Appraisal values can make or break a refinance application. Fresh paint, new flooring, updated fixtures and a good cleaning can lead to a more favorable assessment.
Discover 4 proven strategies to enhance your home’s refinance appraisal value. These techniques will help you secure a more favorable assessment of your property’s market worth, ensuring a successful refinancing application.
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Refinancing your mortgage involves several important steps, but the home appraisal may be the most crucial.
When a real estate appraiser hands down an opinion on the value of your house, it can make — or break — your ability to qualify for the new loan you want. Naturally, you want that value to match your refinancing goals.
» MORE: How and why to refinance your mortgage
A property appraisal is an analysis of your homes market value based on several factors, including its size, age, condition, location, amenities and previous sales prices, according to the Appraisal Institute, a global professional association for appraisers. Professional appraisers have specialized training and experience in property valuation, and their opinion carries a lot of weight with lenders.
Because market conditions change rapidly and property values in your neighborhood might be much higher (or lower) than when you bought your home, you need to have your property’s value appraised when refinancing. Any upgrades or improvements youve made wont be reflected in your original valuation; it benefits you to have an appraiser see those in person. If youve let your home fall into disrepair, though, an appraiser will take note of that, too.
» MORE: What to do if you’re facing appraisal discrimination
How to prepare for an appraisal
You don’t need to do an expensive remodeling project to increase the appraised value of your home for a refinance. Appraisers consider many factors to determine the value of a home, including the general condition of the interior and exterior. A little time and elbow grease on your part can pay off. Here are four projects that will give the best bang for your buck:
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Refresh paint, remove clutter. The quickest, easiest way to increase your chances of a higher appraisal is to paint, which can take years off an outdated home. If there are crayon marks on your walls and clutter on the floors, a fresh coat of paint and some simple organizing will make a good impression when an appraiser visits.
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Replace or fix worn carpet and flooring. If you dont have the money to replace all of your flooring, focus on fixing damaged sections and getting carpets professionally cleaned before an appraisal.
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Update elements of the kitchen and bathrooms. Touching up these rooms remains the gold standard for netting you the best return on your home-improvement dollars. Keeping them clean certainly goes a long way, but you can do low-cost upgrades that add value, too, such as removing wallpaper, refinishing laminate countertops, painting cabinets and hanging new light fixtures, Gale says. You dont have to do a complete renovation or spend a lot of money to gain value in these rooms for a refi appraisal, but making a few updates will earn value adjustments in your favor.
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Create curb appeal. A good first impression doesnt hurt. Cleaning up flower beds and redoing the mulch are inexpensive, low-effort ways to make your home easy on the eyes.
These options will give you the best chance of scoring a higher appraisal value that will, in turn, help you get the mortgage refinance that meets your real estate goals.
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