Among the many crucial stages of a real estate transaction you are bound to come across valuations, or better said, home valuations.
Since you've considered putting your house on the market, it's highly essential that you understand the importance of a home valuation, and how to go about preparing your home for one.
Homeowners who consider home valuations as unimportant or unnecessary in their case, end up disappointed in the end.
These homeowners fail to see the importance of a home appraisal/valuation, thus they lack the maturity to understand that a home appraisal/valuation has been the main cause for many real estate transactions disintegrating.
Negative bank appraisals/valuations can be easily avoided, if the homeowner selling his/her house understands the importance of this mechanism and how to prepare for one.
What Is A Home Valuation?
For those homeowners who are selling their homes, but just don't see where a home valuation fits into the process, and its significant relationship with a real estate transaction, first and foremost you need to get clear the air on those two points.
The important thing to remember about the nature of a home valuation is that, in itself, it is an unbiased evaluation of what your house is truly worth on the market.
Look at it this way, a home valuation surfaces when a potential buyer seeks out financing from a bank or mortgage broker, in order to buy your house.
The key purpose of a valuation is to serve as a safeguard for the lender who has favorably considered the borrower's loan application, and is in the process of releasing funds accordingly, without the risk of over funding - which also ensures the borrower does not pay more than what the property's true worth.
A lot of investors tend to surf the common wave of belief that a home valuation is no different to a home inspection.
Walk Around Your Home With An Extra Critical Perspective
Now that you have a crystal clear understanding of a home valuation and what it's all about, you can better prepare for one. To begin with, the key suggestion to being prepared for a home valuation is doing a complete walk through of your home.
The significance of this walkthrough is to simply pick out neglected repairs and maintenance, so as not to annoy the valuer when the time comes. During the walk through, look at your home through the eyes of a critically unbiased buyer. Be neutral in your judgment.
Most homeowners often fail to understand that neglected repairs can easily lead to a sorry state of affairs - during a home valuation - and can easily disgust a valuer as well.
So, while you're walking through your home, it has to be accompanied with a critical perspective, so that such potential chaos like leaking roofs, faulty electric wires, plastered holes in the walls, and a variety of other potential repairs that scream neglect do not disappoint the home valuation process.
Create A List Of All Upgrades And Improvements
Often homeowners spend more on upgrades and improvements, only for the valuer to overlook these value-adds, not on purpose but by mistake.
Needless to say, some of these upgrades and improvements are unique to the point where they're actually unnoticeable, therefore many a valuer tend to miss it.
This is why when preparing for a home valuation, you must make sure that you note these upgrades and improvements, so that the valuer is aware of what to consider when determining the true worth of your house. This is customary in a home valuation process.
This is your sole responsibility, and don't make the mistake of leaving to chance for the valuer. Doing so increases the chances of the valuer to miss these recent touch ups in your house, and will harm the outcome of the valuation.
With a luxury home, it's even more demanding when it comes to making a list of all the recent DIY upgrades and improvements, in this case.
The logic here revolves around that fact that a good number of these upgrades and improvements to a luxury home aren't visible to the naked eye - because of the word "luxury" itself.
For instance, a luxury home that recently upgraded to in-built security system, an electrostatic filter, new kitchen appliances with a kitchen island countertop, and a host of other eccentric touch ups that a valuer can potentially add value to, if not listed may easily go unnoticed by valuers.
Make Sure Your Home Looks Good From The Curb
There are lots of important items to consider when preparing your home for an imminent home valuation while up for sale, and among these considerations you're bound to come across curb appeal. Curb appeal does have its merits when preparing your for a valuer to come by for valuations.
Just like neglected home repairs, an attractive curb appeal is synonymous with a poor first impression, and if you're after a favorable outcome from the sale of your house, thanks to a commending valuation, this is one thing you must never overlook.
The good news is that, improving the curb appeal of your home serves as one of the best ways to prepare your home for a valuation on a budget.
So walking through and about your home to ensure it is ready for valuation can simply go a long way.
On top of that, ensure the curb appeal is free from overgrown shrubs, bushes, weeds, and overall blemishes.
We hope you enjoyed the first part of a two part article. Please stay tuned for more as we work behind the scenes to bring you the best the real estate industry has to offer.
This article is meant for informational purposes only. Hausples digs into the details of a tricky topic and teaches its readers all about how the real estate industry operates, in an easily digestible and accessible way. Therefore, not all articles are intended to be construed as financial, or investment advice. Hausples encourages you to reach out for professional help regarding your own real estate situation.