as wiring or plumbing updates, are hidden, so this list can inform them about all those hidden projects. This home appraisal tip can be especially handy in scenarios such as replacing all the knob-and-tube wiring in an older home, as this gives potential home buyers and the appraiser peace of mind knowing that this update has been taken care of.
Additionally, the second part of this home appraisal tip for sellers is to share with your appraiser a list of notable features about your home. This is your time to gush about the view, the garden, and other features of the property that make it so awesome. Be sure to look up comparable properties in your area, and if there is anything that makes your home stand out in a good way, highlight it.
Homes are often appraised in $500 increments, so even small projects, such as a damaged tile or window, can add up and greatly decrease the value of your home. That’s why the next one of our home appraisal tips is to invest in repairs and improvements, but don’t spend too much.
Checking projects off your list can make your home look neater and more appealing, but there is a line regarding how much you should spend. For example, projects such as kitchen remodels can add the most value to your home, but they are also the most expensive. Talk to your local real estate agent or insurance broker about how much you should spend on home repairs and other projects before committing to them if increasing your property value is your goal.
Yes, we can all agree that your dog is cute, but it is a good idea to remove all pets from your home while the appraiser is there. You want them to have as positive of an experience as possible, and they may not appreciate your four-legged companion acting up around them. Additionally, it can be hard to determine how they might react to a stranger in your home, especially if you’re not around, so it’s best to keep them separate and follow this home appraisal tip for sellers.
This content is written by our Morison Insurance team. All
information posted is merely for educational and informational purposes. It is
not intended as a substitute for professional advice. Should you decide to act
upon any information in this article, you do so at your own risk. While the
information on this website has been verified to the best of our abilities, we
cannot guarantee that there are no mistakes or errors.
