How to Prepare for a Home Appraisal Before Selling

Preparing for a home appraisal before selling can help ensure the appraiser has accurate information about the property and its improvements. Sellers should focus on the home's condition, document recent upgrades, address obvious maintenance issues, and work with their Realtor to provide relevant property information through the appropriate process.

Nora Pajian, a Colorado Springs Realtor with Engel & Völkers, helps sellers prepare their homes for the market and understand how pricing, condition, improvements, and comparable sales can affect a home's market position.

What Is a Home Appraisal?

A home appraisal is an independent opinion of a property's value, often completed for a buyer's lender during a financed purchase.

An appraiser may consider:

• Recent comparable sales

• Property size

• Location

• Condition

• Improvements

• Features

• Current market conditions

Why this matters

An appraisal is different from a home inspection. An inspection primarily evaluates the property's physical condition, while an appraisal focuses on value.

Start With the Home's Overall Condition

Before the appraisal, walk through the property and identify obvious maintenance issues.

Consider addressing:

• Leaking faucets

• Damaged flooring

• Broken fixtures

• Peeling paint

• Damaged doors or windows

• Visible exterior wear

Why this matters

A well-maintained property can make it easier to accurately present the home's current condition and features.

Make a List of Recent Improvements

Create a detailed list of improvements you've completed.

Examples may include:

• Kitchen renovations

• Bathroom updates

• New flooring

• Roof replacement

• HVAC replacement

• Window upgrades

• Finished basement

• Landscaping improvements

Why this matters

Providing accurate information about improvements can help ensure relevant property details are available for consideration.

Gather Documentation

If available, organize documentation related to major improvements.

This could include:

• Receipts

• Invoices

• Permits

• Contractor information

• Product specifications

• Warranties

Why this matters

Documentation can help verify when work was completed and what was involved.

Not every improvement will increase appraised value dollar-for-dollar, but accurate information gives the appraiser a clearer picture of the property.

Don't Overlook Exterior Improvements

The exterior is part of the property being evaluated.

Before the appraisal, consider:

• Maintaining the landscaping

• Cleaning exterior surfaces

• Addressing visible damage

• Checking fencing and gates

• Cleaning gutters

• Maintaining walkways and patios

Why this matters

The appraiser will consider the overall property, including exterior condition and features.

Make Sure the Property Details Are Accurate

Review the information available about the home and make sure basic facts are accurate.

Pay attention to:

• Square footage

• Bedroom count

• Bathroom count

• Lot size

• Garage spaces

• Finished areas

• Property improvements

Why this matters

Accurate property information is important when determining how a home compares with other properties.

Understand the Difference Between Above-Ground and Below-Ground Space

Finished basement areas can be valuable features, but they may be treated differently from above-ground living space depending on appraisal standards and property characteristics.

Why this matters

Sellers should avoid assuming that every finished area contributes to value in exactly the same way as above-ground living space.

Your Realtor can help you understand how similar properties in the local market have been evaluated.

Review Recent Comparable Sales With Your Realtor

Before the appraisal, your Realtor can help you understand recent comparable sales in the area.

Look at:

• Sale prices

• Property size

• Location

• Condition

• Features

• Recent improvements

• Sale dates

Why this matters

Comparable sales provide important context for understanding the property's current market position.

Don't Make Last-Minute Luxury Upgrades Just for the Appraisal

Not every expensive improvement will produce an equivalent increase in appraised value.

Before completing a major project, consider:

• Cost of the improvement

• Local buyer demand

• Comparable properties

• Expected market value

• Whether the improvement fits the surrounding homes

Why this matters

A project should make sense for the property and market—not simply be completed in hopes of increasing the appraisal.

Clean and Declutter the Property

An appraisal isn't the same as a showing, but a clean and organized property can make it easier to see its features and condition.

Consider:

• Removing unnecessary clutter

• Organizing storage areas

• Cleaning major rooms

• Improving access to mechanical systems

• Making important areas easy to view

Why this matters

The goal is not to stage the property specifically for an appraisal. It's to make the home's condition and features accessible and easy to evaluate.

Provide Relevant Information Through the Proper Process

Sellers and their Realtors may have useful information about the property, including improvements and relevant comparable sales.

Work with your Realtor and the appropriate parties to determine what information can be provided to the appraiser.

Why this matters

Accurate, relevant information can help the appraisal process by ensuring important property details aren't overlooked.

What Sellers Shouldn't Do

Avoid:

• Trying to influence the appraiser's value

• Providing inaccurate property information

• Exaggerating improvements

• Assuming every upgrade adds equal value

• Making unsupported claims about the property

• Relying on the listing price as proof of value

Why this matters

The appraiser must independently develop an opinion of value using appropriate data and professional standards.

What If the Appraisal Comes in Lower Than Expected?

A lower-than-expected appraisal can affect a financed transaction.

Depending on the purchase contract and circumstances, the parties may consider options such as:

• Reviewing the appraisal for factual errors

• Requesting a reconsideration of value through the appropriate process

• Renegotiating the purchase price

• Reviewing other contractual options

Why this matters

A low appraisal doesn't automatically mean a sale will fail. The next steps depend on the contract, financing, and circumstances of the transaction.

Common Mistakes Sellers Make Before an Appraisal

• Waiting until the last minute to address obvious maintenance issues

• Not documenting major improvements

• Assuming every renovation increases value equally

• Providing inaccurate property information

• Focusing only on the home's appearance

• Ignoring relevant comparable sales

• Assuming the listing price determines appraised value

Frequently Asked Questions

Should I make repairs before a home appraisal?

Addressing obvious maintenance issues can help present the property accurately. Whether a particular repair is worthwhile depends on its cost, condition, and potential impact.

Do renovations increase a home's appraised value?

They can contribute to value, but improvements don't necessarily increase value dollar-for-dollar. The impact depends on the quality of the work, local market conditions, comparable properties, and other factors.

What documents should I provide for an appraisal?

When available, organize receipts, invoices, permits, warranties, and other documentation for significant improvements. Your Realtor can help determine what information is appropriate to provide.

Does an appraiser consider curb appeal?

An appraiser considers the property's overall condition and characteristics. Maintaining the exterior and addressing visible issues can help ensure the property is accurately presented.

What happens if my home appraises below the contract price?

The impact depends on the buyer's financing and the purchase contract. The parties may have options to renegotiate, request a reconsideration, or pursue other remedies provided by the agreement.

Key Takeaways

• Make sure the home's condition and property information are accurately presented.

• Document major renovations and improvements.

• Address obvious maintenance issues before the appraisal.

• Review comparable sales with your Realtor.

• Don't assume expensive upgrades automatically increase value by the same amount.

• Provide relevant information through the appropriate appraisal process.

• Understand that the appraiser independently determines the property's value.

Preparing to Sell Your Colorado Springs Home?

A home appraisal can play an important role in a financed real estate transaction. Preparing your property and organizing accurate information can help ensure the appraisal process has the details needed to evaluate the home.

Nora Pajian, a Colorado Springs real estate agent with Engel & Völkers, helps sellers prepare their properties, evaluate market conditions, and develop a strategy for selling their homes.

Contact Nora today to discuss your Colorado Springs home sale.