How to Prepare for an Appraisal

For homeowners, a real estate appraisal is the linchpin to buying or selling their home. It allows the property transactions to occur among the buyer, seller, real estate agent and mortgage lender.

Before an Appraiser arrives, there are a few things you should know. By law, an appraiser must be state licensed to perform appraisals prepared for federally related transactions. Also by law, you are entitled to receive a copy of the completed appraisal report directly from your lender, not from the appraiser. Even though you may actually pay for the appraisal, the Lender is the client and the only one that the appraiser is able to release the appraisal to.

To facilitate the appraisal process, it's beneficial to have these documents ready for the appraiser, ideally with an extra copy the appraiser may take with him: 

• A survey or plot plan of the house and land (if readily available)
• Information on the latest purchase of the property in the last three years
• Written property agreements, such as a maintenance agreement for a shared driveway
• List of personal property to be sold with the home and estimate of value
• Title policy that describes encroachments or easements
• Most recent real estate tax bill and or legal description of the property
• Home inspection or Structural Engineer's reports, E.M.P. reports, recent reports for termites, EIFS (synthetic stucco) wall systems, septic systems, soil percolation "Perc" Tests and well or water tests for private water supplies
• Brag or Information sheets that list major home improvements and upgrades, the date of their installation and their cost (for example, the addition of central air conditioning or roof repairs) and permit confirmation (if available)
• A copy of the current listing agreement and broker's data sheet and Purchase Agreement if a sale is "pending"
• Listing and sales information for the property for the past three years if known
• A copy of the "Homeowners Associations" or condominium covenants and fees
• A list of "Proposed" improvements if the property is to be appraised "As Complete"

Once your appraiser has arrived, you do not need to accompany him or her along on the entire site inspection, but you should be available to answer questions about your property and be willing to point out any major home improvements.

Here are some other suggestions:

• Accessibility: Make sure that all areas of the home are accessible, especially to the attic, crawl space and make sure that all gates around the house are not locked
• Housekeeping: Appraisers see hundreds of homes a year and will look past most clutter, but they're human beings too! A good impression can translate into a higher home value, but don't knock yourself out trying to achieve perfection
• Maintenance: Repair minor things like leaky faucets, missing door handles and trim
• FHA/VA Inspection Items: If your borrower is applying for an FHA/VA loan, be sure to ask your appraiser if there are specific things that should be done before they come. Some items they may recommend might be: Install smoke detectors on all levels (especially near bedrooms); install handrails on all stairways; remove peeling paint and repaint the effected area; provide inspection access to the attic and crawl
• Animals: Please advise the appraiser of any pets and their location and secure any pets that may be aggressive, protective or prone to jump up.
  
• Relax: By now you've done all that you can do. Find a comfortable chair where the appraiser can find you if he or she has any questions, and remember, appraisers are trained professionals who in 15 minutes, typically can see more than the average person would observe in two hours. 
  
• A typical inspection will last from 45 minutes to an hour and 15 minutes or more for a complex property. 

       Click to Download Homeowner's Questionaire (4 pages) in PDF format

                        HOMEOWNER QUESTIONAIRE.pdf

       Click to Download Homeowner's Questionaire (4 pages) in Word format

                        HOMEOWNER QUESTIONAIRE.doc

  A special thanks to Cliff Odom, Birmingham, Alabama, whose Homeowner Questionaire formed the basis of this questionaire.