I’m having my home appraised. What should I do to prepare for the appraisal inspection?

I’m having an appraisal inspection on my home next week. What should I do to prepare for the appointment? Do I need to make repairs? What will the appraiser be looking for during the appointment? This is my first home appraisal for a refinance and I’m not familiar with the process. Thanks for your help!

It might feel intimidating to have a professional examine the inside of your home, but rest assured, it’s a relatively simple and easy process. For a mortgage lending appraisal assignment, the appraiser will be taking measurements of the home, photographs of the interior and exterior, and written or audio notes of the amenities, finishes, condition and construction quality. 

Most mortgage lending appraisals require a sketch of the dimensions with the total “living area” square footage (this means the interior living space like the kitchen, bedrooms, bathrooms, dining, laundry and living room), as well as any other structures, like garages, sunrooms, enclosed patios, covered decks, etc.

Inspections will typically start with the outside/exterior first, then move indoors for the interior inspection.

For residential inspections, we generally start by measuring the exterior of the home and taking a look at the side yards and rear yard. After the exterior measurements have been taken, the appraiser will move inside for the interior portion of the inspection (for clarity, the word inspection is a bit of a misnomer, it’s typically more of an observation). Inspection generally take between 30 and 45 minutes. Larger homes, unique floor plans, or properties on acreage can take 60 - 75 minutes.

Here we’ll be photographing each room and making notes about the amenities, finishes (cabinetry, flooring, fixtures, countertops, etc) and condition, including any deferred maintenance or items needing repair. Lenders also require documentation of any addition built after the home was constructed, like a garage conversion or sunroom addition. Lenders also usually want to know if the water heater is double strapped, and whether smoke alarms and CO monitors were present.

Do these factors apply to estate or trust appraisals or just lending appraisals? Will the appraisal inspection be the same?

Inspections for estate or trust purposes are often less comprehensive than lending appraisal assignments. Depending on the estate assignment and scope of work, there may not be a need for taking measurements or including a sketch of the home. It’s not necessary to confirm the presence of CO monitors or double straps on the water heater. The more reliable information on the property available, the less comprehensive the inspection will need to be. There are exceptions to this, but in general, the inspections are less involved for estate or trust assignments.

Will I need to make any repairs or changes to my home before the appraisal inspection?

For a lending appraisal assignment, it’s a good idea to have your home showing its best for the inspection. Perhaps that means repairing or completing any unfinished items, like flooring installation. If you have concerns, it’s important to talk to your loan agent about any items that might need repair. Every lender has a different set of criteria in order to fund a loan. And some are more lenient than others. For example, If the appraiser sees damage to the roof, a broken window, dry rot on exterior siding, or missing floor coverings, that appraiser will ask the lender how they’d like to handle it.

Most often, the lender will require items like roof damage and missing floor coverings be repaired. After the appraisal is submitted to the lender, and the repairs have been completed, the appraisal will return for a “reinspection” to verify repairs are complete, or the borrower will submit evidence that the repairs have been completed. In order to require that a deficiency needs repair, the item in question would need to be a health or safety hazard. It would have to compromise the safety, security, structural integrity or sanitation of the property. The property will typically need to meet Minimum Property Requirements in order to be eligible for funding.

A few simple ways to make the appraisal inspection go smoothly:

• Clean and Declutter - Have your home show it’s best for the inspection. Basic housekeeping, decluttering and cleanliness is the easiest way to help a home show its best. It also makes it easier for the appraiser to measure and identify amenities and finishes, as well as helping the mortgage team reading the report to see the finishes and amenities clearly.

• Clear a Path, Inside and Out - The appraiser will need to access each room (including your garage and any outbuildings) and most likely take pictures. Make sure there is a clear path through each room and hallway, as well as a pathway surrounding the exterior walls. Clean up any tripping hazards or items that may be a health of safety issue.

• Let There be Light - The appraiser will need ample light to inspect. Turn on all interior lights if possible, and open window coverings. Keep doors to bedrooms and bathrooms ideally open, but unlocked at a minimum. Make sure all rooms are available to inspect. Sometimes appointments will coincide with the resident getting ready for work and a bathroom may be in use. That’s no problem–we can start on another area of the home and take a look towards the end of the inspection.

• Make a List of Updated Features - Let the appraiser know of any updated improvements or renovations throughout the years. The appraiser rarely has access to a prior appraisal on the property, so you’ll want to relay any pertinent information on updating or remodeling. This can be done verbally over the phone or during the inspection. We encourage homeowners to make an itemized list of improvements with the item, year added, and cost of improvement, i.e. composition shingle roof, 2016, $27,000.

What if my home is cluttered and I can’t get to the items you suggested? Will having a messy home hurt my home value?

That’s perfectly okay! And no, the personal items will not diminish the home’s value. These are just suggestions or recommendations to assist in the appraisal process. And while a cluttered interior is not factored into the process, the appraiser will be observing the overall condition of the home. So, if there is damage to the home itself (i.e. holes in drywall, missing or damaged floor coverings, broken windows, roof leak), those factors will be taken into consideration in the appraisal process, and depending on the damage, the lender may require that repairs be made.

Note: the scope of work may vary widely from one lending assignment to the next depending on the lender’s requirements, type of loan, i.e. VA versus Conventional or FHA, and the purpose of the appraisal. The above material should be considered general information for typical lending appraisal assignments. Make sure to check with your loan representative if you have questions or concerns in regards to the inspection, possible required repairs, or the appraisal process.